When someone close to you dies, there are a number of practical tasks to be considered and completed. This can make an already difficult time even more stressful, particularly working out what needs to be done and in what order.
Having secured the deceased’s unoccupied property, and obtained the medical certificate needed to register the death, you will need to locate important documents such as birth and marriage certificates, before arranging the funeral, and then ensuring you have located the valid Last Will. The weight of responsibility, not to mention time involved to ensure a Will is properly administered, is significant.
By engaging a Professional Executor, you can significantly lighten the burden while avoiding mistakes for which you will be held personally liable.
Professional Probate and Executor services
For peace of mind that everything will be taken care of exactly as it should be, contact us to find out more about our probate and estate administration services.
Call 0845 519 7585 or 07902 433 775
Alternatively, you can email us at info@heir-tight-wills.co.uk
What needs to be done when someone dies
When someone dies, the Executors appointed under their Will (who then need to sign an ‘Oath’ to confirm they will act), are responsible for ensuring the deceased’s estate is properly dealt with and the intentions set out in their Will are carried out.
The Executor’s responsibilities might include:
- Securing an unoccupied property
- Registering the death
- Arranging the funeral
- Retrieving the Last Will
- Notifying asset holders and creditors
- Opening an account on behalf of the estate
- Valuing the assets in the estate
- Applying to the Probate Registry for the relevant forms
- Completing estate accounts and tax forms Applying for the Grant of Probate and attending the interview at the Probate registry when requested
- Placing a ‘Statutory Advert’ announcing the death
- Paying Inheritance Tax and the Probate fees
- Paying the deceased’s taxes, debts and liabilities and other creditors – in the right order
- Complete stocks and shares transfer forms
- Once the estate accounts have been approved, distribute the gifts and pay the legacies under the Will
- Activating and registering Will Trusts and managing the Trusts unless separate Trustees have been appointed under the Will
- Distributing the estate as per the terms of the Will
Executors have a legal responsibility to the estate and its beneficiaries. They can be held personally liable for mistakes they make, for example distributing assets to beneficiaries before paying the Inheritance Tax (IHT) liability, where if they can’t get the money back, they will be liable to make the IHT payment themselves.
Normally the Executors are also appointed as the Trustees of a Will Trust and can be held liable for the decisions and mistakes they make for the duration of the Trust Period. It is therefore important that Executors seek qualified legal advice from a Professional Executor before starting to act.
What is Probate?
Probate is the legal process of dealing with the deceased’s estate: their property, money, debts and possessions. In all but the smallest of estates, applying for a Grant of Probate is necessary before any asset transfers or distributions can occur.
The Grant of Probate is the legal document that proves the validity of a Will and grants an Executor the authority to administer the deceased’s estate as per the terms of their Will.
Where there is no Will, the deceased’s next of kin will need to apply under a more complicated process for Letters of Administration. This grants them the authority to carry out this process and the estate will then be dealt with according to the Government’s ‘Rules of Intestacy’.
Probate is not always required, but is likely to be needed if the deceased
- had individual assets in their own name with a value exceeding £10,000
- owned a property in their sole name, or as ‘tenants in common’ with somebody else
- benefitted from a Trust in their lifetime
Rachael helped us write our Wills six years ago and then helped us update them recently – she has an amazing knowledge of all the changes to the laws to make sure everything is up to date and covered properly and that the family is well taken care of. She is quick, efficient and a lovely person too. I would thoroughly recommend her.
The Probate and Estate Administration process
Identification of assets
When a person dies the Executors (also known as the deceased’s Personal Representatives) have to deal with their Estate. Their role is to first identify all the deceased’s assets. They need to establish whether assets are held in their sole name or in joint names with another and establish whether the joint assets will pass under their Will (for example, properties held as tenants in common) or to the surviving joint owner through survivorship.
Valuation of assets and Inheritance Tax liability
The Executors then need to value the assets in the estate and establish, via the intended distribution detailed under the Will, whether there is any IHT liability on the estate. If there is IHT to pay this is due by the end of the 6th month after death. So, if the death was in January, the IHT is due to be paid by the end of July.
Probate application
Once the assets have been identified, valued, and IHT situation ascertained, the Executors complete the relevant probate and tax forms and send them with the Original Last Will (which must be in pristine condition to avoid issues, delays, and potential invalidation), to the probate court to apply for the Grant of Representation, which gives the Executors the legal authority to administer the estate.
Estate Administration
Once the relevant IHT has been paid and the Grant awarded, the Executors can begin the Estate Administration process. This involves collecting in all the deceased’s cash and investments, paying their debts and liabilities, making the specific gifts and legacies detailed in the Will. The final task is dealing with the balance (or the Residue) of the estate, distributing the estate to the entitled beneficiaries in the manner detailed under the Will.
This might involve activating a Trust detailed in the Will. This may require setting up a Trustee bank account, changing a property into the names of the Trustees at the Land Registry, and the drafting of Trustee Minutes, Resolutions and Loan Notes. This documentation is extremely important to enable the Trustees to prove what was done and why, to avoid potential claims or issues at a later date.
Expert assistance
Probate and Estate Administration on anything but the very simplest of estates should not be taken lightly and Executors should always consult with a Professional Executor before embarking on the process themselves.
Heir Tight Wills partners with some excellent Professional Executors, so if you find yourself appointed as an Executor under a Will, please contact us first and we will refer you to our partners for an initial free consultation to outline everything for you.
Get the support you need
If you’re an Executor but can’t locate the deceased’s Will, contact us regarding a Registered Will Search.
If you are acting as an Executor for a simple estate, contact us regarding an Asset & Liability Search – to ensure you don’t miss anything and become personally liable.
Call us on 0845 519 7585 or 07902 433 775. Alternatively, you can email us at info@heir-tight-wills.co.uk
