The world of Probate can often times be a complex one. Dealing with complex, legal-jargon- filled Wills, the Probate Registry, Inheritance Tax deadlines, and potential contentious claims to Estates.
When you have been appointed as an Executor in a Will, the above is not an exhaustive list of all the things that you need to be mindful of when administering an Estate.
Probate administration is the legal process of managing a deceased person’s estate. It involves identifying and valuing assets, paying any debts and taxes, and distributing the remaining estate according to the terms of a will—or, if there is no will, under the rules of intestacy. A Grant of Probate (or Letters of Administration if there is no will) is usually required to give the executor or administrator the legal authority to carry out these tasks.
If you are unsure where to start when arranging the distribution of an Estate, use the below Do’s and Don’ts for some guidance:
Do’s:
- Speak to a Solicitor
If you are unsure where to begin when with dealing with an Estate, please contact a Solicitor for some assistance. At Oliver & Co, we offer free 10-minute initial advice slots where we can point you in the right direction on how to manage things. You can even go as far as instructing us to assist you with administering the Estate.
- Register the Death and locate the Will
In England and Wales, you have five days to register the death of a deceased person. Whilst it is not necessarily your personal responsibility to register the death as an Executor, it is important that you make sure it is done prior to the 5-day deadline. You will also need to locate the original Will, as this will be needed to apply for a Grant of Probate.
- Pay Debts and Taxes
Whilst you may potentially be under pressure from beneficiaries requesting their share of inheritance, it is important that you ensure that all debts, liabilities and taxes are paid prior to any distributions.
- Distribute the Estate in accordance with the Will
Once you have collated all the assets into the Estate, and all debts and liabilities have been paid, it is important that you distribute the Estate in accordance with the Will.
Don’ts
- Forget About Deadlines
The responsibility to report the value of the Estate and to pay any tax due, falls to you as the Executor of an Estate. Inheritance Tax (IHT) must be paid within six months from the date of death, so it is important that you have an accurate record of the value of the Estate prior to this deadline, so you can calculate and pay any IHT to HMRC. Late IHT payments will result in fines.
- Distribute the Estate to soon
If you distribute the Estate, and a creditor was to request payment that was owed to them, then you as the Executor are responsible for paying this back; not the beneficiaries.
- Forget about additional taxes
Aside from the obvious Inheritance Tax, you will also need to be mindful of Income Tax and Capital Gains tax (if applicable) as these will need to be reported and paid to HMRC from the Estate prior to any distributions.
- Miscalculate the Estate Value
When reporting the value of the Estate, it is important that the figures you provide are accurate. Any miscalculation or misrepresentation can cause issues for the Executor further down the line.
If you are feeling distressed or worried after reading the above, please do not panic. Our Probate Professionals are here to help and answer any questions you may have.
If you wanted to book in for a free 10-minute no obligation chat, or a full Probate appointment, please complete this quick contact form or call the office on 01244 987419 to speak to a member of the team.
