Probate value vs Estate Accounts - £40k difference?

[VeeReihenmotor6]

Hi,

I've never inheritated anything before and we have just had notifcation of a distribution on a set of simple accounts (3 bank accounts with cash in, no property) that has taken 2 years to get to this point.

The probate letter submitted to HMRC stated £102k however the estate accounts provided by the solicitor on distribution shows £60k. It has been split equally 4 ways as per the will and distributed.

What sort of reasons would generate a £40k difference? Is that normal? My wife is the beneficiary, can she ask the solicitor to explain and what sort of documentation should she be looking for?

Cheers

[Pro Bono]

You may have been mistaking the gross value of the estate and the net value. There could have been £102k's worth of assets but debts of £40k.

Do the estate accounts not make it clear?

[Jeremy-75qq8]

Ask for accounts.

I would have a punt on legal fees !

[Enut]

Jeremy-75qq8 said:

Ask for accounts.

I would have a punt on legal fees !

Sadly probably this, why has it taken two years to get to this point (other than solicitors dragging it out to justify fees obviously)?

[VeeReihenmotor6]

I have the accounts - they are simple. No property, the deceased uncle had 3 Bank accounts with cash in and that is all. No debts. Some fees for the solicitor (£4700) and stonemason. Funeral expenses. That bit is all clear and reasonable, i just can't work out why there is £60k of cash in the accounts but £102k submitted to probate.

I've researched some more and will ask for a copy of the IHT205 form that was submitted to probate.

Edited by VeeReihenmotor6 on Friday 16th December 12:18

[VeeReihenmotor6]

Enut said:

Sadly probably this, why has it taken two years to get to this point (other than solicitors dragging it out to justify fees obviously)?

This is why i am concerned - the executor is pretty laid back but is also in the same social circle as the solicitor. Not to say there is unprofessional play but have noted loads of money has been spent (2 storey extension, 3 new cars) by executor and his kids over the last 2 years. I know the uncle kept lots of cash in his house (house owned by the executor as part of a farm) as my wife's mum used to clean for him (she died and hence why my wife took her equal strip in the will).

[jeremyc]

Have you seen a copy of the will? It is possible that it wasn't an equal distribution of all assets amongst the beneficiaries (for example the Executor might have been left £42K with the remainder to be split four ways).

[VeeReihenmotor6]

yes I have the will - 4 equal distributions and that has been confirmed in the estate accounts too.

[Pieman68]

VeeReihenmotor6 said:

This is why i am concerned - the executor is pretty laid back but is also in the same social circle as the solicitor. Not to say there is unprofessional play but have noted loads of money has been spent (2 storey extension, 3 new cars) by executor and his kids over the last 2 years. I know the uncle kept lots of cash in his house (house owned by the executor as part of a farm) as my wife's mum used to clean for him (she died and hence why my wife took her equal strip in the will).

So you said there was no property to the estate - I presume that you mean an extension to the executor's property showing additional spending on their part (along with the cars)

I would think that they would have to be very careful to be able to show where the funds have come from, as if they're spending from the estate and then splitting a smaller amount that would suggest some very dodgy ground

[johnao]

VeeReihenmotor6 said:

Enut said:

Sadly probably this, why has it taken two years to get to this point (other than solicitors dragging it out to justify fees obviously)?

This is why i am concerned - the executor is pretty laid back but is also in the same social circle as the solicitor. Not to say there is unprofessional play but have noted loads of money has been spent (2 storey extension, 3 new cars) by executor and his kids over the last 2 years. I know the uncle kept lots of cash in his house (house owned by the executor as part of a farm) as my wife's mum used to clean for him (she died and hence why my wife took her equal strip in the will).

Could the £40,000 be Potentially Exempt Gifts (PETs)? Gifts made within seven years of death.