Keeping or closing accounts

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82101432#Comment_82101432

There are services that executers can use to locate unknown assets, e.g.:

https://www.titleresearch.com/news/importance-of-asset-searching

Executors must locate all the assets in an estate so that they do not disadvantage the beneficiaries and it is therefore vital due diligence and part of industry best practice to conduct an asset search on every probate case.

The implications for Executors of not locating all assets during probate include; HMRC fines for understated Inheritance Tax, lack of financial viability for probate professionals to re-open files if the value of the missed assets is small, and additional costs to Executors incurred from having to re-do estate paperwork.

Completing a financial asset search ensures that the Executor can demonstrate that they have discharged their duty to search for assets and it negates any potential issue with HMRC regarding incorrect IHT liability.

I expect that HMRC takes a particular interest in very large estates.

subjecttocontract

I suspect many people agree to take on the role of executor without knowing they need to carry out an 'asset search'. HMRC may not have the resources to investigate every small/medium/average estate value, instead concentrating on the bigger ones.

Presumably estates can be grouped into small, average, large and very large. Very large would be £multi million or bigger and I guess they are very likely to have their estate dealt with by professionals.

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82101541#Comment_82101541

HMRC currently considers tax payers with assets of more than £2 million (or an income of more than £200K) to be "wealthy". HMRC has a Wealthy Team to harass investigate the affairs of these tax payers. About 2% of UK tax payers are classified as "wealthy" so it is not a particularly exclusive club.

Yorkie1

@subjecttocontract

I often close accounts when I have no further use for them. The upside is it keeps my accounts tidy and I may qualify for a future switch bonus. The downside is I might miss a good offer to existing account holders......which is exactly what happened with Halifax, I closed the account and was not able to open the 8% reg saver.

I hadn't had a Halifax account for years, but my log in for the website still worked, and I now have an 8% saver.

Richmc

I have a number of savings accounts with zero balance as I'm always on the lookout for the best rates, currently I'm with Oxbury at 5.1% this ends at the end of Summer so I'll swap to another one but keep this one open, normally offers are only available to new customers anyway. Normally banks will only transfer £20,000 in one transaction and will block the account after three or four transfers, so I contact them and have the limit lifted.

subjecttocontract

I think Halifax may have got annoyed with me at the end of last year as I slowly requested that they close my outstanding Halifax accounts one at a time, some with just a few pence in them. So the fact my Halifax log in doesn't work any more is no real surprise.