Advice for a beneficiary please

[emma123]

Hi everyone
could someone offer me some advice please?
Mum passed away Feb 2020 (No will) there was a previous Wil be she ripped it up so died without one.
Dad passed away Jan 2005
4 siblings including myself.

elder sibling applied for probate February last year without consulting myself or other siblings, told us after it was granted.

My elder sibling loves the control and is very vindictive and spiteful (last bit of power) so we have let him go ahead as we had no option, probate granted.

The solicitor acting for him hasn’t written any sort of introduction letter. Solicitor helping with administering but is not the person of interest/administrator, We don’t know who it is.
Elder sibling calls once every three months but no real information given, just the he’s dealing with it. Nothings moved forward according to him.
Not worried about brother ripping us off or anything because he wouldn’t but we are not close what so ever. Just want to know what’s going on and information isn’t exactly forthcoming.
Do Beneficiaries have any rights?
Can we see full accounts?
What are the Inheritance tax implications?
family home worth approximately £750/800k
plus £100k in savings
no debts
home abroad which I don’t think has been reported to probate! I’m worried I might get a future tax bill on it.

Family Home has not been put on the market and might not be any time soon. Because he keeps making excuse after excuse why can’t call estate agents, I and other sibling have offered to do this but offer refused.
requested accounts and inventory but was refused stating your not seeing anything. Id rather not get a solicitor involved but may have to due to cost.
Thank you

[Sam101]

What is the value of the house abroad, as help cannot be based on only some assets, it needs ALL worldwide assets

[emma123]

Maybe 3/400€ but cannot be certain.

[Sam101]

So, around £300,000, in total approx £1,200,000 and if any gifting was made in the last 7 years i excess of the gifting allowances, then possibly more.

There are inheritance tax allowances of £325,000 each and residential allowances of £175,000 each, leaving approximately £200,000 on which to pay tax at 40% and arrangements will need to be made by the executors to pay the tax before distribution to any beneficiaries.

Unfortunately beneficiaries have no rights at all to be informed of anything to do with the estate, although the executor can give out information if they wish.

As long as you are satisfied that you will eventually receive your inheritance, then just relax and let it happen. Asking in a friendly way may bring forth some details of how it is progressing, but at least there is a solicitor helping your elder sibling out.

[emma123]

Thank you Sam101 for the response

i thought I could request an inventory and accounts? I’m currently arranging my own Will hence the reason I wanted a few general details.

[Sam101]

You are welcome
It may be that you will have an estate that would be liable to inheritance tax if you do not take action in good time. There are a number of options to consider to reduce the potential liability and good research will pay dividends.

You can always come back later and ask whatever question you may have about ways to construct your own Will and there are a number of members on this forum that would be able to help you.

[emma123]

Thanks Sam,
I have found out that the property abroad wasn’t put on the original probate forms or declared to hmrc, when I enquired as to why the solicitor was taken aback and said it should’ve been declared and will need to be added! Due to this I have lost trust in my older brother, as the house abroad is now having to be added to the estate due to me finding out that he tried to hide this from UK authorities. will it get sold as part of the estate? Due to there not being a will?

[Sam101]

It all forms part of the assets to be shared between the beneficiaries. Was the solicitor an executor, or just helping out. If he was acting, then he can get into trouble if he knew about this extra property, but I expect he was not advised.

Beware of the rather 'bendy' way that exist in the Spanish system of lawyers. Many years ago I also had problems with lawyers who were acting for both sides and did not always follow the strict interpretation of rules. The reason I mention this is that you need to make sure that a TRUE valuation is obtained for that property. If it is lower than the actual value, then your brother would benefit and its to his advantage to have a low value accepted by the Revenue. Is the property presently occupied or rented out, or what is the situation.

Ask the solicitor to take this into account and insist on a professional valuation. It may cost a little more but if valued well below, the beneficiaries may have to pay themselves at a later date and you don't want that to happen.

As more inheritance tax will be payable, possibly with fines if the revenue deem the concealment to be fraudulent, you do need to ensure that the taxes are all paid before distribution.

Big question, are you sure your older brother will be fair with you and splitting the estate as I understand that he alone has letters of administration to deal with it.? If you are unsure and feel you may be taken advantage of, there may be ways to ensure this does not happen but would possibly upset your siblings.

[emma123]

Hi,
property abroad was definitely not added at time of probate! Solicitor is not the executor/admin, they are doing all the legal work at great cost. Solicitor didn’t know or was told family took over the property which wasn’t true! When I asked why it was not on the original probate form I was told by my brother it’s incorrect( that’s all he says) the accounts are incorrect! Asked again why it wasn’t included and now says I’m not communicating anymore write to the solicitor!! Clearly been caught out

[Sam101]

An important point Emma123, if the Probate goes through and the estate is distributed, then the beneficiaries could be called upon to return all or part of their inheritance if the executor has been fraudulent. Ultimately it is his legal responsibility as having received the Letters of Administration and fraud is very seriously looked upon.

Just make sure you make your brother aware. The solicitor may also be in difficulties if he is known to conceal matters of Probate.

[emma123]

So I requested a set of accounts first told no, then received them but am now being told the accounts were incorrect and no further accounts sent! Driving me mad lol I think he is saying that to cover up the fact the house wasn’t part of probate initially when it should’ve been. There is also missing valuables and a large amount of cash missing as in paper cash not bank cash. So I’ll have to forward the incorrect accounts to the solicitor and check if they are correct or not

[Sam101]

Nothing more I can suggest. The Probate office are the ones who should be told that the information they have been given is not correct and as a beneficiary you feel it is your duty to advise them. The ball is in your court.

[emma123]

Thanks Sam, your replies are appreciated.
The solicitor doing the legal work is saying she presumed the house had be taken ( which is BS) because solicitors only act on instruction, she is covering up the situation.

I spoke to two different solicitors and both said exactly the same thing, get him kicked off