Administering an estate

[Welsh18]

Hi there,
I'm administering my late mothers estate and about to be granted probate. I'm not using a solicitor for probate or inheritance tax. I've created a spread sheet to document the estate accounts appropriately & will ensure any beneficiaries have a copy & ask them to sign a master copy ststingvthryvare japoy with the accounting. Am I right in thinking once the house sale proceeds are in, I wait ) months before making any distributions? Would I need to open a separate bank account soley for the purpose of the funds to distribute?
Any advice would be very greatly appreciated.

[charitynjw]

Re: Administering an estate

Hi Welsh18, welcome to LB.

It was all going so well until

...... & ask them to sign a master copy ststingvthryvare japoy with the accounting

[Welsh18]

Re: Administering an estate

Oh Christ that's speed typing & not paying attention for you! So what I was trying to say was....'stating they are happy with the accounting' .....

- - - Updated - - -

I would also add that I'm missing the '6' in the 'do I wait 6 months before distributing the funds to the beneficiaries' :-)

[charitynjw]

Re: Administering an estate

One thing I would say is make sure IHT is sorted.
We are still trying to get HMRC to give the ok (on a final figure) 18 months after the demise.
Everything else has been calculated & agreed; HMRC are the only spanner in the works.

[Welsh18]

Re: Administering an estate

Thanks for that, there is no IHT to pay as the net figure once debt against the property has been settled is under £300,000. I hope it won't take them 18 months to agree that but you never know with HRMC!

[seduraed]

Re: Administering an estate

I would set up an executor account. All payments two or from the estate to go through it.

[Peridot]

Re: Administering an estate

Hi Welsh18,

The six months you mention I suspect is in relation to any likely claims against the estate? If this is the case you should wait for 6 months from the date of the Grant of Probate as this is the length of time that a claim should be brought against the estate. If there is a possibility someone could make a claim or you are aware of any potential beneficiaries that may make a claim then I would advise waiting the 6 months before distributing the estate. If a claim is made it can be very difficult to claw back money from beneficiaries but if you have waited the 6 months you can't be held responsible (provided you don't suspect there may be a potential claim).

You will of course need to wait for clearance from HMRC that all necessary tax including income tax and IHT (although I know this was not payable) have been settled, before distributing the estate to the beneficiaries. As you say hopefully not 18 months for them to give you the ok but they can be somewhat slow! I would definitely wait for clearance from HMRC before distributing the estate, even if you do not wait the 6mths or place notices, which I mention below.

Are you certain all debts have been settled and there are not likely to be any further debts, credit card, storecard, loan payments etc that you were not aware of? If you are not sure, I would recommend taking out what is known as a section 27 notice in the London Gazette and the person who died's local newspaper. Any creditors would then contact you as the executor if they are owed anything. The notice has to be in both papers for 2 months to provide you with protection from any claim in the future.

A similar situation to any claim against the estate with you potentially being personally liable if you are unable to claw back any sum from the beneficiaries to pay a creditor. Of course if you knew the person's assets and their estate well enough then this may not be necessary but it is worth considering. Here is a link that may shed some light and help you make a decision: https://www.thegazette.co.uk/wills-a...te/content/299 and another on how to place the notice if you feel it is necessary: https://www.thegazette.co.uk/wills-a...estates-notice
This information is only in relation to the London Gazette, it would be necessary to place a notice in the person's local newspaper in addition if you think notices are necessary.

I've probably flagged more issues for you now sorry, but better to ensure you are protected as far as you can be or for you to be aware to make a judgment, whether you need to consider these other optional steps. It is probably worth opening a separate account for the estate monies to be placed in pending distribution it is a lot easier to keep everything separate and tidy should there be any queries from the beneficiaries concerning estate assets and liabilities.

Hopefully you will receive clearance quickly and you can move forward with finalising the estate.

[des8]

Re: Administering an estate

If you are concerned about the consequences of making an error, which could include legal costs you might wish to consider taking out an Executors Liability policy.
Premium costs are claimable from the estate as a legitimate executor's legal expense

[Welsh18]

Re: Administering an estate

Thankyou so much, all information is very welcome. I'm pretty sure I have all the debts assessed so don't feel the need for the ad in the paper although very useful to be aware of as we go along. The six months comes off the back of my mothers partner who I think may want to make a further claim under the inheritance act as he currently feels the 10% bequeathed is 'not sufficient' I think he may be difficult & wait 5 months/3 weeks before submitting a claim although i question his affordability to do so, you never know so better be safe than sorry!
A quick question around distributing the estate...can I make interim payments prior to HMRC confirming no IHT to pay? Or is it wise to wait until I have the final confirmation from them?
'many thanks in advance

[Peridot]

Re: Administering an estate

Hi again,
Interim payments are not a bad way to go forward as keeps everone a bit more content. However do ensure that there are either sufficient funds retained to foot any unexpected tax, costs etc. I would also obtain an indemnity from the beneficiaries confirming that if needed they accept they may have to return funds if there are any tax issues, just to cover yourself.
Here if needed.