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The Probate Department of John’s bank expresses trite sympathy for our
loss, but refuses to pay any outstanding bills, even though there is
nearly £200,000 in the accounts, more than enough, we hope, to pay the
IHT. When asked how we settle outstanding bills, we are told to ‘get a
loan.’
We have to get hold of John’s original will, not a copy, and Jo and
myself both have to sign for it in front of the solicitor. Probate
cannot commence without the original will.
We also need the birth certificate, and at least a dozen copies of the
death certificate, which is issued only after the post-mortem. Copies
are demanded by every utility and official body, before they will
agree to stop their particular service.
April 2004
The first job is to get John’s assets valued for Probate. This
includes cash at the bank, real estate, stocks and shares, vehicles,
jewellery, paintings, antiques, furniture. Even Ikea furniture; in
fact, anything which may have a saleable value.
The Probate Office will only accept written valuations made by
appropriate professionals, so we get estate agents to value John’s
properties, six in all – three owned by him and three owned jointly by
John and myself. Nowadays, estate agents charge for probate
valuations, and it has become a source of revenue for them. Ours agree
to waive the charges if we put the properties on the market with them.
None of these properties can be sold until we receive the Grant of
Probate which in turn cannot happen until the IHT is paid. It looks as
though we will have to pay around £165,000 IHT on the sum total of his
assets.
Jo and myself and another beneficiary pay for the Memorial ourselves.
Otherwise, caterers, photographers and other small operators could
wait for up to a year to be paid.
We cancel John’s telephone, council tax, insurance, AA
subscription, etc, and inform all utilities and credit card companies
of his demise. This takes a surprising amount of work and effort.
Every week, though, letters come to his address demanding payment. We
get threatening letters from debt collectors; British Gas threatens to
break into the flat and turn off the gas supply unless the account –
less than £50 - is paid forthwith.
April- August 2004
Nothing whatever happens, except that the threatening letters
continue to arrive. We receive an offer for John’s home and explain
that we cannot sell it until we receive the Grant of Probate,
which is dependent on the Inland Revenue accepting the solicitor’s
estimation of the sum total of John’s assets. We donate John’s car to
Jo’s teenage son and the solicitor values it at £100.
We learn slowly what we can and cannot set against IHT. Every monetary
or saleable asset, however small, is liable to be included. There are
certain things, however, that we can set against the final amount,
such as all bills, tenants’ deposits, outstanding income tax, cost of
the memorial service and estate agents’ fees. Legal fees, however, are
not included and must come out of the remainder of the estate. Our
solicitor is meticulous, if excruciatingly slow.
NEXT MONTH Selling the flats… and tips on dealing with
Inheritance Tax
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