obtaining probate for deceased person????

kunash

femigirl wrote: »

You have to use your own financial.

thanks for the reply. can i ask, what happens if the iht bill is say 300,000, and we dont have the money in our own accounts ( presuming we cant touch the deceased accounts ) where are you suppose to get the money from to obtain the probate? thanks

noh

kunash wrote: »

thanks for the reply. can i ask, what happens if the iht bill is say 300,000, and we dont have the money in our own accounts ( presuming we cant touch the deceased accounts ) where are you suppose to get the money from to obtain the probate? thanks

In that instance you need to borrow it!
The situation is very unlikely to happen now because of the availability of the IHT direct payment scheme. But before it came into existence it was not uncommon for executors to borrow money to pay IHT.

Nigel

utterbar

The IHT bill will generally be made up of two components - part that is payable before the grant is issued (usually the tax on bank balances, chattels, shares etc) and part that is payable by instalments (on houses). The amount payable immediately needs to be paid before HMRC will send the relevant bit of paper to the probate registry. IIRC the first instalment on the balance isn't due until the end of the sixth month after the date of death.

Some institutional creditors (some banks, and National Savings amongst others) will release funds for direct payment of IHT. They will either send a cheque for the executors to send to HMRC or pay it directly to HMRC on behalf of the estate. It may be possible to reduce the amount that you need to find for the first payment that way.

kunash

noh wrote: »

You also state the proceeds of the sale of your Aunts house are held in a bank account in your Mothers name so they too are available.

my mum has these funds in her now sole account. an ex bank manager came around to see my mum yesterday, he is now a financial adviser.
( friend of a friend so to speak ).

he said he would just forget about those funds, and not even mention them. but as executor you have to swear an oath and say the information given is correct, to the best of your knowledge. how deeply do the inland revenue check these details?

Errata

I expect the solicitors who are acting as joint executors with you and your mum won't want to be involved in anything crooked, even if you and your mum don't mind thieving from a dead persons estate.

noh

kunash wrote: »

my mum has these funds in her now sole account. an ex bank manager came around to see my mum yesterday, he is now a financial adviser.
( friend of a friend so to speak ).

he said he would just forget about those funds, and not even mention them. but as executor you have to swear an oath and say the information given is correct, to the best of your knowledge. how deeply do the inland revenue check these details?

Making a false declaration is fraud.
If your Aunts address as stated in the Will is the address of the house that has been sold and is different to her address at time of death HMRC will ask about the the proceeds of the sale.

Nigel

noh

Errata wrote: »

I expect the solicitors who are acting as joint executors with you and your mum won't want to be involved in anything crooked, even if you and your mum don't mind thieving from a dead persons estate.

Thats slightly out of order. What was suggested was thieving from HMRC!

kunash

i totally agree, it is fraud, and illegal, i was just mentioning what this ex bank manger said to me, and my mum. you do have to sign an oath, and it isnt something i would do knowing that i hadnt mentioned a large amount of money.

it is still in my mums account, so we will keep it there, and so have access to it at the time of iht.

this man saw my mum alone, and phoned me, he mentioned the idea to me then, and my mum thought it was a good idea, i guess because this 'respectable' man advised her so.

thanks for the replies

Edinburghlass_2

kunash wrote: »

my mum has these funds in her now sole account. an ex bank manager came around to see my mum yesterday, he is now a financial adviser.
( friend of a friend so to speak ).

he said he would just forget about those funds, and not even mention them. but as executor you have to swear an oath and say the information given is correct, to the best of your knowledge. how deeply do the inland revenue check these details?

I think you need to check out this "friend of a friend" and make sure they are in fact a qualified financial advisor and also make sure your mother hasn't signed any contract with them to handle her financial affairs.

Cook_County

There are various tasks that you may be able to do that would save costs:

1. Organise the paperwork properly. Most solicitors charge based on time spent so giving them a suitcase of old documents will waste time. Therefore organise everything after you have shown the suitcase as it is now to the solicitor (so you do not get accused of theft of any of the possible contents).

2. Tell them now about gifts you know were made in the 7 years prior to death such as the one you mention above (to save them having to waste time asking).

3. Draft a clear family tree so they know who is who and where they all are.

4. Suggest a local accountant to prepare the final income tax and inheritance tax returns if the one they will use is more expensive then the one you usually use.