Council Tax Liability after Probate
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Hi,
My mother died in october last year and left her assets including property, cash and a few shares to me and my sister.
Following death we informed the council and council tax payment was stopped and they said there was an over payment and this would be refunded once probabte had been granted.
Probate was granted at the end of January and copy sent to the council who has sent a refund to the solicitor but has also sent a bill to us for Council tax from probate date to end of March.
My understanding from the councils website (Cornwall County Council) and the government website is that we were exempt (class F) from paying council tax for up to 6 months after probate date ?
I'm trying to understand why we have been charged and where the liability to pay stands ??
The property has been empty since her death, although I did stay there briefly while she was in a hospice and until a week after her funeral. Council said this was fine as long as it wasn't long term. House was cleared and placed on the market and a sale recently agreed.
The WILL doesn't leave the property to anyone it just says:-
'I GIVE all my property not otherwise disposed of by this my Will or by any Codicil hereto UNTO my trustees UPON TRUST:
1. To pay my funeral and testamentary expenses inhertitance tax debits and legacies and
2. Divide the residue (my Residuary Estate) equally among my children .....
I'm assuming property in this case means ALL her assets.
Myself and my sister are joint Executors and trustee's of the WILL
Does the property belong to the 'estate' until sold and therefore Class F exemption applies in the case ?
Are Cornwall County Council pulling at fast one ?
Thanks
My mother died in october last year and left her assets including property, cash and a few shares to me and my sister.
Following death we informed the council and council tax payment was stopped and they said there was an over payment and this would be refunded once probabte had been granted.
Probate was granted at the end of January and copy sent to the council who has sent a refund to the solicitor but has also sent a bill to us for Council tax from probate date to end of March.
My understanding from the councils website (Cornwall County Council) and the government website is that we were exempt (class F) from paying council tax for up to 6 months after probate date ?
I'm trying to understand why we have been charged and where the liability to pay stands ??
The property has been empty since her death, although I did stay there briefly while she was in a hospice and until a week after her funeral. Council said this was fine as long as it wasn't long term. House was cleared and placed on the market and a sale recently agreed.
The WILL doesn't leave the property to anyone it just says:-
'I GIVE all my property not otherwise disposed of by this my Will or by any Codicil hereto UNTO my trustees UPON TRUST:
1. To pay my funeral and testamentary expenses inhertitance tax debits and legacies and
2. Divide the residue (my Residuary Estate) equally among my children .....
I'm assuming property in this case means ALL her assets.
Myself and my sister are joint Executors and trustee's of the WILL
Does the property belong to the 'estate' until sold and therefore Class F exemption applies in the case ?
Are Cornwall County Council pulling at fast one ?
Thanks
0
Comments
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Might be an idea to give the Council Tax officer a ring, just to clarify the situation.
It could be a mistake, or Council policy, or something else. They hold the answer.
Councils vary, so it would be unwise to accept information relating to a different Council if anyone offers advice.0 -
If the property has been transferred to you and your sister the exemption does not apply, otherwise it should.0
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The same legislation applies to all, each local authority should be following the same.Councils vary, so it would be unwise to accept information relating to a different Council if anyone offers advice.
The Class F exemption only applies where there is no other owner of the property, the 6 month post probate can only apply where the estate still holds the property.
It appears either that the council have made a mistake or they are happy in their minds that the estate has passed the property on (who is shown on the land registry as owner ?). In the first instance the only way is to contact them and ask. If they still hold firm that the property is no longer in the ownership of the estate then the only way forward for a binding decision would be to apply to a valuation tribunal.I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.0 -
[FONT=Verdana, sans-serif]Class F say 0-6 months and also 'up to' 6 months. Maybe the Council think they have discretion as to how much to offer?[/FONT]0
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'A dwelling which has remained unoccupied since the date of death of the deceased person who was formally liable as owner, leaseholder or tenant, and for up to 6 months after grant of probate, and no person is a qualifying person for the property in any other capacity other than as executor of the estate.'
The phrase 'up to' means 0 to six months.
It looks like Cornwall goes to the smaller end of that scale, which does not surprise me. There's a steady flow of stories from Cornwall about their meanness towards residents and willingness to spend money on jollies to the south of France.
Would be delighted to be proved wrong.0 -
[FONT=Verdana, sans-serif]Class F say 0-6 months and also 'up to' 6 months. Maybe the Council think they have discretion as to how much to offer?[/FONT]
No, it is not a discretionary power. The '0-6' and 'up-to' just cover the fact that the post probate Class F is capped at 6 months but will cease earlier than that if the qualifying criteria are no longer met.
The Council Tax (exempt dwellings) order 1992 (as amended) covers the situation. To summarise, the Class F (once probate has been awarded) is time limited in it's award by way of the following text:[FONT="]
The earlier sections of the exemption give the actual criteria which must be met.in a case where a grant of probate or letters of administration has been made, if less than six months have elapsed since the date of the grant;
[/FONT]I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.0 -
No, it is not a discretionary power. The '0-6' and 'up-to' just cover the fact that the post probate Class F is capped at 6 months but will cease earlier than that if the qualifying criteria are no longer met.
The Council Tax (exempt dwellings) order 1992 (as amended) covers the situation. To summarise, the Class F (once probate has been awarded) is time limited in it's award by way of the following text:[FONT="]The earlier sections of the exemption give the actual criteria which must be met.
[/FONT]
So the Council are wrong and cannot charge until July or an earlier sale?0 -
So the Council are wrong and cannot charge until July or an earlier sale?
If the property is still unoccupied and held by the estate then yes but as to why they've made the current decision we don't know - is it an error or have they found some information they believe shows otherwise ?
Although the previous posts have all worked around the owner aspect there are some other aspects which could be relevant,but obviously unless we know why the council have made their decision it's hard to tell. It could, for example, be down to the council thinking the property has become occupied.I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.0 -
Thanks all for your replies.
The property is definately not owned by me or my sister, we've not had it transferred into our names with the Land Registry, its still registered to my mother.
Property has also been empty since I left a week after the funeral. I live in another part of the country.
All we've done is to de-personalise the house and put it on the market via an estate agent and now instructed a solicitor to put the sale through.
From what I've read, it all depends who they consider the 'owner' to be.
So far my sister has been dealing with the sale and the council. When I get the bill through I'll give them a ring and ask them on what grounds they are refusing class F: exemption.
Any other questions I should ask ?
Thanks again0 -
For now the only question you need to ask is why the Class F is not in place. Until you get an answer with that you are stuck with moving forward.I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.0
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