Long Term Planning

There will be a new feature on the website starting in May 2015. Members are invited to send in questions re Long Term Planning, including advice on Probate, Wills, Equity Release and Powers Of  Attorney.

I am delighted to inform members that Jane Cassell of www.jcwillsandprobate.co.uk has very kindly agreed to answer any questions you may have re Long Term Planning.

These questions can involve Probate, Wills, Equity Release, Powers of Attorney and many other issues. To give members an idea, I had an email sent to me last week and I have listed both the question and answer below.

The question is:-

"I wonder if you could clarify something for a member? The member's father recently died, leaving three children (the member and two others) and some of property, including a house that is let out to tenants.

The member is his father's executor and will eventually inherit a third of everything. The member is collecting up all the paperwork and will apply for probate, but in the meantime he doesn't know if the rent from the tenancy should be treated as income for the estate, or as the member's own income that he will need to declare as taxable earnings, since he is receiving it right now?"

The answer from Jane is as follows:-

"That's a great question from your member, and shows he's really thinking about things seriously."

"The income is indeed income of the estate, during the administration of the estate. Assuming the property is retained and continues to be rented after it passes to the three beneficiaries, they will each need to deal with it as a matter of their own personal tax."

"The trigger for the transition from estate to individual beneficiaries, is the transfer of the property to those beneficiaries"

"I should also mention that the pre-death rental income needs to be entered on the relevant IHT account (IHT205 or IHT400 form). However, the entry of the rental income post-death will feature on income tax form R27 or SA100. Once the property is transferred, then it's a case of each individual beneficiary declaring that income as part of their personal income. I should point out that there have been changes to the compulsory requirement to submit an R27 form. This doesn't mean that income information is not required, rather that HMR&C intend to actively ask relevant questions"


Please send you questions to me This email address is being protected from spambots. You need JavaScript enabled to view it. and I will contact Jane. I hope that this will prove to be an informative and interesting monthly feature. I am certainly looking forward to learning and understanding the many complex issues that we all face at some point during our lives.