Administration of Estates
Who is reponsible for the Administration of an Estate?
If a person dies leaving a Will then an Executor is nominated in the Will and will be responsible for winding up the estate. If a person dies without having left a Will the Court will nominate an individual and they are known as an Administrator. Both can be referred to as Personal Representatives
What are the duties of a Personal Representative?
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To register the death and arrange the funeral
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To identify the assets in the estate and obtain Probate Valuations
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Identify which assets are held jointly and therefore do not pass under the Will
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Identify all the liabilities in the estate. Personal Representatives should protect themselves by placing an advert in the local paper and the London Gazette. Creditors then have 2 months from the date of the Notice to lodge a claim against the estate.
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To calculate, if applicable, the inheritable liability and to complete and submit within the 6 months from the date of death the Inland Revenue Inheritance Tax Accounts. In this regards, consideration must be given to the affect of any cumulative lifetime gifts made by the deceased during the last 7 years
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To apply for Grant of Probate (if there is a Will) or Letters of Administration (where there is no Will). Both can be referred to as Grants of Representation.
Grants of Representation
A Grant is a legal document issued by the Court. It proves that the Personal Representatives are entitled to deal with the administration of the estate. It allows the Personal Representative to cash in assets or sell a house and discharge all liabilities.
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Ensure that all of the deceased tax matters have been cleared
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To prepare full and detailed estate accounts and distribute the estate to those entitled
What are the risks in acting as a Personal Representative?
A Personal Representative must act with due diligence otherwise they can be personally liable for any loss which the estate may suffer. Examples include distributing the estate to the wrong beneficiaries; failing to discharge the Inheritance Tax Liability or distributing before ascertaining the full extent of the liabilities.
How long does it take to administer an estate?
This depends on a host of factors which include, the size / value of the estate, whether there is a trust, whether the person died with or without leaving a Will.
Most simple cases can be wound up within the first 6 months, but more complicated estates can take up to two years or more to finalise.
What are the benefits of instructing a Solicitor?
Oliver & Co can substantially reduce the responsibility and work of a Personal Representative at a time when they are probably still grieving for a loved one.
As appointed Solicitors we will obtain the required Probate Valuations; where applicable draft the Inheritance Tax accounts and discharge the liability; attend to the placement of the Advert in the London Gazette; deal with the deceased's income tax status; and make the necessary application for Grant of Representation in order to collect in the assets.
The cost of instructing a solicitor is paid out of the estate and is charged in accordance with the Law Society's guidelines.
Probate Disputes
Probate disputes include matters such as challenging the validity of will or transfers of property; or claims under the Inheritance (Provision for Family and Dependants) Act 1975 for provisions from a deceased's estate. Who should administer a deceased's estate and how to deal with related claims can often involve difficult and sensitive issues.
Oliver & Co can advise on all of these matters and can do so in a helpful approachable and constructive way recognising the sensitive nature of such cases. Oliver & Co will always try to help you find workable solutions to what can sometimes seem like intractable problems in dealing with estate administration and related claims.
Should you require any further advice or assistance regarding the Administration of an Estate, please contact Sally Tipping on: 01244 312306
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