deadline for finalising probate, inheritance tax etc.

[thimble]

Is there any timeframe after a death within which matters relating to inheritance/probate must be finalised? Almost 4 years on from death and 2.5 years after probate was granted, distributions have not been completed and it seems now that errors were made in submitting the original documents for probate. The solicitor's performance in all this has been woeful, and I'm now concerned that the long delay may have serious implications - legal obligations? tax? other?

Are there any time limits relating to probate/inheritance legal or financial matters, incl. taxes? I know that one can only go back 4 years with Revenue when reclaiming taxes. Could this have any relevance here? I'd hate to run into problems due to the solicitor's incompetence and laziness.

 

[Towger]

I had this problem about 10 years ago. AFAIK interest starts clocking up on inheritance tax 6 months after death, on an alarming monthly rate.

I got a bill for inheritance tax from the again useless solicitors (very large company) for 10k IEP of which 40% (or 60% can't rember which way now) was interest. I said this was ridiculous, so talked to accounts I know etc, told the solicitors I was going to pay Revenue directly. So I sent Revenue a cheque for 6k with a letter explaining the reasons for late payment (rant about exectors and solicitors) and asking if I need to pay the interest, they wrote back looking for copy of probate ??? etc. I got that they were looking for from the solicitors and sent it to Revenue and that was the last I heard of it. !! I am still wondering to this day about it.

Towger

 

[Vanilla]

Generally speaking inheritance tax is due 4 months after the valuation date. However the valuation date is not necessarily the date of death. It can also be the date of the grant of probate. Or in some cases a case can be made to the REvenue that because of a particular difficulty interest should be mitigated and they will accept this in genuine circumstances. However if interest is due on inheritance tax due to the solicitors negligence then you would have a case against the solicitor.

 

[thimble]

Thanks Towger and Vanilla.

I think (I hope!) that at least some inheritance tax was paid. However, there's now a difficulty because the solicitor messed up the inheritance tax declarations, so the tax due is different. If the newly calculated tax due is less than what was paid, will it still be possible to claim back the difference if it goes past 4 years from a particular timepoint, and if so, what will that timepoint be? Will there have to be a new valuation date when the new inheritance tax self-assessments are submitted? I see the valuation date on the original forms submitted was the date of probate.

Also, are there any other possible implications of the long delay in finalising this estate (i.e. currently almost 4 years from death and 2.5 years from grant of probate/valuation date)?