Having just been through all this, I can assure you that 4 out of 4 financial institutions were able to transfer money direct to The Revenue within 24 hrs on written authority from the executor who is, after all, normally named in the will. What would happen with no will, or no named executor, I'm not sure, but the system wouldn't function at all if nothing were released before probate.
In message , stuart noble writes
But that's how it is. Letters of Administration, rather than probate, but if an initial estimate of assets suggests IHT is payable, then it must be paid before LoA is granted. And I know at least one bank which refuses to do anything further than freeze an account before LoA. They would also not provide access to documents stored by the deceased, which might have contained a will.
In message , stuart noble writes
If the sums are relatively small, the personal representative (who may or may not be the executor) may be allowed to make a withdrawal against them indemnifying the institution against any subsequent claim.
I say again, that (except in small estates) an executor can not claim his position until the will is proved in Probate.
Yes it does. Thats what 'first proceeds' loans etc., are all about.
And I say again that from my personal (and very recent) experience that, either this is not the case, or there is an interim stage where the executor does not have full powers to execute the will, but can nevertheless authorise the release of funds to either a funeral director or The Revenue. In this case the initial IHT instalment was around £300K, so no question of the estate being small. This "arrangement" between The Revenue and financial institutions is well documented in IR form D20 notes. What is this form for if not to release funds before probate?
In message , stuart writes
IHT200 (and the use of d20) comes AFTER the probate interview doesnt it, i.e. after the will is declared as being THE operative will?
Re D20, I think we may have been at cross purposes because I got the impression you were suggesting that whoever thought they were executor could just write a cheque (as it were) form the deceased's account.
As an aside, Within the last few months I found I was an executor for an estate and the deceased hadnt even asked me and I didnt know I was to be executor, in fact a family member of the deceased assumed she was executor until a later will turned up! Luckily none of the financial institutions would act on her claim (which was a genuine in claim in so far as she knew she was the executor in the previous will and had no knowledge of the subsequent will). A bit awkward all round!.
In theory IHT200 has to be completed before the interview, if only to establish the true value of the estate. That overall figure is declared when you apply for probate. The interview is just swearing that you are who you say you are and establishing that you are the one with most right to act on the deceased's behalf . After the interview you submit IHT200 to the beasts in Nottingham, who then send you a bill for the money they want right now and the money the're prepared to wait for (the house value usually). They also make it very clear that, at this stage, they haven't examined your figures AT ALL, and that they fully intend to spend the next six months doing so! D20s are then sent to the banks etc who transfer the first instalment to IR. They then authorise The Probate Division to issue the grant. Then you go round the pub.
I don't think the executor can write cheques to anybody, but money can leave the account by transfer, if only to IR and the undertakers. No expert by the way but I was forced to learn as I went along with all this, mainly because I didn't want the executor (and sole beneficiary) to fall into the hands of the legal profession. They were quoting percentages (like 1 and 2 would you believe) of the estate to deal with probate, and I couldn't see that the value of the estate had anything to do with it. This one had more noughts on the end than I was used to but wasn't actually very complicated. They also wanted to draw up various deeds without which, apparently, probate could not be obtained. Needless to say, that turned out to be nonsense. Generally I'd say the whole process requires no more than commonsense and a bit of organisation and no one should be put off d-i-ying it. By all means pay for advice about *avoiding* IHT but, after the event, well, things are pretty straightforward.
Certain banks also seem to be good to avoid. We are now dealing with my late Mother-in-Law's estate and having trouble with LLoyds who seem to feel they can grab (not see) the master copy of the will before probate is even applied for. No justification given either, nor a receipt issued for the chequebook and guarantee card.
Even JobcentrePlus give you a receipt for the pension book.
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