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Legal matters

Mumsnet has not checked the qualifications of anyone posting here. If you have any legal concerns we suggest you consult a solicitor.

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Original poster

Probate - credit card bills and house

9 replies

frogswimming · 04/09/2023 15:45

As above. A relative died leaving credit card bills and a house. No way to pay off bills without selling house. The recipients can't sell house without probate, but can't get probate without settling bills? How does this work? What order to things happen?

Thanks!

OP posts:

MooseBeTimeForSnow · 04/09/2023 16:03

Who said you can’t get probate without settling bills?

Original poster

frogswimming · 04/09/2023 16:09

I just thought it? I know I could ask solicitor but just looking for quick info first.

OP posts:

Bromptotoo · 04/09/2023 16:09

@MooseBeTimeForSnow my question too!!

The only bill that has to be settled before probate is IHT?

Is that an issue here?

Original poster

frogswimming · 04/09/2023 16:13

Entire estate over limit. Once divided between siblings well below limit. So I don't think it's an issue?

OP posts:

Rubyrach · 04/09/2023 16:14

We had this for an elderly relative. Instructed probate solicitor, then passed all post to them. They then dealt with bills and house sale.

Pilateshappy · 04/09/2023 16:16

What do you mean once divided by siblings?

The estate value is the whole estate of the deceased. Anything over £325K will be taxable.

Was the deceased widowed? You may be able to use the pre deceased spouse allowances against the estate.

Is the property being left to 'direct descendants' aka children? You may be able to use some allowances there too.

I'd suggest speaking to a solicitor in this case as you don't want to under/overpay any IHT liability.

Original poster

frogswimming · 04/09/2023 16:20

Ah ok. If value house higher than £325 but each sibling would inherit less than £325 when divided up, tax applies to the total amount not the portions?

OP posts:

irregularegular · 04/09/2023 16:33

Yes, tax applies to the total value of house/estate. It does not matter how many portions it is divided into.

You pay credit card debt out of estate once probate granted.

If it a home (not an investment property) is being left to children then you get an extra £175k allowance. You can use the allowance of a pre-deceased spouse too, if not used before. So you can leave a house worth 1 million before paying tax (very wrong in my view, but that's the rules!)

catndogslife · 04/09/2023 17:14

If there is a will, the executors are responsible for selling the house once probate is granted and for paying any bills due e.g. funeral expenses. There may be overlap between the recipients and executors, but they may not be the same people.
IHT is taken from the value of all assets, but debts would also be taken into account and also payments such as funeral expenses.

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