In a will there is not enough cash to pay Inheritance tax, beneficiaries, and charities?

Question

Which payee takes precedence?
Can charities be made to wait until an asset is sold before being paid out?

Answer 1

Inheritance tax and other debts that by law must be paid (no matter what the will says) would go first.

Answer 2

Oh dear, it sounds like you have been appointed Executor but have no idea what to do ...

Get a few good books from your local library TODAY, sit down and learn .. or go to a good Solicitor (and pay through the nose)

If the Estate is liable for Inheritance Tax (i.e. it's net value is more than £300,000) or has debts (such as a Mortgage) and insufficient cash is available, assets (usually the house) will have to be sold = the same applies if the Will leaves money to individuals / charities and insufficient money is available.

As others have said, the Solicitors will also have to be paid ...

I believe it is possible for an individual beneficiary to agree to accept items instead of cash ...other 'variations' to the Will might also be made if all the beneficiaries agree ... read up & check it out ..

If the Estate is sort of just a few quid, but no one will accept anything but cash, you might have to send stuff to auction (or put it on eBay) ..

Answer 3

If the value is high enough to pay inheritance tax, then there will be a lot left over for beneficiaries, and charities.
You only pay inheritance tax if there is in excess of £300,000, and it is only paid from the money above the £300,000 so if inheritance tax becomes due, there is more than £300,000 to share between charities and beneficiaries.

You can leave the value of a property to a charity, to be payable once the property is sold.

If it is due, Inheritance tax takes first procedence..
Which of the others takes the next priority, depends on the wording of the will.

Answer 4

Inheritance tax, if applicable is paid by the heirs, not the estate. You probably mean estate tax. That ALWAYS comes before anything. Charities named in the will ARE beneficiaries. BOTH can wait until assets are sold to receive whatever they get. If debts exceed the value of the assets, ALL beneficiaries get nothing.

Answer 5

The government obligations are first, the Lawyers handling the estate, the executor.ix, then creditors, then the charities and finally the beneficiaries.

In this case it looks like the beneficiaries get nothing. But is this an estate of at least 1 million dollars. It is hard to believe if it is (inheritance tax is the cue) that you do not have an Atty handling the estate that could answer your question.

Answer 6

Most of your tax is spent on infrastructure and education not to mention military, police, fire departments, ambulance services...why would you hesitate? Those are things YOU need. Or do you want to have no roads no bridges, stupid children, sick children, al Qaeda telling you what to wear etc... A bare minimum of government funds is spent on welfare cheques. Where I'm from people pay up to 50% income tax and our VAT is 20% and no offence but judging by actual figures that I've researched my country along with the rest of northern Europe has a lot better infrastructure, better maintained roads, better education and healthcare, lower crime rates etc. Generally our people are a lot happier because our surroundings are more sound and clean. That would only be possible through such "high" taxes.

Answer 7

The tax man always gets his cut first. If there is an amount stipulated for charities then they will get their money next. Any other inheritors will have what (if anything) is left.

Answer 8

The Tax man always gets his pound of flesh first.

Answer 9

YES THE TAX MAN GETS ANY MONEY DUE FIRST.
AND AFTER THAT THE BENEFICARIES THE CHARITIES DO NOT EVEN FIGURE IN THE PECKING ORDER

IF NO RESIDUE IS LEFT AFTER TAX AND FAMILY PRECEDENTS THE CHARITIES GET NOTHING THE BENEFICARIES ALSO GET NOTHING. BUT THEY ARE FIRST IN THE QUEQUE AFTER TAX AND FAMILY

Answer 10

The taxman is always first in the queue.