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[Finance] Probate question



E

essbee1

Well-known member
Jun 25, 2014
4,722
We recently got probate for my Dad who passed away a while ago.
The Govt. probate certificate shows a gross worth figure for the estate and a net worth figure.
(It ain't much by the way :))

Does anyone know the difference between the two?
I know inheritance tax only kicks in when both folks are no longer here.
So, anyone know roughly what is the situation with any tax payable now or when it's due or
at what rate.

Any help would be great. Ta very much.
 






M

mwrpoole

Well-known member
Sep 10, 2010
1,519
Sevenoaks
I believe the gross figure excludes any expenses. The net figure is after the expenses, typically funeral costs but sometimes paying off a mortgage or loans.
 


P

portslade seagull

Well-known member
Jul 19, 2003
17,944
portslade
Hmmm got this issue with my dad who recently passed. Checking the gov.uk site you don't pay IHT until it exceeds £325k. Problem for us is probate is required b4 his old insurances can payout. We are seeing a solicitor next week as we don't really understand it all
 


Westdene Seagull

Westdene Seagull

aka Cap'n Carl Firecrotch
NSC Patron
Oct 27, 2003
21,526
The arse end of Hangleton
Paging @Henfield One

EDIT - one thing I suggest you do is take a number of copies of the will. You will be asked to send the original to get probate and they keep it. It's a pain when other organisations such as banks, insurance companies and solicitors if selling property ask for it and you don't have a copy.
 
Last edited:




E

essbee1

Well-known member
Jun 25, 2014
4,722
portslade seagull said:
Hmmm got this issue with my dad who recently passed. Checking the gov.uk site you don't pay IHT until it exceeds £325k. Problem for us is probate is required b4 his old insurances can payout. We are seeing a solicitor next week as we don't really understand it all
Click to expand...
All the best with this PS. The worst thing is you're constantly reminded of your departed.
 


N

nickbrighton

Well-known member
Feb 19, 2016
2,127
having been executor for both my Dad and Step dad the advice I would give is get someone else to do it! I used Co-op legal services, and while it sounds like "giving money away" 3 times now, over 3 years after I thought it was all finished with, things have come up. The latest being my nephew buying his house, using his inheritance, as deposit The Mortgage company needed details of where,when, and what the money he inherited came from, wanted official documentation , etc.

I had an instance where 4 years after selling my step dads house, inland revenue suddenly thought as executor i owed capital gains tax on the property.

It would have been a right ball ache had I not been able to simply refer back to the Co-op.
 


Thunder Bolt

Thunder Bolt

Silly old bat
Aug 18, 2009
67,867
Beside the seaside, beside the sea
portslade seagull said:
Hmmm got this issue with my dad who recently passed. Checking the gov.uk site you don't pay IHT until it exceeds £325k. Problem for us is probate is required b4 his old insurances can payout. We are seeing a solicitor next week as we don't really understand it all
Click to expand...
Didn’t the insurance policy have a beneficiary or has that person deceased too?
My Dad had two policies, Prudential and Coop. The Pru were fantastic, straightforward, the Coop a bit more complicated.
 




R

rippleman

Well-known member
Oct 18, 2011
4,988
portslade seagull said:
Hmmm got this issue with my dad who recently passed. Checking the gov.uk site you don't pay IHT until it exceeds £325k. Problem for us is probate is required b4 his old insurances can payout. We are seeing a solicitor next week as we don't really understand it all
Click to expand...
Or £500K if the deceased owned their own property.

Or £1m if this was the second death of a married / civil partnership couple and on the first death everything, including the main residence, was left to the surviving spouse. (Where the first deceased leaves everything to the surviving spouse there is no IHT on first death and the nil rate band and the residence nil rate band pass to the survivor)
 


dazzer6666

dazzer6666

Well-known member
NSC Patron
Mar 27, 2013
55,513
Burgess Hill
essbee1 said:
We recently got probate for my Dad who passed away a while ago.
The Govt. probate certificate shows a gross worth figure for the estate and a net worth figure.
(It ain't much by the way :))

Does anyone know the difference between the two?
I know inheritance tax only kicks in when both folks are no longer here.
So, anyone know roughly what is the situation with any tax payable now or when it's due or
at what rate.

