Probate Application

Trusts Discussion
1

Helping a friend apply for probate following death of his mum.

Estate is made up as follows:

Leasehold rental property - £200,000 – to her children

Sole named bank account - £17,500 – to her children

Joint bank accounts - £70,000 – to spouse

Residue (shares & bonds) - £307,000 – IPDI – income to husband for life; remaindermen her children

Gift made within 7 years of death - £10,000

Total estate - £604,500.

Questions:

  1. Does the ”exemption for assets passing to surviving spouse” include the IPDI and therefore making it an excepted estate?

  2. If it does, is the only form that needs to be completed PA1P and will this be sufficient in order to transfer the property into the children’s names?

Thank you in advance

2

Hi Wayne

I do not know the answers to your questions but I believe that they are not obscure points to those dealing with probate professionally

The fact that you ask them therefore implies to me that this is not an area you deal with. I am very wary of lay people “helping” their friends on legal /professional matters. Not a good idea for either party. I would suggest they seek professional advice to deal with the Estate and also get the trust properly set up in terms of registration, investment management, tax compliance etc. As I have said before, it costs a lot more to get things wrong than it does to get them right.

Sara Spencer

1 Like
3

Seems to me you have fallen into the trap of assuming applying for probate is job done. There are a few tax issues here with ongoing requirements as part of the estate administration. Rental income, share divs etc all requiring tax to be paid by the estate at the relevant rate.

There is then constituting the trust, trust registration.all with other aspects of the estate administration.

The best way to help your friend is to suggest they instruct a professional.