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Will - how would you interpret this?(23 Posts)
My father died recently, he had three children and he left his estate to be equally divided. he also left a large bequest to his ex who is also the mother of the youngest of his children.
My dad didn't believe in tax planning, he always said that inheritance tax was not his concern.
The ex partner and her daughter live in another European country, let's say Italy. After they have received their requests they will be taxed on it in that country.
During my fathers illness and in the very first conversation I had with her after his death, literally the next morning, my half sister raised the issue of tax.
I suspect that she will ask us to compensate her for the Itslian tax that she will have to pay on her share of the money. My father was scrupulously fair and wanted us to be treated equally.
I am too close to this to see it properly, legally it is very clear that that the estate is taxed in England and then what remains is shared. Morally does she have a case, should we compensate her financially?
Finally, so as not to drip feed the sister was not particularly active during my father's long painful death from dementia and heart failure, and I am fucked off to put it mildly to have this thrown at me in the immediate aftermath of his death.
Regular name changer BTW, this is massively identifying but without all the details it makes no sense.
In my humble opinion, if the estate is taxed in the U.K. (And bare in mind, I have no legal knowledge of this), then you and your other sibling have no obligation (moral or otherwise), to compensate your half sibling for the tax she has to pay in her country. It is neither your responsibility nor your concern. It's just the way it is. Neither should you have to be dealing with this after your father's death.
Morally she should pay the tax due in her home country. It is classed as a capital gain or something akin to that, which is why she is effectively having the money taxed twice?
In fact morally and legally.
It is no concern of yours that she has to pay more tax. She should be grateful to get anything at all. She sounds grabby.
Leaving aside that she was a shit daughter in your dad's time of need, I think it's not your problem what the tax situation is in her country of residence and how that may affect her inheritance. You all were given an equal share of the estate (lovely dad!) and you pay your tax based on where you live. If the income tax was higher in her country of residence, would she expect you to compensate her? That's really not your problem and it's ridiculous of her to expect you and your other sibling to help pay her tax bill. She's a greedy chancer.
my dgrandmother died. everything was split equally. inheritance tax paid here and then money transferred to the USA and Australia. The value of the money was different due to interest rate fluctuations and I think that they were able to claim relief for tax so it wasn't paid twice.
I don't think the tax is your concern. settle it as per the will. her tax affairs are her own.
She sounds delightful.
No, I don't think you should compensate her for anything. You have no control over the country she lives or their tax rules.
I'm sorry you're having to deal with this.
The way I read the start if your post is that the ex gets a large fixed bequest and the remainder of the estate is split three ways, you, the exes dd and another sib. Your half sister may well inherit from her mothers fixed bequest in due course. So it may effectively be reasonably 'fair' as it is.
Ps I'm sorry you've lost your dad.
Presumably there will be a solicitor dealing with probate - I'd leave it all up to them (but maybe speak to them and explain the hassle you are being given by your relative).
They are entitled to what they've been bequeathed - if there are any taxes for them to pay on their inheritance because they live in a different country, then that's their hard luck really.
Sorry for your loss
IMO whatever tax is due in the UK should be paid before the residue is shared. The additional Italian tax is nothing to do with you.
Explain as clearly and unemotionally as possible that as an Executor you are legally obliged to do what the will states and that is that. Whatever impact the money has on the beneficiaries is not part of that legal duty.
The tax laws of a different country is nothing to do with this.
Try to get your feelings about what the ex did or didn't do in your father's final days and remain as unemotional as is possible when dealing with the estate. Easier said than done, I know (from bitter personal experience), but it's hard enough to have to deal with this without adding the emotional baggage of the your half sister's unreasonable attitude. Try to put that to one side, until you can deal with that when things are less raw.
that's an excellent point from errol ...I'd go with the will as it stands and to hell with her tax problems.
Your dear dad wasn't worried about the tax problems of other people, so I see no need for you to be.
I don't think you have any legal or moral obligation to worry about her tax issues - they are due to her choice of where to live
Also this might be useful - she might NOT have to pay any more tax than a UK resident anyway
double taxation agreements
Sorry you are going through this.
My Dad died in April and I have had to do everything with regards to his estate whilst my brother sits abroad asking me stupid questions. I have transferred some money to him and he seemed surprised that I was taking the transfer charge out of his share of the estate.
Her tax affairs are of no concern to you.
Its also an extremely good point that your dad had no interest in other peoples tax affair, so neither should you! go with that.
Very sorry for your loss.
I agree it is not your responsibility at all but as far as I am aware the UK and Italy have a double tax relief agreement with regard inheritance tax so your sister will likely be able to claim back if she is double taxed. Obviously her issue to deal with but if she asks you can tell her to seek tax advice about it. Might get her off your back.
Thank you everyone, I really couldn't tell if I was being unreasonable. It will be tricky because sister is also fed up that she is not an executor of the will and has already explained to me what I need to do and by when and it is taking up headspace that I need to grieve for my dad
I mean I am a totally competent person, more than capable of sorting it out I just want to do it without her breathing down my neck
Don't be afraid to tell beneficiaries that you need a few weeks or a month to not do anything about the estate. IHT not due until end of 6th mth after death so let yourself have some breathing space to grieve then pick up with estate.
Executors often find that beneficiaries are pushy about sorting the estate but actually it's ok not to rush to a degree.
A relative of mine died recently and one executor (also a beneficiary) has been trying to push for the house to be cleared and sound and the other pointed out the relative wasn't even buried yet and to wind their neck in.
I don't envy you...handling estates is no fun. Sorry for your loss and the resulting difficulties you will likely face
I also agree you have no legal or moral obligation to compensate her for the tax arrangements of the country she chooses to live in.
And errol makes a very good point, she will probably benefit from her mum's bequest as well.
Sorry about your dad
Sorry for your loss. She ought to remember that as she didn't pay much interest in him while he was alive, she is hardly in a position to start feeling entitled now. And if she chooses to live in another country then its tax laws are not your problem. Remind her that as she was so distant she's lucky you're not contesting the will.