PROBATE AND THE ADMINISTRATION OF ESTATES
Many of our clients in fact name us as their Executors in order that we can use our specialist knowledge to ensure that all aspects of their Estate are dealt with swiftly and correctly.
We can provide a full range of services, from dealing with the complete administration of an Estate on behalf of the Executors or Administrators to simply advising on or assisting with any specific aspect of the Estate which may be causing difficulties. In addition we can just apply for and obtain the Grant of Probate or Letters of Administration.
There are several important considerations for Personal Representatives:
Grant of Representation
Unless the Estate value is low, in order to prove entitlement to collect in the deceased's assets, the Executors named in the deceased's Will will need to obtain a 'Grant of Probate' if the deceased did not leave a Will or if there are no Executors for some other reason, the deceased's relatives will need to obtain a 'Grant of Letters of Administration'
Liability for Loss
Personal Representatives are legally required to perform their duties with 'due diligence'. If you take on the role of Executor or Estate Administrator, you are liable to the beneficiaries for any loss resulting from wrongful use of the deceased's property, or for negligence or maladministration
Valuation of Assets and Liabilities
Executors will initially need to take the necessary steps to obtain details of the
deceased's assets and liabilities and, for some assets, arrange appropriate professional valuations. Accurate valuations are required in all cases by the Inland Revenue, not just in estates that are taxable
Insurance and House Clearance
Personal Representatives should arrange for the clearance of the deceased's house and obtain insurance cover for their assets. They should take into account relevant provisions in the deceased's Will and wishes expressed by the beneficiaries
Preparation of Inland Revenue Accounts
Inland Revenue Accounts are now required in all applications for a Grant of
Representation. Depending on the value and nature of the Estate assets, it may be necessary for Executors to prepare full Inheritance Tax Accounts and lodge them with the Inland Revenue. This may also involve calculation of inheritance tax due, arrangement of bridging finance to pay the tax and subsequent negotiation of Valuations
Collection of Assets
Executors need to collect in the deceased's savings, investments, land and property as well as personal possessions. Again, they should take into account relevant provisions in the deceased's Will and wishes expressed by the beneficiaries
Payment of Debts
Once assets have been realised, Executors should pay the funeral expenses and all other outstanding liabilities of the Estate, including any taxes remaining due.
Revenue Clearance
Clearance needs to be obtained from the Revenue in relation to inheritance tax, income tax and capital gains tax (if any).
Distribution of the Estate
After assets have been realised and liabilities settled, Executors should distribute the remainder of the Estate in accordance with the terms of the deceased's Will, or in accordance with the laws of 'intestacy' if there was no Will. They must ensure that relevant assets are properly and legally transferred into beneficiaries' names and should provide clear and detailed accounts which show how the Estate assets and liabilities have been dealt with.
Continuing Trusts
Continuing Trusts could arise from the deceased's Will or as a result of the laws of intestacy, for example, where the beneficiaries include children under 18. In such circumstances, Executors or Administrators then become Trustees and must invest and administer the assets in accordance with the relevant rules of Trusteeship until the Trust has been correctly brought to an end
Estate Disputes & Claims under the Inheritance (Provision for Family and Dependants) Act 1975
If you have not benefited from the deceased’s Will or as a result of a deceased’s intestacy and feel that you should have had provision made for you,in certain cases you may potentially have a claim for financial provision. Our litigation department will be able to advise you in relation to the merits of any potential claim.
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