Asset Search

[BlakSheep]

My parent died in July without leaving a Will and my siblings and me are the beneficaries. I opted to appoint a legal firm (probate specialists) to administer and apply for letters of admin. A couple of the siblings have been actively blocking progress and to undermined me as the Personal Rep.

I didnt understand why until I requested seven years worth of bank statements and uncovered significant monies being "gifted"(more than is allowed under IHT) to them, which they have not declared.

My Late parent kept everything but only after working backwards did I relise there was obfuscation - missing presumed taken bank statements, cheque book receipts and deleted emails . I have now requested copies of 100s of cheques to try and cross-ref with dup;icate bank statements.

[atticus]

How can we help?

[BlakSheep]

How can we help?

If for sake of argument there are four siblings and only two received hig-value cash gifts over the £3k within seven years of death. What is the liability of those siblings who received nothing. Or is the IHT liability shared equally? Not to mention other assets removed and not declared. What sanction if any is there for non-declaration of gifts? Thank you.

[echat11]

If for sake of argument there are four siblings and only two received hig-value cash gifts over the £3k within seven years of death. What is the liability of those siblings who received nothing. Or is the IHT liability shared equally? Not to mention other assets removed and not declared. What sanction if any is there for non-declaration of gifts? Thank you.

Shouldn't the law firm do all this for you? No doubt they will get paid.

What you do is 'reconcile'all the assets in a spreadsheet give it to the law firm, where you believe something is amiss, tell them.

Spreadsheet will contain i.e. who received what etc

No doubt you might be able to make claims for the cash gifts you missed out on (speculating), although it won't be 'popular'.

[BlakSheep]

My understanding is the solicitor has written to all beneficiaries and asked the question/declare if any gifts over and above the permitted £3k. If they choose not to reveal then it requires further interrogation through bank statements and cheque receipts. All made more challenging when these have been removed or hidden?

[atticus]

It is the estate that is liable to IHT. After the estate has paid tax, the remainder is available for distribution (after payment of debts).

[echat11]

My understanding is the solicitor has written to all beneficiaries and asked the question/declare if any gifts over and above the permitted £3k. If they choose not to reveal then it requires further interrogation through bank statements and cheque receipts. All made more challenging when these have been removed or hidden?

Your on the right track, keep gathering as much info as possible, create a spreadsheet etc

[Pezza54]

What is the approximate net value of the estate?

[BlakSheep]

What is the approximate net value of the estate?

Approx £600k

[BlakSheep]

Your on the right track, keep gathering as much info as possible, create a spreadsheet etc

The beneficiary who received the most in cash gifts also presented a hand written document they said was Will (not witnessed or with a credible signature or date). In the doc they were named as the Executor who would pay funeral costs and receive the balance of the bank account, ISA and pension. The proceeds from the sale of the house would be shared between siblings. When it was pointed out the "Will" was not valid, there has been a determined effort to thwart moving to probate. It is understood they may have entered a caveat inferring that I am not fit and proper person to be a PR. Basically they want a bigger piece share than what is determined under the law of intestate. It is quite stressful and challenging. As my auditor mate would say you have to follow the money to understand the motive for a behaviour.

[Pezza54]

Is there a property included in the estate?
Was your other parent married or in a civil relationship with the deceased?

[BlakSheep]

Is there a property included in the estate?
Was your other parent married or in a civil relationship with the deceased?

- Yes, property; and
- No, divorced (no civil partner).

[Pezza54]

Thanks, so there is IHT to pay.
The solicitor has written to beneficiaries asking them to declare if they received any gifts in the last 7 years of their parents life
If a recipient of such a gift fails to declare it, including the gift value so IHT can be calculated, and HMRC finds out, they may be personally liable for any additional IHT due to the gift, plus possibly a penalty imposed by HMRC

Please see the article at
http://www.hughjames.com/blog/non-di...time-gifts-and inheritance-tax-penalties

[BlakSheep]

According to the article you shared HMRC can go back 14 years?

[Pezza54]

You should ask the solicitor whether your siblings should be made aware of possible repercussions of non disclosure