13 May 2016

A question about : executor redponsible for council tax?

Hi,

Wondered if someone has the knowledge and would be kind enough to advise us.

My partners Father passed away and both she and her sister were made executors. To cut a long story short after about 2.5 yrs his house was repossed as it just wouldnt sell - it went for less than he actually paid for the property and with all the bills there was nothing left in the estate.

We have now received a council tax bill for the property for Ј1300 is my partner and sister actually liable for this?

Previously they did charge us Ј300 odd pounds to which we paid out of our savings I did complain about being mislead by their staff as the money should come from the estate to which they did reluctanly refund, because of this i thought it was all over but now they are chasing us again.

Best answers:

  • They are not personally responsible for it. Unless they badly mishandled the estate.
    You mention bills - this is effectively another bill. All bills should have been paid out of the estate - if there was not enough to pay 100% of them a proportion (the same proportion) of each one. Not all of some and none of others.
  • Cheers dzug1
    As it stands and this is roughly
    Bought 85k
    30k deposit
    53k mortgage
    10k was added onto morgage in interest since his passing
    Repossesed and sold for 63k
    Inc council tax 2.5-3 k in outstanding bills
    Solicitor has dealt with everything so far.
  • The house was not transferred - my partner and sister were just appointed as executors, no one inherited anything of value.
    They held out for enough money on the house sale to cover all costs even though this was way lower than initial purchase price but unfortunately as thr mortgage provider kept adding interest repossesion was the only viable option.
    So now even with the house sale the outstanding mortgage interest and bills are simply not covered
  • I have always found the Probate Office very helpful - although they may not get involved if everything has been wound up.
    I also think you should contact the Council - preferably in writing. Explain (briefly - no need for detail about repossession etc.) that the estate has been settled and there was not enough money to cover outstanding bills. Say that you are taking advice about dealing with this. That should at least stop them harrassing you for the time being.
  • https://www.direct.gov.uk/en/MoneyTax...rs/DG_10013093
  • I realise this thread is a wind up, but for the benefit of anyone who may genuinely be an executor of a deceased's estate and is awaiting probate or letters of administration to be granted, such an unoccupied property is exempt from council tax, and for up to 6 months thereafter.
    Edit: A property that has been repossessed by the lender is also exempt from that time.
  • Wywth, I don't want to hijack a thread, genuine or not, but could explain that rule a bit more. Is it exempt until Probate is granted and six months thereafter, or six months after the death, or removal of furniture? I can't work it out from bumph I have and the Council Tax office are very slow in replying to my e-mails but have led me to believe some Council Tax is due from my mum's estate (which I don't have a problem with and have held back funds for this, just want to make sure the calculation is correct).
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