Any help would be great. Ta very much.
Click to expand...
In probate terms ‘net‘ is the value of the estate less any alllowable deductions such as fees, debts etc off the ‘gross‘ figure.
 


The Maharajah of Sydney

The Maharajah of Sydney

Well-known member
Jul 7, 2003
1,414
Sydney .
nickbrighton said:
having been executor for both my Dad and Step dad the advice I would give is get someone else to do it! I used Co-op legal services, and while it sounds like "giving money away" 3 times now, over 3 years after I thought it was all finished with, things have come up. The latest being my nephew buying his house, using his inheritance, as deposit The Mortgage company needed details of where,when, and what the money he inherited came from, wanted official documentation , etc.

I had an instance where 4 years after selling my step dads house, inland revenue suddenly thought as executor i owed capital gains tax on the property.

It would have been a right ball ache had I not been able to simply refer back to the Co-op.
Click to expand...
Disagree with this advice.
When my Dad passed away 10 years ago I allowed the firm of solicitors that held the will to apply for probate.
The application was passed along through 6 (SIX !!) of the firm's solicitors, took 8 months and a final bill that ran into 5 figures.
Contrast this to my Mum who sadly passed away last year where I handled it myself with probate granted in less than 10 weeks and (other than 5 copies of the Death Certificate and a notice in The Gazette) obtained at zero cost.
 




G

Gwylan

Well-known member
Jul 5, 2003
31,827
Uffern
The Maharajah of Sydney said:
Disagree with this advice.
When my Dad passed away 10 years ago I allowed the firm of solicitors that held the will to apply for probate.
The application was passed along through 6 (SIX !!) of the firm's solicitors, took 8 months and a final bill that ran into 5 figures.
Contrast this to my Mum who sadly passed away last year where I handled it myself with probate granted in less than 10 weeks and (other than 5 copies of the Death Certificate and a notice in The Gazette) obtained at zero cost.
Click to expand...

When my dad died, I left the whole legal stuff to his mate, a solicitor, who promptly waltzed off with all the money (and it wasn't a huge estate). Took me a year to get the money back from the Law Society,

When my mum died, my sister and I did a lot of work between us and used a solicitor for a couple of tricky bits (but made sure all the money came to us). Our legal bill was quite small and we got all the funds without any lawyers getting their hands on it.
 


A

amexer

Well-known member
Aug 8, 2011
6,829
Have dealt with this 3 times and no problem. If will is straightforward keep away from solicitors. Expensive and only doing something simple that you are able to do your self. Probate form looks daunting but it is not. Any questions I was not sure about rang a number on form and they were very helpfull
 


P

portslade seagull

Well-known member
Jul 19, 2003
17,944
portslade
Thunder Bolt said:
Didn’t the insurance policy have a beneficiary or has that person deceased too?
My Dad had two policies, Prudential and Coop. The Pru were fantastic, straightforward, the Coop a bit more complicated.
Click to expand...
Yeah he is survived by mum but they want probate b4 dealing. It's a very old insurance which was taken over on a buyout of the original firm. They have confirmed it's never paid out and been sitting there since the 1970s
 


Thunder Bolt

Thunder Bolt

Silly old bat
Aug 18, 2009
67,867
Beside the seaside, beside the sea
portslade seagull said:
Yeah he is survived by mum but they want probate b4 dealing. It's a very old insurance which was taken over on a buyout of the original firm. They have confirmed it's never paid out and been sitting there since the 1970s
Click to expand...
Surely a death certificate is enough. Tell them you need the finance for the funeral.
 


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