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Original poster

Must suddenly find 20k for probate? Is this right? HELP needed

26 replies

Chubbyspud · 30/08/2022 10:19

I’m a little at sea on this so any answers, especially dummies guide standard are welcome. I might be being really stupid so here goes….

My Dad and I are executors on my uncles estate. My dad has just been told by the solicitors today that we must find 20k to pay the inland revenue before probate can be released. They need it now. This is the first we’ve heard of it and do not have 20k just hanging around. My poor dads in a bit of a panic. I’m going to speak directly to the solicitor myself shortly but before I do wondered if anyone can offer me advice on what it might be so I can streamline my questions and get straight to it to avoid running up a big bill communicating with the solicitor.

Is this a normal requirement? (I have never done this before so I’m flying by the seat of my pants)

Are there any particular questions I should be asking?

Does anyone know what this unexpected 20K might be for and why they don’t just deduct it from the estate?

For info in case it helps: My uncles passed away in October 2021 so could it be interest on the inheritance tax? It feels like a lot and also wondered why they can’t just take it with the inheritance tax? The estate includes the sale of a house which is not yet complete so not sure if that’s relevant. There is definitely enough in the estate to cover it.

OP posts:

londonmummy1966 · 02/02/2023 23:40

Chubbyspud · 01/09/2022 12:00

Thanks you everyone, this is really helpful. I’ve had a bit more info from the solicitor. So some of the assets have been liquidated and almost half of the inheritance tax has been paid, so I’m slightly confused about the instalment because this £20k was described as the first instalment.

I’ve managed to source the funds to pay. Our solicitor told us to avoid the specialist probate loans, although I’m not sure why.

One thing that has struck me as odd is that none of this has been done in writing, only over the phone. Other solicitors we’ve used for other things (like house sales etc) always put everything in writing, especially the request for a large sum of money. Even the bank details were given over the phone. I’ve requested a written request and have received nothing yet, even though we were told that the situation was urgent and that we need to pay a soon as possible. I’m not trying to say the solicitor is being dodgy but it feels a bit slack at best. Is this normal or am I being unfair? I’m wondering if I should just phone HMRC direct and ask to pay them myself. I just feel uncomfortable transferring money without any written confirmation of where its going.

I don't like the sound of this - I'd ask the solicitor to put everything in writing and also phone the Capital Taxes Office and ask them to confirm the position - you can speak to them directly as an executor even if you have given an authority to the solicitor. Normally in order to get probate you'd have to pay tax on the liuid assets and the tax on an unsold property is paid in installments of 10% pa until the property is sold when all tax becomes due.

If the solicitors are reluctant to put detailed tax calculations in writing you should report them to the Law SOciety as this is really unprofessional. In my many years as a tax partner I always wrote to clients to tell them how much tax was due and how it was calculated.

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