This case is a strong reminder to anyone considering Do It Yourself probate. You are obliged to make the fullest inquiries possible about the estate.
In particular about lifetime gifts made by the deceased before submitting the Inheritance Tax account. HMRC is taking a hardline approach to non-disclosure of lifetime gifts. Mostly because these gifts can have a bearing on how much Inheritance Tax is payable.
Whilst the Court found in this case that the Executors had not been at fault for non-disclosure of a substantial gift made by the deceased to his son before he passed away. They might have been made personally liable for the £87,000 penalty, which was imposed on the son as the recipient of the gift.
The case also clearly confirms that the recipient of a gift like this from the deceased has a duty to disclose it to the Executors of the estate.
Support for Do it Yourself Probate Executors
Our team now offers an Executor Support Service. This service is specifically designed for those Executors who only need help with the more challenging aspects of the estate. Whether that is completing the Inheritance Tax account, reporting the estate’s income to HMRC, or the preparation of estate accounts for the beneficiaries.
Dealing with a loved one’s estate can be a stressful and onerous task and so whatever it is you may be struggling with, we are here to help.
Probate Specialist Limited Probate team offers an Executor Support Service which is specifically designed for lay Executors and an initial fixed fee interview of £180 including VAT. However, we do recommend that you look at all our probate options before deciding on DIY.