Probate

[sybella]

A friend insists on do it yourself probate. 4 National Charities share half of residue. I think she should protect herself from any possibility of mal administration by liaising with at least one charity about how to proceed with sale of property which has 2 acres of possible future development value. She is reluctant. Also I have said she should notify thm immediately of their interest in the estate. What say you?

[boxtops]

I don't understand - how can she do it herself, she won't be here....? She needs an executor.

[factor-fiction]

Are you the executor? If not, I'd leave it to her and her executors

[black_cat51]

it's up to the executors to deal with the estate - not the beneficiaries

[factor-fiction]

Maybe we have misunderstood- maybe the friend is the executor and the subject of the estate has already died

[dzug2]

There is no obligation on her to inform the charities until she sends them final cheque. It can be wise to do so though

Charities can have the habit of turning awkward - particularly when they are residuary beneficiaries - by questioning everything the executor has done and saying you could have done that better we want more money. If you involve them early it avoids that - but it does have them interfering in what you do and maybe adversely affecting the other beneficiaries.

My own inclination would be not to inform them and to tell them to get lost if they later turn awkward. At least that's what I'd like to do. Whether I would in reality is another matter.

[Peter Pedant]

The charity since it is other peoples money are a bit hot on getting the right amount as otherwise they are in breach of trust - in other words they cant say, well we have 90% of the correct amount that is OK for us.

Your friend presumably is doing probate herself for someone who is er dead.

Taxation IHT of half and half wills - half to charity and half to grasping relatives - is somewhat difficult. The charity bit is free - but the relatives then bear that tax burden - as well as their own by a process known as "grossing-up."

She might well say yeah I know sll that.... in which case atta-girl otherwise she needs help.

[Peter Pedant]

Exactly this question was brilliantly asked by er well me actually

http://www.theanswerbank.co.uk/Law/Civil/Question809547.html

and very very brilliantly answered by Barmaid who is a chancery QC = knows about such things.

I think there is even alink to the relevant HMRC tax calculation
which she ( your fren' ) can sweat over if she wishes

[Peter Pedant]

The HMRC example calculaations are here

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/charity-examples.htm

[dzug2]

That would seem to imply that if someone makes a will leaving a few mementoes (worth a few pounds in a second hand shop) to a friend or relative and the residue of his estate (well over the NRB) to charity then that person could be up for several £K or even tens of K in IHT despite having received effectively nothing from the estate.

Or am I misunderstanding? Or missed something?

And if that is actually due who would ask for it and when?

[factor-fiction]

Good question, dzug. I'm sure though that the person who received a small memento worth say £10 couldn't be expected to pay an IHT tax bill of say £100000. But if teh charity is exempt I don't know who would pay it. Until i read what PP has said I always thought any IHT had to be paid before the estate was distributed

[dzug2]

I thought that IHT had to be paid before probate was granted - or at least some of it

Looking at barmaid's reply more carefully it appears to be about inheritance of residue rather than specific bequests - which the memento would be