Executor needing money back from beneficiaries
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jude_pmc
Posts: 10 Forumite
I foolishly distributed some of my parent’s estate money to the beneficiaries before all the house tax has been paid. The inherited house has now been sold, and some of us have paid back our share to pay the tax but two always have an excuse why they can’t pay this month etc.
The house has now been sold for over a year but I have not told the tax office because I haven’t the money to pay the rest of the tax. We are 6 years into the maximum 10 year instalment payments. When I do the yearly estate’s tax assessment I put in a return of £0 income, which is true.
If I give this situation a bit more time to resolve am I acting illegally? Can I have my savings grabbed? Might I be made to pay a fine? Might I end up with a court case against me?
Thanks for any advice
The house has now been sold for over a year but I have not told the tax office because I haven’t the money to pay the rest of the tax. We are 6 years into the maximum 10 year instalment payments. When I do the yearly estate’s tax assessment I put in a return of £0 income, which is true.
If I give this situation a bit more time to resolve am I acting illegally? Can I have my savings grabbed? Might I be made to pay a fine? Might I end up with a court case against me?
Thanks for any advice
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Comments
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Oh dear, as the executor you are responsible for paying the tax, so you may end up paying and having to case the other beneficiaries through the courts to get it back.
Are these beneficiaries your siblings?0 -
Have you asked 'nicely' via email, text, friendly letter?
If so, forget that approach, and send them a letter by recorded delivery written in a formal style. Give them 28 days to pay or you will be instructing a solicitor.
That might give them a nudge.0 -
As soon as the property has sold the instalment option ends so you really have no choice but to press them and you must pay the tax as soon as possible.:heartpuls Daughter born January 2012 :heartpuls Son born February 2014 :heartpuls
Slimming World ~ trying to get back on the wagon...0 -
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You need urgent, paid for, professional advice on how to sort the mess out and minimise the penalties.I foolishly distributed some of my parent’s estate money to the beneficiaries before all the house tax has been paid. The inherited house has now been sold, and some of us have paid back our share to pay the tax but two always have an excuse why they can’t pay this month etc.
The house has now been sold for over a year but I have not told the tax office because I haven’t the money to pay the rest of the tax. We are 6 years into the maximum 10 year instalment payments. When I do the yearly estate’s tax assessment I put in a return of £0 income, which is true.
If I give this situation a bit more time to resolve am I acting illegally? Can I have my savings grabbed? Might I be made to pay a fine? Might I end up with a court case against me?
Thanks for any advice0 -
How much do you need to recover?0
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... some of us have paid back our share
... but I have not told the tax office
Where have you paid the money?0 -
Yorkshireman99 wrote: »You need urgent, paid for, professional advice on how to sort the mess out and minimise the penalties.
Yes, heed this advice rather than waiting for well-intended responses from random strangers.
A few pounds spent now with a solicitor will save a lot of trouble further down the line and will show HMRC you are dealing with the problem rather than avoiding payment.0 -
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Was there not enough from the house sale to pay the tax?0
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