Future memorial expenses

[bezbak]

Sadly my Great Uncle has passed away with no Will. He has very little in his estate (approximately £6k) and no assets. As I am not able to provide him with a proper funeral due to Covid restrictions I have decided to organise a direct cremation with a memorial when restrictions are lifted. I know that the cremation expenses (£1700) can be covered out of his estate which the bank will pay directly to the Funeral Directors. However, is it possible to then claim for the future memorial service expenses in the IHT205(2011) form? As anything left in his estate will go to the state due to the lack of Will/blood relatives (I am next of kin through marriage), I would like to spend his small amount of money on what he would have liked (I don't think he realised this would have helped with a Will!). Would a memorial bench, a tree and plaque and maybe some refreshments for those attending a memorial be reasonable if it came to the balance of what was left? Thanks in advance for any advice.

[Lee Young]

At a practical level, if the estate is only worth £6,000 then you won't need to do an inheritance tax return as you will not need a grant to administer such a small estate.

[bezbak]

I thought that too but I've been told by one of the banks (he had two with £3k in each) that I need to apply for Letters of Administration and for me to do that HMRC have said I need to complete an IHT205(2011) form. It seems ridiculous for such a small estate and filling in this form is proving to be so complicated!

[AGoodman]

The banks will want the grant as there are no heirs to claim the funds - they would pay it to heirs if necessary.

It doesn't really matter whether you put the figures in the IHT forms or not as there is clearly no tax and HMRC won't care.

Your main issue may be a legal one - getting standing to obtain letters of administration when you are not an heir. Is it possible that there are actually heirs via his grandparents/great grandparents (distant cousins etc)? The list is here: https://www.legislation.gov.uk/uksi/1987/2024/article/22/made or google NCPR 22

You might have looked into this (the right to a grant). If not, it might be worth speaking to what was the Treasury Solicitor, now the Bona Vacantia division (BVD) of the Government Legal Department bvestates@governmentlegal.gov.uk (you might find a phone number but I suspect they hide it). They could help on obtaining a grant and if they agree to a memorial. I would hope/expect so but I don't know their practice.