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    • aimeealicia11
    • By aimeealicia11 13th Oct 18, 12:13 PM
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    aimeealicia11
    Inland revenue clearance
    • #1
    • 13th Oct 18, 12:13 PM
    Inland revenue clearance 13th Oct 18 at 12:13 PM
    Hi
    I am a beneficiary in a family members will. It is now 14 months since he died, his property was sold 5 months ago. Statutory notices were placed Nov 2017 and all money has now been collected.
    The executors are a solicitor and a family member. The family member isn't prepared to have any form of contact with any of the beneficiaries so any request for an update has to be via the solicitor.
    The last update from the solicitor said that he needed clearance from Inland Revenue before he could distribute the estate. Is this usual practise for an estate which is valued at below the inheritance tax threshold?
    Thanks in anticipation.
Page 1
    • Tom99
    • By Tom99 13th Oct 18, 12:49 PM
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    Tom99
    • #2
    • 13th Oct 18, 12:49 PM
    • #2
    • 13th Oct 18, 12:49 PM
    If tax could be outstanding and not yet agreed there is no reason why an executor cannot make a partial distribution and hold back enough to cover the max possible tax bill.
    Do you know if the house was sold for more than the probate value used? That might create a CGT bill even if no IHT is due?
    • aimeealicia11
    • By aimeealicia11 13th Oct 18, 12:56 PM
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    aimeealicia11
    • #3
    • 13th Oct 18, 12:56 PM
    • #3
    • 13th Oct 18, 12:56 PM
    Thank you for your reply.
    The house was sold for 135k and the entire value of the estate was 238k, according to the probate grant. The deceased would also have been able to make use of his wifes IHT threshold, if needed, she died in 2014 leaving everything to him.
    • AnotherJoe
    • By AnotherJoe 13th Oct 18, 1:04 PM
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    AnotherJoe
    • #4
    • 13th Oct 18, 1:04 PM
    • #4
    • 13th Oct 18, 1:04 PM
    Ask the solicitor when they expect this will be forthcoming.
    I dont think i ever received anything called "clearance" from HMRC when i did my mothers probate. The only hassle i had was from DWP. Having said that i havent sold her property yet. But like yours, the total value was under the IHT threshold.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • aimeealicia11
    • By aimeealicia11 13th Oct 18, 1:06 PM
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    aimeealicia11
    • #5
    • 13th Oct 18, 1:06 PM
    • #5
    • 13th Oct 18, 1:06 PM
    Thank you. If I haven't heard anything from the solicitor, by the end of this month, then I will email him and ask for a further update.
    • Yorkshireman99
    • By Yorkshireman99 13th Oct 18, 1:36 PM
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    Yorkshireman99
    • #6
    • 13th Oct 18, 1:36 PM
    • #6
    • 13th Oct 18, 1:36 PM
    Hi
    I am a beneficiary in a family members will. It is now 14 months since he died, his property was sold 5 months ago. Statutory notices were placed Nov 2017 and all money has now been collected.
    The executors are a solicitor and a family member. The family member isn't prepared to have any form of contact with any of the beneficiaries so any request for an update has to be via the solicitor.
    The last update from the solicitor said that he needed clearance from Inland Revenue before he could distribute the estate. Is this usual practise for an estate which is valued at below the inheritance tax threshold?
    Thanks in anticipation.
    Originally posted by aimeealicia11
    Time to serve the executor a with a formal complaint. And the solicitor.
    • aimeealicia11
    • By aimeealicia11 13th Oct 18, 1:51 PM
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    aimeealicia11
    • #7
    • 13th Oct 18, 1:51 PM
    • #7
    • 13th Oct 18, 1:51 PM
    Really Yorkshireman99?
    This is the first time I've ever been a beneficiary in a will, I've had to research quite a lot but I'm still not as knowledgeable as I'd like to be. Would that be your next move?
    • Flugelhorn
    • By Flugelhorn 13th Oct 18, 4:10 PM
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    Flugelhorn
    • #8
    • 13th Oct 18, 4:10 PM
    • #8
    • 13th Oct 18, 4:10 PM
    Unless they are wondering if there will be an income tax bill? If so they could distribute most of the estate and then keep an amount of money back to cover that
    • Yorkshireman99
    • By Yorkshireman99 13th Oct 18, 4:24 PM
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    Yorkshireman99
    • #9
    • 13th Oct 18, 4:24 PM
    • #9
    • 13th Oct 18, 4:24 PM
    Unless they are wondering if there will be an income tax bill? If so they could distribute most of the estate and then keep an amount of money back to cover that
    Originally posted by Flugelhorn
    After that amount of time and the unreasonable behaviour of the executor at the very least a firmly worded but polite letter is the very least I would do. Inland Revenue clearance is usually only done if the estate is paying IHT and that precedes probate
    Last edited by Yorkshireman99; 13-10-2018 at 4:47 PM.
    • Flugelhorn
    • By Flugelhorn 13th Oct 18, 4:28 PM
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    Flugelhorn
    Agree it does seem odd - I agree with the polite but firmly worded letter
    • aimeealicia11
    • By aimeealicia11 13th Oct 18, 4:38 PM
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    aimeealicia11
    Thank you for your replies.
    Would you be able to give me an idea of what I should say in a letter to them please?
    • HHarry
    • By HHarry 13th Oct 18, 4:45 PM
    • 460 Posts
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    HHarry
    Just for reference..

