Sometimes known as estate administration, this is about finalising a deceased person’s affairs. This can be a difficult time for those involved which can be exacerbated where a properly drafted Will has not been prepared (check out our Will Service here). Our experienced team work with you to resolve the issues that arise and put affairs in order quickly and efficiently.

Is there a Will?
If there is a Will it appoints people, called executors, to deal with the deceased’s affairs. Although executors derive their authority from the Will they will often need to apply for a Grant of Probate. This is an official document issued by a Probate Registry which enables an executor to prove their authority.

If a Will has not been prepared by the deceased then no one has authority to deal with the deceased’s affairs. Unless you are dealing with a very small estate, a Grant, this time called a Grant of Letters of Administration, will be required to appoint an administrator. Legislation, known as the Rules of Intestacy, set out who can apply to become an administrator and also who benefits from the estate.

The procedure
The following is a summary of the usual steps required to finalise an estate:

1. check if there is a valid Will
2. advertise & conduct a Will search
3. investigate & value the assets and liabilities of the deceased’s estate
4. complete Inland Revenue Account (if necessary)
5. advertise for creditors
6. apply for Grant (if necessary)
7. collect in assets
8. pay off debts and tax (if any)
9. prepare Estate Accounts
10. distribute the estate

Inheritance Tax
This is effectively a death tax which is applied where the value of an estate exceeds a specified sum, known as the nil rate band or threshold. The threshold is set by the Government and for the tax year 2007-8 it stands at £300,000.00. If the threshold is exceeded the excess is charged to Inheritance Tax at 40%.

For the tax year 2007-8 if the value of an estate if greater than £300,000.00 an account must be submitted to the Inland Revenue. The account details the assets and debts of the estate.

Due to increased property prices liability to Inheritance Tax, which previously was a tax only on the very wealthy, has become more common. A potential Inheritance Tax liability can often be reduced or negated by advance planning. For more information click here.

For more information please contact Alan by email: Alan@whatleylane.co.uk or by telephone on 01638 561133.