Wills!

[MissChief]

but my immediate reaction is "contact a solicitor tomorrow". I may be over-reacting though.

I think this is wise advice.

 

[booyaka]

Yes - assuming they are "grown" children - contacting a solicitor would be wise "if" they wish to get to the bottom of this.

Obviously that may cause some serious family issues with their mother - hence why, unless "directly" involved..... stay clear of it yourself.

 

[jaybee]

As someone who has a will, I admit I don't understand half of this stuff. Ours was done a bit rushed and the advice I was given was not very good imo.

Can someone explain to me... as per the op...why has this situation arisen? I mean to say, person X has died (sorry for your loss OP) so why are the children not getting stuff? Is this because someone needs to carry out the will? Is that the executor? What if nobody does anything ever?
In my simpleton head, I feel like when someone dies it gets recorded and therefore Will processes should automatically start. Is that not the case then? What does applying for probate mean vs executing the will?

 

[EvilRob]

The IHT zero is £325,000. However, the surviving spouse combines both so can receive £650,000 or £1m if it includes the home. However, my brother owned three houses, all of which are worth over £300,000, and on top of that we know he had at least another £350,000 in savings. That means, as we understand it, there is tax to pay, which means she is in trouble. Also, because she may well use the IHT zero for herself now, there won't be an allowance when she dies, which means the entire estate will be taxable at 40%. I think!

Incorrect. There is no IHT between spouses and if he left everything to her then likely the combined £650k allowance + the residence nil rate band will be available upon the her death (barring any unusual circumstances/arrangements). If he left anything to his kids that will be deducted from the nil rate allowance passed from his estate to his wife's estate and available when she dies.

How old are the kids and are they also the wife's kids?

 

[SmokeKingGun]

The IHT zero is £325,000. However, the surviving spouse combines both so can receive £650,000 or £1m if it includes the home. However, my brother owned three houses, all of which are worth over £300,000, and on top of that we know he had at least another £350,000 in savings. That means, as we understand it, there is tax to pay, which means she is in trouble. Also, because she may well use the IHT zero for herself now, there won't be an allowance when she dies, which means the entire estate will be taxable at 40%. I think!

1 house worth approx 300k jointly owned - brothers share automatically passes to wife.

350k in bank, if jointly owned bank account funds pass to wife

Probate is note needed for above just a copy of death certificate needed and uses no IHT allowance.

When the surviving wife dies above will form her estate and will have 325k IHT allowance (500k if passed to direct descendants - as yours brothers 500k limit will be used as below)

So that leaves 2 houses at 300k each (if solely in brothers name)

IHT tax free 325k and add 175k residence nil rate band if house passing to direct descendants.

So 100k probably taxed on @ 40%

40k due tax on brothers estate

I think the max fine for non payment of IHT is £3200 but you may want to check that as if interest is constantly accruing needs urgently dealing with.

Edit. Sorry looks like a bigger tax bill than 40k, residence nil rate band can only be used against 1 property and not split between 2

The RNRB cannot be offset against other properties owned by the deceased; for example, buy-to-let or investment properties. However, if the deceased has two qualifying residential interests, then the personal representatives can nominate which property will utilise the RNRB. It cannot be divided across two properties.

 

[MissChief]

Obviously that may cause some serious family issues with their mother - hence why, unless "directly" involved..... stay clear of it yourself.

I'm sure it was said that the father remarried and she wasn't the children's mother?

 

[booyaka]

I'm sure it was said that the father remarried and she wasn't the children's mother?

opps - missed that if it's the case.

 

[booyaka]

As someone who has a will, I admit I don't understand half of this stuff. Ours was done a bit rushed and the advice I was given was not very good imo.

Can someone explain to me... as per the op...why has this situation arisen? I mean to say, person X has died (sorry for your loss OP) so why are the children not getting stuff? Is this because someone needs to carry out the will? Is that the executor? What if nobody does anything ever?
In my simpleton head, I feel like when someone dies it gets recorded and therefore Will processes should automatically start. Is that not the case then? What does applying for probate mean vs executing the will?

In effect - someone has to "execute" the will - that is normally the executors. That can be family member or solicitors etc.

Whilst death is obviously recorded - what someones "estate" is worth, left to etc - is up to the will/executors to deal with in the correct manner.

As an executor there are very strict rules, and you can be held liable for not dealing with it correctly.

 

[MissChief]

opps - missed that if it's the case.

Just checked and it wasn't in the first post, they only added this in Post 3.

 

[SpellowHouse]

OH, and I forgot to mention the main house which is work £650K. That puts her well in to "taxable".

 

[EvilRob]

OH, and I forgot to mention the main house which is work £650K. That puts her well in to "taxable".

As I and others already mentioned there is no IHT between spouses.