    I've just done my Mum's (which did have an IHT bill) - I got a letter from HMRC acknowledging the tax paid to date, which said that if we hadn't heard anything in 12 weeks we could consider our submission to be Ok.
    • Tom99
    • By Tom99 13th Oct 18, 4:45 PM
    • 3,119 Posts
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    Tom99
    Thank you for your replies.
    Would you be able to give me an idea of what I should say in a letter to them please?
    Originally posted by aimeealicia11

    Exactly what 'clearance' from HMRC are they waiting for, as you understand the term 'clearance' to normally apply to inheritance tax which is obviously not due in this case?
    Also even if some debts are not quite known why cannot an interim payment be made?
    • Yorkshireman99
    • By Yorkshireman99 13th Oct 18, 4:51 PM
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    Yorkshireman99
    Thank you for your replies.
    Would you be able to give me an idea of what I should say in a letter to them please?
    Originally posted by aimeealicia11
    Something like "It is approaching the end of the executor's year and I would appreciate knowing when the estate is likely to be distributed? Thanks in anticipation."
    • AnotherJoe
    • By AnotherJoe 13th Oct 18, 7:38 PM
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    AnotherJoe
    Something like "It is approaching the end of the executor's year and I would appreciate knowing when the estate is likely to be distributed? Thanks in anticipation."
    Originally posted by Yorkshireman99

    I would add a lot more rather than just give them the opportunity to stall.



    It is approaching the end of the executor's year and I believe you should now be able to to be distribute the estate.

    I have been told that you are waiting for HMRC clearance but this would not seem to be relevant in the case of an estate well under the IHT limit.
    In any case at worst, you should now be in a position to release funds with some withheld until you have checked that HMRC is satisfied, if you think this is necessary.

    So, i have two questions;
    1. Is there any reason you cannot send an interim payment immediately, and

    2. Please confirm how much tax if any you are withholding for the time being and the timescale to release those funds.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • Yorkshireman99
    • By Yorkshireman99 13th Oct 18, 7:59 PM
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    Yorkshireman99
    I would add a lot more rather than just give them the opportunity to stall.
    Originally posted by AnotherJoe
    Start with what I said and then follow it up 14 days later with something firmer. No point in antagonising them straight off. The objective is cooperation NOT confrontation.
    Last edited by Yorkshireman99; 13-10-2018 at 8:01 PM.
    • aimeealicia11
    • By aimeealicia11 13th Oct 18, 8:33 PM
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    aimeealicia11
    Thank you, you've been really helpful and I will follow your advice.
    • AnotherJoe
    • By AnotherJoe 14th Oct 18, 8:10 AM
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    AnotherJoe
    Do post back how it goes OP, always useful for future readers to see a conclusion
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • aimeealicia11
    • By aimeealicia11 14th Oct 18, 8:34 PM
    • 7 Posts
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    aimeealicia11
    Yes, I will update. I have a feeling I may need more advice before this is sorted.
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