26 Feb 2015

A question about : What does the 'net value of such estate does not exceed'? mean?

I have the grant and probate forms through from the registry and I am trying to match them up with the cheque and form that I have received from the executors.

Could anyone confirm what the 'net value of such estate does not exceed Јxxx' mean? Is that the amount left from the will after all deductions have been taken?

As the money which I received does not even come close to a 3rd of the amount stated in the grant (which I obtained myself).
Any advice or help deciphering how I work it out if the amount I have is correct would be gratefully appreciated.

Thanks!

Best answers:

  • You need the inventory and account.
  • OP's previous thread https://forums.moneysavingexpert.com/....php?t=5154615
    1) One possibility is that your cheque isn't your full inheritance, but an interim payment. What does the covering letter that came with the cheque say?
    But answering your question:
    2) The 'Јxxx' is the value that the executors estimated the estate would be worth when they applied for probate. Yes, this estimate is 'net' and so would take into account the estimate of the debts and costs as well as the estimate of the assets.
    The final value of the estate could be a bit different from the estimate, if assets, debts or costs turn out to be different from those expected, e.g. if a property sells for much less (or much more) than originally expected.
    HMRC would only want to know about such a difference if inheritance tax is payable anyway, or if the final value makes inheritance tax payable, when it wasn't so esimated originally. If there are no IHT implications the executors don't need to inform HMRC.
    The final estate accounts from the executors should clearly explain how the final estate value has been arrived at. What are the forms sent from the solicitor with your cheque? Are they final accounts?
    If the final value of the estate is very different from the estimated value at the time of probate then you should ask for an explanation.
    There may be a valid one. In your situation I would be a bit concerned and suspicious too.
  • I can't remember the exact details off the top of my head but I think there are 3 potential statements on the Oath about the value of an Estate - and those will go onto the Probate.
    The net value will be after all deductions to the date of death but not including administration expenses. However, I'm pretty sure that in non-taxable estates you can declare the net value as not exceeding the IHT threshold, so in fact this might not be a good indication of the value of the Estate.
    You need to see the Accounts. As suggested above, if you are presented with a receipt for the cheque then just sign to say you confirm safe receipt of the money but don't agree that it's all that you are due or anything similar.
  • You haven't said much about what is actually in the will.
    You said in a post on your previous thread that the will says that the 'money' is to be split three ways between the three children of the deceased.
    Do you mean that
    (a) The house is to be sold and then the total estate is to be split equally between the only three beneficiaries, the children of the deceased
    If this is the case then something is definitely amiss, as an estimated Ј200K estate shouldn't shrink to a Ј30K estate.
    There are other possible scenarios that you might not have understood in the will:
    (b) House has been left to someone (wife, or your brother who seems less independent), and liquid assets ('money') are to be split between the three children. Cash assets were Ј30K, of which Ј10K is your inheritance. [House worth Ј170K was left to someone else who has now sold it. Nothing to do with your inheritance].
    (c) Wife might have been left a 'lifetime interest' in the house (which in some cases can include selling and moving to another property). Your inheritance is one-third of the Ј30K cash (Ј10K) and one-third of the house when wife dies (or remarries, or whatever is specified in the will …)
    Some solicitors will offer half-an-hour free advice.
    As you have the will, probate documentation, cheque and latest correspondence from the executor's solicitors, I would get another solicitor to read these and confirm your understanding of what the will actually says.
    If it is indeed (a) as above, then I think it would be money well spent to get things on a formal footing, solicitor to solicitor, to get your solicitor to request the final accounts on your behalf, and question why a Ј200K estate seems to have shrunk to Ј30K as implied by latest correspondence with cheque.
  • If you go to a solicitor, they will ask you about the value of the estate.
    If you do not know how the house was owned, you cannot tell them. Go to https://www.gov.uk/government/organi.../land-registry and download the information.
    Or pay a small fortune to a solicitor to do the same.
  • If a house was owned as joint tenants 1/2 the value will still appear in the net estate even though it does not form part of the distributable assets.
  • What are you being asked to sign? Something which says that you have recieved a cheque for Ј10k (true) or that you have recieved your share of the estate?
Категория: