Have a Tax Question? Ask a Tax Expert
FIrst. can you tell me whether the estate (excluding lifetime taxable gifts) if more than $5,250,000?
No, but this estate us being probated under UK law, because my mother was a UK resident, and therefore to UK probate law.
I understand, but the US system taxes all citizens regardless of residency, so I wanted to get that out of the way first - as well as to get a feel or general size ... also has probate in UK closed or not? THe answer will turn on this
You normally can't get access to the assets in the estate until you've received a grant of probate (or confirmation in Scotland).
You need to know the estate's worth to fill in the probate application forms and show whether or not Inheritance Tax is due.
No, the UK probate is still open and appears to be an endless process, the estate closing time of which is unknown.
This is a windfall, OUTSIDE of the estate...the velue of the estate just happened to increase since the the time she dies and the present day
These are the exact questions I have been asked of me time and time and time again.
There WILL be an accounting as a part the court putting the seal on the probate estate ... in some instances, the executor is asked to sign and verify for the final accounting ... let me see if I can find that documentation for you .... short answer is yes .... However, if you (or the representative or executor) has ALREADY been asked to verify the accounting and this windfall occured AFTER that time, you may have dodged the proverbial buller ... IF you can hang with me, I see if I can get this from HMRC
Can you rephase or provide specificity when you say "outside" of the estate? Do you simply mean AFTER she passed or are you referring to items that pass through agreement such as life insurance that bypasses the probate process?
My apologies, in UK life insurance IS part of the estate
Assets are anything that has a value, such as:
I mean her Estate grew AFTER her her death out of sheer market conditions.
OK just a sec thanks for that
Inheritance Tax must be paid within six months after the death. However in some cases you can pay by instalments if the estate includes certain types of assets.
If you've supplied the necessary information on your Inheritance Tax forms and paid all the tax and interest due, HMRC will send you a letter confirming that no more Inheritance Tax is due.
You may have chosen to pay by instalments but also paid Inheritance Tax due that isn't part of the instalment plan. In this case you'll get a letter confirming that you've paid the Inheritance Tax due except for the tax due by instalments.
When all of the instalments have been paid, HMRC will send another letter to confirm that all of the tax due has been paid.
These letters mean HMRC can't ask you to pay any further Inheritance Tax on the estate in question unless:
This is the answer ... paid within 6 months, based on what was included on the tax form ... once paid you get the confirmation letter ... the valuation is AS OF DATE OF DEATH