A relative inherited a large sum of money but died before the money
was actually paid out (some nine months later). What happens to this
money?

On Sun, 21 Sep 2008 17:25:12 +0100, put
finger to keyboard and typed:

A relative inherited a large sum of money but died before the money
was actually paid out (some nine months later). What happens to this
money?

It's part of his estate, and hence goes to his own heir(s).

Inherited property doesn't need to have been physically transferred
(or money paid into a bank account, etc) in order to be owned by the
legatee. Transfer of title is instantaneous on the death of the
testator. All that the process of probate, etc, does is to determine
what has actually transferred.

This is often relevent in the kind of situation where, for example, a
married couple are involved in an accident in which one dies
immediately at the scene and the other some time later. If both were
intestate (ie didn't leave a will), then the second to die - even if
only second by a few minutes - will inherit all the property of the
first to die, and then that property will in turn go to the heirs of
the second to die. If their family circumstances are dissimilar (eg,
if one has other children from a prior relationship, but the other
does not), then the sequence of deaths can significantly affect who,
of the surviving relatives, gets to inherit the money.

Mark
--
"There must be a place, under the sun, where hearts of olden
glory grow young"
http://mark.goodge.co.uk - my pointless blog
http://www.good-stuff.co.uk - my less pointless stuff

On Sun, 21 Sep 2008 17:25:12 +0100, "
wrote:

A relative inherited a large sum of money but died before the money
was actually paid out (some nine months later). What happens to this
money?

It forms part of his estate, and passes according to the terms of his
Will or the intestacy rules.

--
Don Aitken
Mail to the From: address is not read.
To email me, substitute "clara.co.uk" for "freeuk.com"

On Sep 21, 9:05*pm, Don Aitken wrote:
On Sun, 21 Sep 2008 17:25:12 +0100, "

wrote:
A relative inherited a large sum of money but died before the money
was actually paid out (some nine months later). What happens to this
money?

It forms part of his estate, and passes according to the terms of his
Will or the intestacy rules.

--
Don Aitken
Mail to the From: address is not read.
To email me, substitute "clara.co.uk" for "freeuk.com"


There is a reduction in inheritance tax if the inheritor dies within 5
years.

http://www.hmrc.gov.uk/CTO/customerguide/page13-2.htm

Robert

"RobertL" wrote in message
...
On Sep 21, 9:05 pm, Don Aitken wrote:
On Sun, 21 Sep 2008 17:25:12 +0100, "

wrote:
A relative inherited a large sum of money but died before the money
was actually paid out (some nine months later). What happens to this
money?

It forms part of his estate, and passes according to the terms of his
Will or the intestacy rules.

--
Don Aitken
Mail to the From: address is not read.
To email me, substitute "clara.co.uk" for "freeuk.com"


There is a reduction in inheritance tax if the inheritor dies within 5
years.

http://www.hmrc.gov.uk/CTO/customerguide/page13-2.htm

----------------------------------------------------------------------------------------

Firstly this is only for married couples (or civil partnerships). Secondly
this is reduction on the IHT payable because of the inheritors death.

IHT is paid by the estate. Except for transfers to spouse or charity, there
are no reductions for the status of the inheritor.

There is a reduction in inheritance tax if the inheritor dies within 5
years.

http://www.hmrc.gov.uk/CTO/customerguide/page13-2.htm

----------------------------------------------------------------------------------------

Firstly this is only for married couples (or civil partnerships).
Secondly this is reduction on the IHT payable because of the
inheritors death.

IHT is paid by the estate. Except for transfers to spouse or
charity, there are no reductions for the status of the inheritor.

But surely there is still Quick Succession Relief?

"GB" wrote in message
...


There is a reduction in inheritance tax if the inheritor dies within 5
years.

http://www.hmrc.gov.uk/CTO/customerguide/page13-2.htm

----------------------------------------------------------------------------------------

Firstly this is only for married couples (or civil partnerships).
Secondly this is reduction on the IHT payable because of the
inheritors death.

IHT is paid by the estate. Except for transfers to spouse or
charity, there are no reductions for the status of the inheritor.

But surely there is still Quick Succession Relief?

It seems you are right.

I didn't read it properly

Thanks

tim