Wills - How to deal with difficult assets?
Discussion
OK I have been nagged for years to write a will so suppose I better had.
Liquid assets are easy enough but what options are there for dealing with business and Buy To Let houses where the will beneficiaries will have no interest or skill set in running them long term? i.e. they will need to be managed to the end of their leases etc then wound up/sold.
How do people deal with such cases in their wills? Do they simply say: "Brother Jim-Bob to manage all this c**p and then sell it off and after which divvy the proceeds up as follows..." or do you appoint a solicitor as executor and task them to do it, albeit no doubt there will be some huge bill for dealing with it all?
What options are there?
Many thanks.
Liquid assets are easy enough but what options are there for dealing with business and Buy To Let houses where the will beneficiaries will have no interest or skill set in running them long term? i.e. they will need to be managed to the end of their leases etc then wound up/sold.
How do people deal with such cases in their wills? Do they simply say: "Brother Jim-Bob to manage all this c**p and then sell it off and after which divvy the proceeds up as follows..." or do you appoint a solicitor as executor and task them to do it, albeit no doubt there will be some huge bill for dealing with it all?
What options are there?
Many thanks.
Edited by anonymous-user on Sunday 13th January 18:22
Here's how it's done:
You leave the assets/btls to somebody who has no experience/desire to operate btls.
THEY make a choice:
a) take them to a proper managing agency who will fully manage them.
b) sell them (with or without tenants in place)
c) abandon them
Unless they have a screw loose they will opt for a) or b).
You leave the assets/btls to somebody who has no experience/desire to operate btls.
THEY make a choice:
a) take them to a proper managing agency who will fully manage them.
b) sell them (with or without tenants in place)
c) abandon them
Unless they have a screw loose they will opt for a) or b).
selmahoose said:
Here's how it's done:
You leave the assets/btls to somebody who has no experience/desire to operate btls.
THEY make a choice:
a) take them to a proper managing agency who will fully manage them.
b) sell them (with or without tenants in place)
c) abandon them
Unless they have a screw loose they will opt for a) or b).
Is c) even a choice?You leave the assets/btls to somebody who has no experience/desire to operate btls.
THEY make a choice:
a) take them to a proper managing agency who will fully manage them.
b) sell them (with or without tenants in place)
c) abandon them
Unless they have a screw loose they will opt for a) or b).
Don’t appoint any friend or relative as an executor without asking them first and getting their agreement after telling them what could be involved, especially the issue of having to pay the Inheritance Tax somehow before you get probate to have access to the assets to pay the IHT.
A particularly British Catch-22 ball ache
A particularly British Catch-22 ball ache
Noyzboy said:
Don’t appoint any friend or relative as an executor without asking them first and getting their agreement after telling them what could be involved, especially the issue of having to pay the Inheritance Tax somehow before you get probate to have access to the assets to pay the IHT.
A particularly British Catch-22 ball ache
That sounds awful. A particularly British Catch-22 ball ache
Noyzboy said:
Don’t appoint any friend or relative as an executor without asking them first and getting their agreement after telling them what could be involved, especially the issue of having to pay the Inheritance Tax somehow before you get probate to have access to the assets to pay the IHT.
A particularly British Catch-22 ball ache
You can frequently ask banks or investment institutions to pay IHT directly from the deceased’s bank account(s) or investment funds prior to probate, so this often isn’t the massive problem people think it is. They pay it directly to HMRC, so you just have to tell them the IHT reference number so that the payment is credited to your IHT account. And IHT on property can be paid in 10 yearly instalments until the property is sold, so likewise not such an enormous problem.A particularly British Catch-22 ball ache
MikeStroud said:
What I’m trying to get at is I don’t want to appoint a relative as executor as the complications of my assets mean it’ll be a pita to sort out.
Why do you feel selling a property or three will be such a pain? If it concerns you that much, sell them now and live off the proceeds instead?MikeStroud said:
Liquid assets are easy enough but what options are there for dealing with business and Buy To Let houses where the will beneficiaries will have no interest or skill set in running them long term? i.e. they will need to be managed to the end of their leases etc then wound up/sold.
What options are there?
It's an interesting question. I personally think it is unlikely you would find a solicitor who could give you a high quality solution at a reasonable price. After all, what you describe isn't their direct area of expertise.What options are there?
I would be inclined to consider talking with one or more of the potential beneficiaries. You would then have a much better idea whether one of them might be amenable to take on this work. You could then make a provision in your will specifically to recognise their efforts.
My approach, after discussion with the solicitor, was to keep the Will simple and appoint as joint executors: my brother, my nephew and niece and, if they're not prepared to act, the solicitor. The challenge is, over half my assets are 'complex' - eg private company investments which in some cases will be well-nigh impossible to realise in a prescribed timeframe. Brother, who will be the prime beneficiary, would I'm sure struggle while nephew and niece have more financial knowledge and might give it a shot. I suspect almost any professional executor would simply try a fire-sale of everything, though perhaps I should do more to identify a professional accountant I could trust - maybe my tax people as my closing tax return will be complex and they have a fair bit of background anyway? Truly I am trying to simplify my affairs, but that's a multi-year project!
The other tip from a good friend (with serious wealth though in 'straightforward' assets) is to document clearly where everything is, specimen statements, contact details, online access details etc. Then keep this prominently (eg with the Will) but securely and update annually. Sadly I've yet to get round to this - will add to this year's NY Resolution list........
The other tip from a good friend (with serious wealth though in 'straightforward' assets) is to document clearly where everything is, specimen statements, contact details, online access details etc. Then keep this prominently (eg with the Will) but securely and update annually. Sadly I've yet to get round to this - will add to this year's NY Resolution list........
millen said:
The other tip from a good friend (with serious wealth though in 'straightforward' assets) is to document clearly where everything is, specimen statements, contact details, online access details etc. Then keep this prominently (eg with the Will) but securely and update annually. Sadly I've yet to get round to this - will add to this year's NY Resolution list........
This, document everything. I'm administering my F-i-L estate (not officially an executor but acting on behalf of) and it's all straightforward cash ISAs and savings account, you'd think it would be easy but not knowing which accounts are active, which bonds haven't matured and even probably missing some accounts it's just been a slog through 15-20 accounts. He swore blind his house was in his kids names, nope just him and his wife - under IHT threshold thankfully and probate just applied for.I would much rather a solicitor deal with it, when my Mum went she used to be a legal sec so left her old firm as executor, I just got everything settled with virtually no effort a couple of months later, I must be 50-60 hours into this now, all death certs (all 5) are still out checking for dormant accounts.
MikeStroud said:
What I’m trying to get at is I don’t want to appoint a relative as executor as the complications of my assets mean it’ll be a pita to sort out.
What are my options for choosing an executor who can close down all my affairs from a position of knowledge?
Could you appoint a relative, but pay them for the pita?What are my options for choosing an executor who can close down all my affairs from a position of knowledge?
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