CA24 - Sect 8 Beneficiary Details

johnc2017

Hi All

Looking for some advice. I'm currently going through the probate process for my recently deceased wife. In regards to the above mentioned section, my wife didn't leave a will and I'm still unsure of beneficiaries apart from myself for numerous reasons. Is it possible to leave this section blank, and then when I do decide to distribute funds it will be up to that person to contact revenue to pay relevant IHT. Does it have any implications for said beneficiaries?

Or after I decide would I contact revenue to update details once known.

Thanks of any clarification

thegolfer

johnc2017 wrote: »

Hi All

Looking for some advice. I'm currently going through the probate process for my recently deceased wife. In regards to the above mentioned section, my wife didn't leave a will and I'm still unsure of beneficiaries apart from myself for numerous reasons. Is it possible to leave this section blank, and then when I do decide to distribute funds it will be up to that person to contact revenue to pay relevant IHT. Does it have any implications for said beneficiaries?

Or after I decide would I contact revenue to update details once known.

Thanks of any clarification

Hi johnc2017, sorry for your loss.

From your post your wife died intestate, no will, and there are specific rules laid out for such situations. I have set out below the first two rules, from intestacy laws.

-spouse/civil partner but no children - spouse/civil partner gets entire estate
-spouse/civil partner and children - spouse/civil partner gets two-thirds, one-third is divided equally between children (if a child has already died his/her children take a share)

It may not be up to you to decide who the beneficiaries are, but the rules of intestacy would dictate this.

If you have kids then you get the 2/3 of her estate, and the remaining 1/3 is split equally between the kids.

I would speak to your solicitor first to establish the beneficiaries under the rules of intestacy to avoid any issues down the line.

johnc2017

thegolfer wrote: »

Hi johnc2017, sorry for your loss.

From your post your wife died intestate, no will, and there are specific rules laid out for such situations. I have set out below the first two rules, from intestacy laws.

-spouse/civil partner but no children - spouse/civil partner gets entire estate
-spouse/civil partner and children - spouse/civil partner gets two-thirds, one-third is divided equally between children (if a child has already died his/her children take a share)

It may not be up to you to decide who the beneficiaries are, but the rules of intestacy would dictate this.

If you have kids then you get the 2/3 of her estate, and the remaining 1/3 is split equally between the kids.

I would speak to your solicitor first to establish the beneficiaries under the rules of intestacy to avoid any issues down the line.

Thanks for your reply. Unfortunately we never go the chance to have any children so thats not an issues, so as there is no will then her estate would pass to myself. But I would like to distribute some of her estate to her brother, sister and to her nieces and nephews. But I'm unsure yet of details.

So my question would be if I leave beneficiaries blank for now does it cause any issues for said beneficiaries I decide on at a later date?

thegolfer

johnc2017 wrote: »

Thanks for your reply. Unfortunately we never go the chance to have any children so thats not an issues, so as there is no will then her estate would pass to myself. But I would like to distribute some of her estate to her brother, sister and to her nieces and nephews. But I'm unsure yet of details.

So my question would be if I leave beneficiaries blank for now does it cause any issues for said beneficiaries I decide on at a later date?

Technically you are the only beneficiary of the estate, and no one else.

You inherit the estate in totality, and then any passing on of the estate is deemed as a gift from you and not your late wife.

I would leave this blank, however, seek the advice of your solicitor before submission.

Peregrinus

Definitely talk to a solicitor before doing anything (and before talking to your wife's family; you don't want to raise expectations and then upset people if you change your plans, after taking advice).

Generally, if you simply disclaim an inheritance from your wife's estate and the property concerned then passes under the rules of intestacy to whoever would be entitled if you had not survived your wife, that person will be treated as inheriting from your wife.

But if you disclaim "in favour of Jim", say, then Jim is treated as receiving a gift from you.

The tax consequences for whoever gets the property can be dramatically different, so it's important to know what they will be before you decide how to act. Your wife's family will generally be better off being taxed as inheriting from her than they will be being taxed as receiving a gift from you.

The downside of letting the property pass under the intestacy rules is that you have no control over who gets it. If you simply disclaim part of her estate, then that part will go to her brother and sister in equal shares; none of it will go to nephews and nieces.

johnc2017

Peregrinus wrote: »

Definitely talk to a solicitor before doing anything (and before talking to your wife's family; you don't want to raise expectations and then upset people if you change your plans, after taking advice).

Generally, if you simply disclaim an inheritance from your wife's estate and the property concerned then passes under the rules of intestacy to whoever would be entitled if you had not survived your wife, that person will be treated as inheriting from your wife.

But if you disclaim "in favour of Jim", say, then Jim is treated as receiving a gift from you.

The tax consequences for whoever gets the property can be dramatically different, so it's important to know what they will be before you decide how to act. Your wife's family will generally be better off being taxed as inheriting from her than they will be being taxed as receiving a gift from you.

The downside of letting the property pass under the intestacy rules is that you have no control over who gets it. If you simply disclaim part of her estate, then that part will go to her brother and sister in equal shares; none of it will go to nephews and nieces.

Thanks Peregrinus. I had been hoping to complete the probate process without a solicitor as her estate should be quite straightforward, there's only a couple of bank accounts and a small pension(which isn't included in CA24 I believe). So I don't think there is any way to disclaim part of the amounts in the bank accounts to defer to someone else. I'm still unsure of whether her brother and sister will get anything, but definitely her nieces and nephews will. Haven't discussed any of this with her family as of yet. Seems as if the only way to approach this is if claim everything and then gift to said persons. Maybe I should contact a solicitor

Peregrinus

You should definitely see a solicitor. Nobody will thank you for administering the estate in a way that lands them with a tax bill that could have been avoided.

You don't necessarily need to get the solicitor to act for you in the adminstration of the estate; you can make that decision after you've spoken to the solicitor. But you do need tax advice on the various options that are open to you.