USA/UK IHT Query

[des1]

I wonder if anyone could help with my query.
My father passed away in February 2008, having lived in Maryland USA since 1981. He left a UK will, with my mother (from whom he was divorced in 1991) and myself (his son) as beneficiaries. The executor of the will is a UK solicitor who also wrote the will.
He left assets both within the USA and UK and I appointed an Attorney based in Maryland to deal with the USA assets and the UK assets are being dealt with by the Solicitor (Executor) in the UK.
This situation is still ongoing with an extreme lack of communication between both solicitors in particular the American Attorney.
Having lived and worked in the States since 1981, my father owned a property and had a bank account with his partner who was US Domiciled as Joint Tenants with the right of Survivorship.
The queries I have are as follows :
The American side wished for Probate to be granted within the UK first before they would take it to probate, which the UK Solicitor could only estimate on the USA figures in respect of UK IHT. These figures were over-estimated and a large amount of IHT was paid in the UK.
The American side, after many unknown delays, was taken to probate 16 months after my fathers death and was finally brought to a close in March 2011.
As the American side will not issue accurate figures how can it be established that the correct amount of UK IHT has been paid, and if it has been overpaid can this be claimed back?
As the USA property and joint bank account become exempt from US Tax liabilities (regarding the estate), is it right that UK IHT at 40% is paid on these even though there are no accurate figures and non forthcoming from the American side, or should the final figure established by the US Court be used for UK IHT calculations? The difference here could be as much as £50,000.
Is IHT payable on any currency fluctuations or should it be assets held at the time of death?
Do I have any legal rights on the issue of how long this matter is taking to resolve?
Do I have any legal rights in respect of currency fluctuations, especially in respect of loss of monies incurred due to the length of time this matter is taking to resolve.
Any suggestions or advice would be very much appreciated, and if I do have a case is there anybody out there willing to help?
Thanking you.

[pqtaxation]

What a difficult and frustrating set of circumstances for you. It’s a case study on the (unintended) problems created by multi-national death estates and strikes a chord with me as one of the reasons that I’m abroad (and jet lagged) currently is do with a not dissimilar, but maybe even more difficult, set of circumstances of a deceased, longstanding friend whose English will appointed me his co-executor.

Although you’ve written a long original post there is still much additional information to know before anyone can suggest specific guidance to you.

On the US side you say no estate taxes appear to be payable presumably because there is a much larger estate threshold in USA than in UK. You don’t mention whether your father’s partner in USA, to whom his interest in the US house and bank accounts passed by survivorship on his death, is willing to help you and your mother reduce the IHT liability in UK but presumably not and there is not much goodwill/contact. When you write that “you” appointed an attorney based in Maryland was it technically the English solicitor, as your father’s executor, who did so and who paid that attorney? Did you receive any of your father’s assets that were situated in US and if so what, how and from whom?

On the UK side, it looks like the key question is whether after more than 25 years of living in Maryland US your father acquired a domicile of choice there (did he take out US citizenship or only a green card?) and so was no longer domiciled in the UK (as far as HMRC are concerned), presuming that the UK was his domicile of origin. That would depend on the answers to a series of questions that presumably your UK solicitor has already asked. I take it you understand that liability to IHT is determined by the deceased domicile status and if you father domicile was outside UK only his estate situated in UK (with certain exceptions) is included for assessment to IHT.

From what you write, if your father’s UK solicitor (the executor in of his English will) says your father was UK domiciled and his US partner is not interested in helping you (and your Mum), then it appears hard to see what more actions you can take that would be cost efficient .