probate and will question
Discussion
davek_964 said:
Bet he didn't.
As I already said, HMRC told me that probate was only required if IHT was due, and the threshold for that is well into 6 figures (£350k or something from memory?).
The estate I was dealing with was around the 6 figure threshold, and - as I said - I did not obtain or require probate.
ETA : In response to the original question though, IF you do require probate my understanding was that the money could not be distributed to beneficiaries until probate was granted and any bills (especially IHT) were paid. If you are executor and beneficiary, then I'd expect you are "executor" until probate is complete / bills are paid and then you become "beneficiary". If you actually have the money already and start spending it I don't see how they'd know - but either way you obviously have to pay what's due when it's due.
Fairly sure HMRC advised you incorrectly thenAs I already said, HMRC told me that probate was only required if IHT was due, and the threshold for that is well into 6 figures (£350k or something from memory?).
The estate I was dealing with was around the 6 figure threshold, and - as I said - I did not obtain or require probate.
ETA : In response to the original question though, IF you do require probate my understanding was that the money could not be distributed to beneficiaries until probate was granted and any bills (especially IHT) were paid. If you are executor and beneficiary, then I'd expect you are "executor" until probate is complete / bills are paid and then you become "beneficiary". If you actually have the money already and start spending it I don't see how they'd know - but either way you obviously have to pay what's due when it's due.
Edited by davek_964 on Friday 13th March 12:17
Sheepshanks said:
Why are you concerned though? Does people committing minor motoring law transgressions bother you?
It's absolutely standard practice, but very dodgy, for families to divi out the dosh amongst themselves, telling as few people as possible, even when there are several interested parties, never mind just one.
What does catch these people out quite frequently is for the DWP to come back 6-9 months later and ask for a hefty sum as it turns out the deceased was getting benefits, particularly pension credit, which they weren't entitled to.
Well, it's not something I just happen to be wondering about while daydreaming, it's something that's affecting me. Would if thought that was obvious, but anyway....It's absolutely standard practice, but very dodgy, for families to divi out the dosh amongst themselves, telling as few people as possible, even when there are several interested parties, never mind just one.
What does catch these people out quite frequently is for the DWP to come back 6-9 months later and ask for a hefty sum as it turns out the deceased was getting benefits, particularly pension credit, which they weren't entitled to.
Not sure how something can be standard practice and very dodgy at the same time, maybe I'm just naive
Craigybaby69 said:
thanks claudia for your reply.
I know of an example though where it is possible for the executor to have access to assets, namely a property was sold before the deceased passed away but the sale only completed after the death of the owner. As such, and as the deceaseds bank accounts were closed, the solicitor had no option but to pay the proceeds into the executor/beneficiaries account, before probate has been obtained.
Perhaps the sale being already agreed and contracts done before death means the probate issue doesn't arise, although the way such things work you'd expect something like that to cause a major problem.I know of an example though where it is possible for the executor to have access to assets, namely a property was sold before the deceased passed away but the sale only completed after the death of the owner. As such, and as the deceaseds bank accounts were closed, the solicitor had no option but to pay the proceeds into the executor/beneficiaries account, before probate has been obtained.
One we were involved in (sale of wife's Godfather's house) was held up for some time waiting for probate to be granted, although the whole process took place after he died.
Craigybaby69 said:
davek_964 said:
Bet he didn't.
As I already said, HMRC told me that probate was only required if IHT was due, and the threshold for that is well into 6 figures (£350k or something from memory?).
The estate I was dealing with was around the 6 figure threshold, and - as I said - I did not obtain or require probate.
ETA : In response to the original question though, IF you do require probate my understanding was that the money could not be distributed to beneficiaries until probate was granted and any bills (especially IHT) were paid. If you are executor and beneficiary, then I'd expect you are "executor" until probate is complete / bills are paid and then you become "beneficiary". If you actually have the money already and start spending it I don't see how they'd know - but either way you obviously have to pay what's due when it's due.
Fairly sure HMRC advised you incorrectly thenAs I already said, HMRC told me that probate was only required if IHT was due, and the threshold for that is well into 6 figures (£350k or something from memory?).
The estate I was dealing with was around the 6 figure threshold, and - as I said - I did not obtain or require probate.
ETA : In response to the original question though, IF you do require probate my understanding was that the money could not be distributed to beneficiaries until probate was granted and any bills (especially IHT) were paid. If you are executor and beneficiary, then I'd expect you are "executor" until probate is complete / bills are paid and then you become "beneficiary". If you actually have the money already and start spending it I don't see how they'd know - but either way you obviously have to pay what's due when it's due.
Edited by davek_964 on Friday 13th March 12:17
I find it unlikely that you are right, and HMRC and a bunch of solicitors who's main job is to deal with deceased estates got it wrong.
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