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  • FIRST POST
    • colcheslad
    • By colcheslad 17th Oct 19, 8:56 PM
    • 210Posts
    • 99Thanks
    colcheslad
    So confused :( IHT and probate
    • #1
    • 17th Oct 19, 8:56 PM
    So confused :( IHT and probate 17th Oct 19 at 8:56 PM
    Hi all, apologies for the vague title, I'm just a little overwhelmed! My father passed recently and my sister and I are joint executors. The estate is worth over 325k but the nil rate residency allowance would mean that no IHT would be payable.

    I understand that I need to submit the form as if IHT was payable, accompanied by the nil residence form.

    My question is, can we begin to access pensions and bank accounts before IHC calculations have been accepted and probate granted (we haven't even started this process yet)? Do we need financial institutions to provide accurate balances or can we estimate from the most recent paperwork?

    Apologies again, we are rather young and haven't had to deal with this kind of stuff before any advice so very gratefully received.
Page 1
    • Linton
    • By Linton 17th Oct 19, 9:47 PM
    • 11,373 Posts
    • 11,793 Thanks
    Linton
    • #2
    • 17th Oct 19, 9:47 PM
    • #2
    • 17th Oct 19, 9:47 PM
    My question is, can we begin to access pensions and bank accounts before IHC calculations have been accepted and probate granted (we haven't even started this process yet)?
    Originally posted by colcheslad

    Yes.


    Pensions are not part of the estate and so arent affected by probate or IHT. You should inform the pension provider of the death. They will ask for a copy of the death certificate. Exactly what happens to any money left in the pension depends on the rules of the pension. Money in simple DC pensions will normally be paid directly to the person nominated by the deceased when the pension was set up



    Banks generally will pay out cash from the deceased's accounts to the executor up to some bank-defined limit, this is normally several 10Ks. You will need to provide a death certificate and a copy of the will to prove that you are an executor. If the money in the account is more than the limit the bank will require probate. If you talk to the bank they will set up an appointment with a bereavement specialist who will guide you through the processes.


    The bank will pay the funeral directors bill directly from the deceased's account, just give the bank the invoice.






    Do we need financial institutions to provide accurate balances or can we estimate from the most recent paperwork?

    You need accurate balances.



    You should ask for statements as at the date of death. This is the basis of the accounting for the estate and for IHT. You should include banks, utilities, council tax, pension payments etc etc There will in general be refunds from money paid in advance. My experience is that financial institutions and major companies are now well organised in dealing with this.
    • badger09
    • By badger09 19th Oct 19, 12:59 PM
    • 7,516 Posts
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    badger09
    • #3
    • 19th Oct 19, 12:59 PM
    • #3
    • 19th Oct 19, 12:59 PM
    Sorry for your loss.

    Speak to the Bereavement Team @ each bank, financial institution and utility company. They are specially trained and I found them very helpful. They will tell you exactly what they need from you.
    • colcheslad
    • By colcheslad 21st Oct 19, 1:37 PM
    • 210 Posts
    • 99 Thanks
    colcheslad
    • #4
    • 21st Oct 19, 1:37 PM
    • #4
    • 21st Oct 19, 1:37 PM
    That's really helpful, thank you so much both. I completed the 'Death Notification Service' last week so I assume the banks will be in contact in due course.

    OK, so we need accurate balances for the IHT calculation. Bank accounts and savings should be easy, but how about household items? Do we need to value every item of furniture (for example 10 year old sofas) etc even if most of it will probably get binned?
    • Mojisola
    • By Mojisola 21st Oct 19, 1:42 PM
    • 31,616 Posts
    • 81,040 Thanks
    Mojisola
    • #5
    • 21st Oct 19, 1:42 PM
    • #5
    • 21st Oct 19, 1:42 PM
    OK, so we need accurate balances for the IHT calculation. Bank accounts and savings should be easy, but how about household items? Do we need to value every item of furniture (for example 10 year old sofas) etc even if most of it will probably get binned?
    Originally posted by colcheslad
    Unless there are items that are antique and valuable, just put a token amount for the household stuff - our solicitor put 500 for all the contents of a four-bed house.
    • badger09
    • By badger09 21st Oct 19, 4:51 PM
    • 7,516 Posts
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    badger09
    • #6
    • 21st Oct 19, 4:51 PM
    • #6
    • 21st Oct 19, 4:51 PM
    That's really helpful, thank you so much both. I completed the 'Death Notification Service' last week so I assume the banks will be in contact in due course.

    OK, so we need accurate balances for the IHT calculation. Bank accounts and savings should be easy, but how about household items? Do we need to value every item of furniture (for example 10 year old sofas) etc even if most of it will probably get binned?
    Originally posted by colcheslad
    I haven't used the 'Death Notification Service' so don't know how reliable it is, but I do know it doesn't cover every financial institution.

    If you haven't heard from all those involved after 10 working days I recommend you contact the individual bereavement teams.
    • Owain Moneysaver
    • By Owain Moneysaver 21st Oct 19, 7:39 PM
    • 10,209 Posts
    • 12,949 Thanks
    Owain Moneysaver
    • #7
    • 21st Oct 19, 7:39 PM
    • #7
    • 21st Oct 19, 7:39 PM
    OK, so we need accurate balances for the IHT calculation. Bank accounts and savings should be easy, but how about household items? Do we need to value every item of furniture (for example 10 year old sofas) etc even if most of it will probably get binned?
    Originally posted by colcheslad
    You need to keep records of all assets in the estate, but items of low/no value can be grouped together as "lounge furniture - skip or charity shop 0".
    A kind word lasts a minute, a skelped erse is sair for a day.
    • Tom99
    • By Tom99 22nd Oct 19, 2:27 AM
    • 5,044 Posts
    • 3,547 Thanks
    Tom99
    • #8
    • 22nd Oct 19, 2:27 AM
    • #8
    • 22nd Oct 19, 2:27 AM
    You need to keep records of all assets in the estate, but items of low/no value can be grouped together as "lounge furniture - skip or charity shop 0".
    Originally posted by Owain Moneysaver
    You only need to separately list anything of significant value, say 1,000+ the rest you just list as household and personal goods total 0/500/1000 or whatever.
    Last edited by Tom99; 22-10-2019 at 2:31 AM.
    • getmore4less
    • By getmore4less 22nd Oct 19, 6:19 AM
    • 37,587 Posts
    • 23,228 Thanks
    getmore4less
    • #9
    • 22nd Oct 19, 6:19 AM
    • #9
    • 22nd Oct 19, 6:19 AM
    My father passed recently and my sister and I are joint executors. The estate is worth over 325k but the nil rate residency allowance would mean that no IHT would be payable.
    Any spouse transferable nil rate bands or spouse still alive and inheriting?
    • colcheslad
    • By colcheslad 22nd Oct 19, 7:40 PM
    • 210 Posts
    • 99 Thanks
    colcheslad
    Any spouse transferable nil rate bands or spouse still alive and inheriting?
    Originally posted by getmore4less
    Thanks everyone, again. So my mother died last year (almost a year to date!), I assume this wouldn't affect the nil rate band?
    • getmore4less
    • By getmore4less 22nd Oct 19, 8:43 PM
    • 37,587 Posts
    • 23,228 Thanks
    getmore4less
    Who administered your mums estate

    We're they married at the time of he death.
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