DMBM585320 - Pre-enforcement: consider the defaulter: deceased customers: insolvent estates

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Insolvent estates

If the estate is insolvent and there are assets, they should be realised and a dividend paid to estate creditors. Generally an estate is only administered if there are funds. See DMBM585280 for un-administered estates.

Formal administrations

When an order has been made under the Administration of Insolvent Estates of Deceased Persons Order 1986 the case will be dealt with by either:

  • the Insolvency Claims Handling Unit (ICHU) for direct taxes
  • the National Insolvency Unit (NIU) for indirect taxes.

ICHU will:

  • lodge a claim in the normal way
  • advise Estates & Trusts Office/Bradford Enforcement Unit as appropriate of their action, as in INS1704.

NIU will:

  • lodge a claim for any VAT or other indirect tax debt
  • advise Estates & Trusts Office/Bradford Enforcement Unit as appropriate of their action, as in INS1704.

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Informal administrations

The personal representative should administer the estate according to insolvency legislation and acknowledge HMRC바카라 사이트™s claim.

If the personal representative tells you there are insufficient funds in an estate and either:

  • makes an offer of part payment
  • advises you the estate is insolvent but there will be no formal administration
  • ask them:
  • for details of the estate바카라 사이트™s assets and liabilities
  • for details of any property jointly owned by the deceased before they died
  • if a payment will be made pro-rata with payments to the other creditors.

If it is clear that the estate is insolvent and there is no formerly jointly owned property:

  • allocate any payment as in DMBM210110Ìý
  • write off the balance Type 2.

If you have evidence of formerly jointly owned property, see DMBM585285.