Intestacy

[Harpz]

Hi, my father has recently passed away without leaving a will .His estate value is approximately £448k he has a surviving spouse and 3 sons all over 18 . I understand he died intestate so rules of intestacy would apply. I as his son wish to get grant of letters of admiration all family members are fine with however I was considering doing DIY probate but because my father had everything in his sole name and not joint name with my mother I am considering doing the probate and iht with a solicitor for a fixed fee then closing all accounts and distributing all funds accordingly. The property is worth around £128k and cash of around £320k am I correct in thinking following intestacy rules my mother would get £128k property + £122k cash ie first £250k then of the remaining £198k she would get half that leaving the 3 sons approximately £33k each??? Pls clarify thanks.

[lawboy65]

UK Intestacy rules would mean the spouse would receive the first £270K of the whole estate plus all personal belongings and chattels. They would also get half of what was remaining. The other half would then be split between the deceased’s children.* There will of course be a tax liability as well

[Harpz]

I thought it was the first £250k as my father died in January and the £270k rule comes into effect as of April and what would be the tax implications pls help

[Harpz]

Hi, my father has recently passed away without leaving a will .His estate value is approximately £448k he has a surviving spouse and 3 sons all over 18 . I understand he died intestate so rules of intestacy would apply. I as his son wish to get grant of letters of admiration all family members are fine with however I was considering doing DIY probate but because my father had everything in his sole name and not joint name with my mother I am considering doing the probate and iht with a solicitor for a fixed fee then closing all accounts and distributing all funds accordingly. The property is worth around £128k and cash of around £320k am I correct in thinking following intestacy rules my mother would get £128k property + £122k cash ie first £250k then of the remaining £198k she would get half that leaving the 3 sons approximately £33k each??? Pls clarify thanks.

Hi thankyou for your reply what be the tax implications pls

[lawboy65]

There are a few key steps an administrator must take to assess the deceased’s estate for Inheritance Tax* ( IHT) purposes.

1. Value the deceased’s total assets. You must include all assets the deceased owned, or owned a share of, at their death. Care should be taken in identifying any assets located overseas as their value must also be included.
2. You should value all gifts (money, property, assets, etc.) the deceased made in the seven years prior to death that were not exempt – this will include potentially exempt transfers (PETs) made in that period. You are expected to make reasonable efforts to identify all gifts made by the deceased in the seven years before their death. Bank statements and personal documents should be examined for possible gifts and you should make reasonable enquiries of relatives.
3. Add all the values in step 1 and 2 together to get the total value of assets and gifts.
4. Deduct any debts and liabilities. You can reduce the total value of the deceased’s assets and gifts by taking off any outstanding bills, debts or mortgages at the date of death. You can also deduct funeral expenses. Note your valuation of the estate, that is, the value of all assets and gifts minus all debts and liabilities. Keep evidence of valuations and receipts.

Decide whether or not IHT is due on the estate once any exemptions or reliefs have been factored in. Complete the correct IHT forms and pay any IHT due.
This can be quite daunting for an unqualified person, so although you did mention you will be administering the estate yourself, it may be prudent with such a large amount of money to employ a solicitor, so all details are completed correctly.*
There may be no tax liability at all, however, the forms can be quite complicated and failure to declare may have consequences after the event.
*