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Bit of a crappy situation

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    Bit of a crappy situation

    My mother unexpectedly passed away during the holidays (peacefully in her sleep as far as we know), which is rather a bummer.

    Amongst all the normal stuff surrounding a death in the family, I am executor and there's a potentially annoying snag regarding her estate:

    My grandfather (father's father) died last year and left his estate to my mother. However this has not been resolved at the time of mother's death, she never received it.

    Mum's estate is already large enough to attract some tax which means that ALL of grandfather's estate, after it is taxed and disbursed, would be taxed again.
    It might seem materialistic to be thinking of this before the funeral is even done but both my parents and grandfather worked hard to set up their affairs to minimise inheritance tax so would be gutted to find that grandfather's estate basically gets taxed twice, and it could end up costing ~£100k which would be firmly against their wishes and is just a bit stressful with everything else to sort out. Ironically, mum had been planning to set up a 'deed of variation' once it was all sorted.

    So this might be better in the professional forums but does anyone have any useful knowledge? We will be engaging an advisor but I'm the kind of person who likes to know these things up front. I assume I cannot for instance, as mum's executor issue a deed of variation on her behalf? I know her advisor was aware she wished to do this.

    Many thanks.
    Originally posted by MaryPoppins
    I'd still not breastfeed a nazi
    Originally posted by vetran
    Urine is quite nourishing

    #2
    sorry about your mum

    I was executor for my mum a few years ago.

    I had to submit an estimate to the tax man and they decided on tax etc. I then resolved her estate over the next year with some bits being more and some less.

    They used my estimate and profiled it I guess, I never heard from them again.
    If a large wodge had turned up later I reckon it would have gone untaxed.
    I didn't use a solicitor, saved the estate 23k

    Doesn't answer your question specifically but their is lots of good ,free advice out there.
    (\__/)
    (>'.'<)
    ("")("") Born to Drink. Forced to Work

    Comment


      #3
      Sorry to hear that

      Can't help with your specific problem, but am currently going through the process with my mother's estate - I know my father's allowance (he died over 20 years ago) effectively gets passed on, so it doesn't get taxed twice, but I think that's only applicable with married couples. From my very limited knowledge, it sounds like you're stuffed - her share of grandfather's estate effectively becomes her estate. But well worth getting an expert opinion. Anything less technical I can help with, then shout - have just got to the point of being ready to apply for probate (hoping to dump stuff on solicitor tomorrow).

      Comment


        #4
        Sorry to hear that too.

        Originally posted by mudskipper View Post
        From my very limited knowledge, it sounds like you're stuffed - her share of grandfather's estate effectively becomes her estate.
        Unfortunately, this is also my understanding.
        However, I'm sure an advisor will know if there is any work around.

        Good luck.
        The Chunt of Chunts.

        Comment


          #5
          To add to what EO said about DIY - we had a chat with a solicitor to make sure we were barking up the right tree (very useful, about £200+VAT) and she will prepare the documents for probate etc (another £600+VAT or so). We've done the legwork - so solicitor should be a grand or thereabouts; worth it IMO.

          Comment


            #6
            fyi

            another interesting thing (as executor), which I believe is common

            the beneficiaries were disbursed (paid) in two tranches. One when the tax man had ok'd the estate which was about six weeks
            the second was after the main resolution of ins, outs, debts etc, shares, sales which was a year or so later
            (\__/)
            (>'.'<)
            ("")("") Born to Drink. Forced to Work

            Comment


              #7
              As long as all beneficiaries left worse off by the change of a will agree to the change then you should be ok

              https://www.gov.uk/government/upload...73615/IOV2.pdf
              Originally posted by Stevie Wonder Boy
              I can't see any way to do it can you please advise?

              I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

              Comment


                #8
                Originally posted by d000hg View Post
                My mother unexpectedly passed away during the holidays (peacefully in her sleep as far as we know), which is rather a bummer.

                Amongst all the normal stuff surrounding a death in the family, I am executor and there's a potentially annoying snag regarding her estate:

                My grandfather (father's father) died last year and left his estate to my mother. However this has not been resolved at the time of mother's death, she never received it.

                Mum's estate is already large enough to attract some tax which means that ALL of grandfather's estate, after it is taxed and disbursed, would be taxed again.
                It might seem materialistic to be thinking of this before the funeral is even done but both my parents and grandfather worked hard to set up their affairs to minimise inheritance tax so would be gutted to find that grandfather's estate basically gets taxed twice, and it could end up costing ~£100k which would be firmly against their wishes and is just a bit stressful with everything else to sort out. Ironically, mum had been planning to set up a 'deed of variation' once it was all sorted.

                So this might be better in the professional forums but does anyone have any useful knowledge? We will be engaging an advisor but I'm the kind of person who likes to know these things up front. I assume I cannot for instance, as mum's executor issue a deed of variation on her behalf? I know her advisor was aware she wished to do this.

                Many thanks.
                I'm not an expert or a lawyer, but based on this
                Probate and estate administration FAQs | Law Donut

                It would appear that the benefit from your grandfathers estate passes to you, so it never forms part of your mothers estate so would not be taxed as such.
                "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

                Comment


                  #9
                  Originally posted by DaveB View Post
                  I'm not an expert or a lawyer, but based on this
                  Probate and estate administration FAQs | Law Donut

                  It would appear that the benefit from your grandfathers estate passes to you, so it never forms part of your mothers estate so would not be taxed as such.
                  Interesting to know, if that is the case
                  The Chunt of Chunts.

                  Comment


                    #10
                    Originally posted by DaveB View Post
                    I'm not an expert or a lawyer, but based on this
                    Probate and estate administration FAQs | Law Donut

                    It would appear that the benefit from your grandfathers estate passes to you, so it never forms part of your mothers estate so would not be taxed as such.
                    Read the small print

                    If the potential beneficiary was not a child of the deceased, or had no surviving children when the deceased died, then they normally lose their entitlement to inherit.
                    It was her husbands father, I think that adds complexity
                    Originally posted by Stevie Wonder Boy
                    I can't see any way to do it can you please advise?

                    I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

                    Comment

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