C1 Confirmation Inventory: are refunded pre-paid care home fees an asset?

frimousse2

Evening everyone. I'm finalising the inventory part of the C1 form for Confirmation and wondering whether I'm right in listing a refund of pre-paid care home fees as an asset. My mum paid a deposit when she moved into the care home. She died half way through September. The contract states that fees are due for X days following death. The refund presumably encompasses the original deposit plus whatever is owed to my mum for the period between the end of the contractual notice period and the end of September. Is the entire refund amount considered to be an asset for Confirmation, or just the deposit? Or neither? Thanks in advance for any advice or suggestions.

Keep_pedalling

I believe those would be debts owed to the estate so yes they need to be included.

frimousse2

Thank you, that’s pretty much what I’m thinking, just had a slight doubt.

A rather larger doubt has surfaced In finalising pages 4 & 5 of the C1 regarding gross and net values of the estate. I would say my mum had no debts or liabilities, other than the cost of the funeral, but now I’m wondering whether I need to estimate her tax liability for the year of death - there will definitely be one - and put that in box 14 of page 4. The guidance notes seem to refer to items that would be clearly owed by the deceased at date of death, rather some subsequent tax calculation, but I’m not sure. There’s definitely no IHT to pay. Once again, any pointers or clarification would be much appreciated.

buddy9

If the deceased owed income tax then the amount owed would be added into box 14. If you do not yet know the amount owed, then with the estate being below the IHT threshold, you can enter an estimate of the amount of income tax owed.

frimousse2

Thank you, buddy9, it seems strange that the guidance notes don’t refer specifically to tax owing, as many estates must surely have some amount of tax to pay for the year to d.o.d. I couldn’t find a thread on this forum that discussed the question. I’d already paid what she owed for 2025/26 before she died, so at least that’s done. Her estate is actually above the IHT threshold but benefits from the full transferable nil rate band.

Is it necessary to state in a covering letter that the amount in box 14 is an estimated amount?

Once again, thanks for your comments. They are much appreciated.

buddy9

The guidance - form C3 - has so many shortcomings and errors.

There is no facility, or need, to explain your entry in box 14.

frimousse2

Thanks, buddy9, the whole process seems riddled with errors and omissions designed to trap the unwary. I hope this thread helps others with the same question. I’ll ask my accountant to do the estimate.