Probate Granted Assets not distributed
Submitted by hellcatuk on Thu, 02/02/2012 - 12:09
My wifes mother sadly passed away over a year ago. In her will she left the majority of the estate to my wife & her sister. Three executors were appointed two uncles & the family solicitor. Also a property was sold to raise money. Probate was granted in April 2011 with no inheritance tax to pay. However my wife or her sister have only received a portion of the estate so far, with the executors saying that they are holding the rest back to pay taxes which 'might' be due on a rental property the deceased owned. My wife & sister wish to have closure on the estate now as it is causing a lot of anxiety etc. Do they have any rights to demand closure or any advice how they can proceed to move things along. Thank you
To which tax are the
To which tax are the Executors referring, presumably Capital Gains Tax? Was the rental property sold in the deceased's lifetime?
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There are two propeties
There are two propeties involved. The deceased main house which was sold, to pay for the estate expenses, and the rental property which is left to my wife & not sold as part of the estate. However her mother never filed any tax returns for the rental income, from this property. Thanks
If the Executors are holding
If the Executors are holding back money so that they can pay any income tax that may be payable in respect of the rental property then this is perfectly reasonable. Indeed this is what they have to do to make sure that the estate is correctly administered and that all debts are paid.
Perhaps your wife could apply a little pressure by asking whether an accountant has calculated the tax liability together with any penalty that will be imposed by HMRC. Ask the Executors to specifically confirm what stage they are at with the calculation or payment of the income tax and when they expect the matter to be finalised.
I am a Legal Advisor employed by Sarginsons Law and specialise in Civil Litigation matters. I deal with disputes between individuals and businesses including Landlord and Tenant issues, debt recovery and property disputes.
Telephone 02476 553181<