Inheritance Tax, help!

[HelpIHTPickle]

Hello

My MIL recently passed away and DH is due to meet with solicitor soon to start the probate process. MIL lived in a modest 2 bed terrace worth around £100k, however she spent many years of her life collecting certain items (sorry, I'm not wanting to say what these are), some of which are apparently quite rare. She told DH and BIL years ago that it was all worth over £1 million and that when her time came, they should 'flog the lot on ebay'. The items are numerous (apparently in the hundreds, if not thousands).

However, BIL has mentioned that they will be liable to pay IHT on this before it can be sold. If it's true that the collection is worth £1m, it means a bill of over £200k - how on earth is this meant to be paid if the items cannot be sold upfront??

We have 3 young DC and a mortgage, we both work, our combined income is 40k a year. I'm losing sleep and getting stressed over this can anyone offer any words of wisdom?

Red IHT needs to be paid before items can be sold, so that wouldn't be possible. Have talked to DH and they are going to see about getting a valuation as it looks like the items are in the thousands as opposed to hundreds.

MIL had been divorced for 25 years, so no spouse to pass items on to.

When looking at a valuation, try and get a specialist for probate purposes. You need to have a realistic sell value and not an insurance or replacement value. Even just for chattels it was worth paying for an assessor as I was surprised how little things like sofas and furniture would be valued.

Thanks user. Well, it looks like MIL had upwards of ten thousand items, DH is feeling overwhelmed and is talking about getting solicitor to be executor of the estate, he was talking about taking the job on himself but knows now it's going to be far too much work (the executors named on MIL's will have long since passed away).

Get quotes from solicitors and agree a fixed fee if possible. I've seen ridiculous sums charged by solicitors for a process which is not exactly legally complex.

You could start a new thread using a different name and detailing the type of valuables involved here because some MN'er somewhere may be able to point you in the right direction for getting them valued/sold. It may be that you could use the services of a specialist valuer/auctioneer who would publicise the items via the auction community networks and make money from the buyers commissions so minimising cost to the family of disposing of these items.

If your MIL listed the items she did you a massive favour as the list can be circulated to interested parties in the first instance.