Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • jude_pmc
    • By jude_pmc 9th Jan 18, 5:14 PM
    • 10Posts
    • 3Thanks
    jude_pmc
    Executor needing money back from beneficiaries
    • #1
    • 9th Jan 18, 5:14 PM
    Executor needing money back from beneficiaries 9th Jan 18 at 5:14 PM
    I foolishly distributed some of my parentís 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 canít pay this month etc.

    The house has now been sold for over a year but I have not told the tax office because I havenít 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 estateís 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
Page 1
    • Keep pedalling
    • By Keep pedalling 9th Jan 18, 5:25 PM
    • 5,110 Posts
    • 5,693 Thanks
    Keep pedalling
    • #2
    • 9th Jan 18, 5:25 PM
    • #2
    • 9th Jan 18, 5:25 PM
    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?
    • Margot123
    • By Margot123 9th Jan 18, 6:06 PM
    • 853 Posts
    • 879 Thanks
    Margot123
    • #3
    • 9th Jan 18, 6:06 PM
    • #3
    • 9th Jan 18, 6:06 PM
    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.
    • Crabapple
    • By Crabapple 9th Jan 18, 6:55 PM
    • 1,570 Posts
    • 7,134 Thanks
    Crabapple
    • #4
    • 9th Jan 18, 6:55 PM
    • #4
    • 9th Jan 18, 6:55 PM
    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.
    Daughter born January 2012 Son born February 2014

    Slimming World ~ trying to get back on the wagon...
    • Keep pedalling
    • By Keep pedalling 9th Jan 18, 9:34 PM
    • 5,110 Posts
    • 5,693 Thanks
    Keep pedalling
    • #5
    • 9th Jan 18, 9:34 PM
    • #5
    • 9th Jan 18, 9:34 PM
    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.
    Originally posted by Crabapple
    Even worse after all this time you may have a CGT bill to pay as well.
    • Yorkshireman99
    • By Yorkshireman99 9th Jan 18, 10:03 PM
    • 4,270 Posts
    • 3,486 Thanks
    Yorkshireman99
    • #6
    • 9th Jan 18, 10:03 PM
    • #6
    • 9th Jan 18, 10:03 PM
    I foolishly distributed some of my parentís 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 canít pay this month etc.

    The house has now been sold for over a year but I have not told the tax office because I havenít 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 estateís 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
    Originally posted by jude_pmc
    You need urgent, paid for, professional advice on how to sort the mess out and minimise the penalties.
    • Tom99
    • By Tom99 10th Jan 18, 6:42 AM
    • 2,261 Posts
    • 1,532 Thanks
    Tom99
    • #7
    • 10th Jan 18, 6:42 AM
    • #7
    • 10th Jan 18, 6:42 AM
    How much do you need to recover?
    • chesky
    • By chesky 10th Jan 18, 7:27 AM
    • 1,003 Posts
    • 1,632 Thanks
    chesky
    • #8
    • 10th Jan 18, 7:27 AM
    • #8
    • 10th Jan 18, 7:27 AM
    ... some of us have paid back our share
    ... but I have not told the tax office

    Where have you paid the money?
    • Margot123
    • By Margot123 10th Jan 18, 8:35 AM
    • 853 Posts
    • 879 Thanks
    Margot123
    • #9
    • 10th Jan 18, 8:35 AM
    • #9
    • 10th Jan 18, 8:35 AM
    You need urgent, paid for, professional advice on how to sort the mess out and minimise the penalties.
    Originally posted by Yorkshireman99
    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.
    • jude_pmc
    • By jude_pmc 11th Jan 18, 12:05 PM
    • 10 Posts
    • 3 Thanks
    jude_pmc
    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.
    Originally posted by Crabapple


    Many thanks to everyone. With this info i can put pressure on them without just appearing bossy. Yes thiese are my siblings!
    • getmore4less
    • By getmore4less 12th Jan 18, 8:30 AM
    • 32,192 Posts
    • 19,352 Thanks
    getmore4less
    Was there not enough from the house sale to pay the tax?
    • Margot123
    • By Margot123 12th Jan 18, 8:55 AM
    • 853 Posts
    • 879 Thanks
    Margot123
    Many thanks to everyone. With this info i can put pressure on them without just appearing bossy. Yes thiese are my siblings!
    Originally posted by jude_pmc
    So, you aren't going to bother with proper legal advice then?

    The words of random strangers will save a few quid but can turn out very costly. Family ties mean diddly-squat when it comes to money. Believe me, I've been there and it's proven very expensive indeed. More expensive than any solicitor would have charged.
    • Yorkshireman99
    • By Yorkshireman99 12th Jan 18, 9:29 AM
    • 4,270 Posts
    • 3,486 Thanks
    Yorkshireman99
    Many thanks to everyone. With this info i can put pressure on them without just appearing bossy. Yes thiese are my siblings!
    Originally posted by jude_pmc
    You need to realise that you personally as executor are rresponsible for your errors and the penalties like to be imposed by HMR&C. Proper paid for legal advice will minimise the cost of putting thing right.
    Last edited by Yorkshireman99; 07-02-2018 at 4:50 PM.
    • jude_pmc
    • By jude_pmc 7th Feb 18, 4:15 PM
    • 10 Posts
    • 3 Thanks
    jude_pmc
    Thanks re paying house IHT
    Thanks for all the advice. My siblings have now paid their share into my executors account so that I can pay the remainder of the house IHT.

    I phoned to notify IHT and they did not ask me the date of sale.


    FYI: Yes we had intended to pay the tax out of the sale of the house but then two of my siblings decided they wanted to keep it so bought us out and possibly then have cash flow problems. Those who sold have paid the Cap gains, the house was split between the beneficiaries and sold on the same day (with help from a solicitor).
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,650Posts Today

7,871Users online

Martin's Twitter
  • Ah these care free days of watching #ENG score 5 goals in the first half of a World Cup match. It reminds me of... Never.

  • Then it should be. It's not some accident. It's deliberate grappling https://t.co/UxVTuUSNio

  • Penalty yes but time someone was sent off for these wrestling moves #WorldCup

  • Follow Martin