When does executor claim for probate costs?
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ANGLICANPAT
Posts: 1,444 Forumite
I am sole executor for a friends estate -- well under the IHT allowance but will still need to obtain probate . All accounts are frozen , so death certificates and probate paperwork will befrom my own account. ( The funeral was paid for from one of his accounts by the BS . )
On the probate form , (at page 5 12.3- "other uk debts owed by the deceased" I am putting an amount owed to me for nursing home sundry services which I covered for him before he could pay me back.
Do I also use this same 12.3 'debt' box for amounts Ive paid out for probate and death certs , as I dont see any other suitable box? Thank you .
On the probate form , (at page 5 12.3- "other uk debts owed by the deceased" I am putting an amount owed to me for nursing home sundry services which I covered for him before he could pay me back.
Do I also use this same 12.3 'debt' box for amounts Ive paid out for probate and death certs , as I dont see any other suitable box? Thank you .
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ANGLICANPAT wrote: »On the probate form , (at page 5 12.3- "other uk debts owed by the deceased" I am putting an amount owed to me for nursing home sundry services which I covered for him before he could pay me back.
Do I also use this same 12.3 'debt' box for amounts Ive paid out for probate and death certs , as I dont see any other suitable box? Thank you .
Yes 12.3 for the debt to you. You can't claim the probate and death cert costs, they just come out of estate funds.0 -
Thanks for swift reply, hoped that was the case , will save me a lot of trouble rather than claiming back afterwards as theyre the only items I need taking into account.0
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Make sure you keep receipts for absolutely everything you are paying for with your own money - even if it's a single stamp; no receipt will mean it will be difficult for to you to reimbursed from the estate.0
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Yes 12.3 for the debt to you. You can't claim the probate and death cert costs, they just come out of estate funds.
Just come back to this after my holidays -- just realized Im not clear HOW the costs Ive outlaid for probate, stamps, certificates come back to me out of the estate funds if they dont go under 12.3 as a debt? I cant see where on the 205 form , they would go? Cant imagine I would just be free to remove my costs from the estate once I have probate?0 -
Being an executor is also being a trustee and as such you are expected to act in the interests of the estate rather than yourself. So claiming costs like this is quite normal and legitimate.ANGLICANPAT wrote: »Just come back to this after my holidays -- just realized Im not clear HOW the costs Ive outlaid for probate, stamps, certificates come back to me out of the estate funds if they dont go under 12.3 as a debt? I cant see where on the 205 form , they would go? Cant imagine I would just be free to remove my costs from the estate once I have probate?0 -
Ah , I see , many thanks Yorkshireman .0
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Once you have probate as executor you will have access to the funds yourself and will be able to pay yourself any expenses, also pay debts of the deceased and then pass on the remaining funds to the beneficiaries as per the will.
Keep accounts in case any beneficiary annoyingly feels that you have taken more than you should .. of course anything you have paid out eg certs / probate / care home fees / reasonable expenses etc are covered0 -
ANGLICANPAT
have you opened a separate account to deal with the estate? If not, I suggest you do so immediately. It is so much easier to keep an audit tail if the estate funds, payments etc are kept separate.
I've recently got Probate in respect of my late sister's estate. No IHT payable but the IHT400 & accompanying forms were necessary. She had substantial savings and there is also a property to sell, with resulting utility etc bills to pay.
I opened an Everyday Current account with Santander, in my name, but into which all estate funds have been paid and from which all estate bills and some distributions have been made. I funded the account initially with my own money but immediately withdrew the same amount once funds were available. That way, my co executor (reserved powers) can see exactly what's come in & gone out and I will probably let both beneficiaries, my niece & nephew, have copies when the estate is finalised.0 -
I have indeed Badger thanks . N.Wide advised me I could just use one of my existing two current accounts with them by emptying and renaming it as the Executor Acc.0
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ANGLICANPAT wrote: »I have indeed Badger thanks . N.Wide advised me I could just use one of my existing two current accounts with them by emptying and renaming it as the Executor Acc.
Fair enough, but probably just as easy to open a new squeeky clean account, with one of your existing banks.0
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