A brief explanation for Ester explaining how Ali’s estate will be distributed
Ali died on a road accident that had involved his family members where his sister Ria, Ria’s son Colin. Before his death, Ali had acquired a couple of wealth to himself, some he had made by himself and other property he had inherited from his late wife. In Ali’s will he had stated how his wealth will be distributed among the mentioned people. Ali noted that he had revoked all other wills that were attached on after his death, the person that will inherit the property (Henrekson, at el 2016). He had appointed his uncle Jonah Smith as the executive on how the will be distributed among the people that he had named. Jonah will oversee every process that will be pertained in the inheritance.
Ali appointed Colin Brown one hundred thousand dollars of fifteen Thorn Drive Bedford that he had built by himself over the years since he was a child. One hundred and fifty thousand dollars was assigned to his solicitor Barbara Patel of eight Edgeware Avenue Bedford he had inherited from his father. Ali stated that five hundred dollars were to be allocated to the Mayor of Kempostonshire. Moreover, the jewellery that he had inherited from his wife he gave it to his wife’s brother as a remembrance of his wife to give back to his blood lineage. Ali also remembered children of his neighbour Donna Green of five Liverpool Gardens Bedford by allocating them fifty thousand dollars. Ali had two godchildren, and he assigned his car to one of them, but he did not specify the name of the inheritor. Don't use plagiarised sources.Get your custom essay just from $11/page
Ali is a good-hearted person he allocated his house at three Liverpool Gardens to the free army of Norway however the eldest child of his friend Fatima Guza of eighteen Liverpool was given five hundred dollars of his wealth. He never left his uncle without any inheritance distribution of his wealth; he gave him his entire estate to his uncle Jonah Smith for life that after his death, the estate will be to my children. The gifted property was offered at goodwill; thus, it will not be given back despite the situations that will arise after the inheritance certificate has been issued. This will was written by Ali Khan and signed on 31st December 2015. Details have to be obeyed and followed as per the late Ali who has presented his property to us.
A brief explanation of what inheritance tax using the figures provided in the letter
Inheritance tax is the tax that is imposed on the estate of someone who has died. In the United Kingdom, there are no inheritance taxes that are paid when the value of the estate is below three hundred and twenty-five dollars of threshold (Stark, at el 2017). Additionally, when you leave all the assets and estate property above three hundred and twenty-five thousand limits to the wife or husband, civil partner, a community sports club or charity. In this case, all estate values provided do not sum up to the threshold value. Thus Ester will report the incident to the Human resource and revenue and customs.
The human resource revenue and customs will determine if the values are taxable or not by having accurate values of the estate. The value is used professionally when they are above one thousand five hundred dollars. The costs will be used if the gross estate value is less than two hundred and fifty thousand dollars where it the case of Ali’s will it is inclusive. Similarly, when all estates passed to the dead person’s spouse or civil partner, charity or organization.
Ester had to apply for the probate that will value the money, property and possessions of Ali. There is a need for all features of Ali being included in the probate because there were few price tags for the property that was to be inherited (Rowlingson,2016). The process of valuing the estate can take six to nine months or even longer depend on how big the estate is. The taxes are paid after six months after the person has died. Ester had to take the process in the human resource revenue and customs for evaluation since Ali did not specify most properties before he died.
The property that is above one thousand five dollars has to be taxed by the human resource revenue and customs. One hundred thousand dollars were given to Colin Brown of 15 Thorn Drive Bedford. One hundred and fifty thousand dollars given to Barbara Patel of 8 Edgeware Avenue Bedford were subjected to tax since they were above the limit of one thousand five hundred dollars that are set by the human resource revenue customs.
For the estate that is valued below one thousand five dollars, the government sets the amount that is supposed to be paid and is called the nil-rate band since it is the amount you pay a nil-rate of inheritance tax (Mumford, 2017). Anything that Ali left behind is subjected to a forty per cent tax. Since about ten per cent of the property, Ali left behind was majorly given to charity it was submitted to thirty-six per cent tax on wealth. The money that is being paid should be made on the close range of the property. Ali ‘s property is payable at the imposition of above one thousand five hundred dollars, and other features that are below are being paid nil returns to the human resource revenue and customs.
The threshold keeps on changing depending on the prices of the economy and sustains targets that are being set by the country. The 2015 tax standard for the inheritance faced the challenge that is why Ali inherited most of his property to his relatives and then returned to his godchildren when the tax rate has risen (Loutzenhiser,2019).
In conclusion, the inheritance policy is lifted after some time to ensure the prices are stabilized and made standard for the better of the inheritors (Lawson, at el 2017). Ester’s child, who was said to inherit the property of Ali after Jordi has died is a gesture of considering the future. It is vital Ester upheld the decisions of Ali as he stated despite her having problems with his relative who was suffering out of cancer.