[Finance] Probate question

[essbee1]

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.

 

[Wes Tupper]

Does anyone know the difference between the two?

I’d guess £10,000, but that’s a bit of a stab in the dark.

 

[mwrpoole]

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.

 

[portslade seagull]

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]

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.

 

[essbee1]

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

All the best with this PS. The worst thing is you're constantly reminded of your departed.

 

[nickbrighton]

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]

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

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.

 

[rippleman]

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

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]

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.

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]

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.

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.

 

[Gwylan]

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.

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.

 

[amexer]

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

 

[portslade seagull]

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.

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]

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

Surely a death certificate is enough. Tell them you need the finance for the funeral.