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IF YOU NEED TO APPLY FOR PROBATE OR LETTERS OF ADMINISTRATION FOR THE ESTATE OF A DECEASED RELATIVE, PLEASE CALL MARTIN ENGLEMAN FOR GUIDANCE AND AN INDICATION OF FEES
EXECUTORSHIP DUTIES CHECKLIST
1. Secure the assets
2. Insure the assets
3. Calculate what the client owns and owes
4. Is Inheritance Tax due ?
If so, complete IHT 400 and any supplementary forms – instructions alone are 82 pages
5. No Inheritance Tax due ?
An IHT 205 is required
6. Transferable Nil Rate Band / Residential Nil rate Band ?
Both need claiming where appropriate, HMRC will NOT remind if not claimed
7. Inheritance Tax to pay ?
To be paid before Grant can be obtained, thus Executor has no Estate funds at this point
8. Apply for the Grant of Probate (if there is a Will) / Letters of Administration (if no Will)
9. Grant issued
10. Begin Estate Administration
11. Collect assets
12. Sell the property (where appropriate)
13. Pay debts
Including Income Tax
14. HMRC
Await sign off (Can be up to 1 year, or more where IHT planning has taken place)
15. DWP
Await sign-off
16. Complete Estate Accounts
17. Distribute the Estate according to the Will
Tell Us Once is a service that lets you report a death to most government organisations, in one application, to the following organisations:-
When a person dies, somebody has to deal with their estate (property, investments, money and possessions) by collecting in all the money, paying any debts and distributing what is left to those people entitled to it. Probate is the Court’s authority given to a person or persons to administer a deceased person’s estate, and the document issued by the Probate Service is called a Grant of Representation. This document is usually required by the asset holders as proof to show the correct person or persons have the Probate Service’s authority to administer the deceased person’s estate.
The Probate Service forms part of the Family Division of the High Court. It deals with non-contentious Probate business (ie where there is no dispute about the validity of a Will or entitlement to take a grant), and issues Grants of Representation, which are known as either:
These different types of Grants of Representation appoint people known as Personal Representatives to administer the deceased person’s estate.
Go to www.justice.gov.uk/courts/probate/copies-of-grants-wills.
The Probate Service is currently made up of:
There are also a number of Probate ‘offices’ (usually a room in a court or local authority building) which staff attend, as necessary, to allow personal applicants to attend to swear the oath. You can apply yourself or use a legal firm or adviser.
In most cases, the basic process is as follows:
You do not normally need a Grant if the estate:
You should contact the organisation holding the money – eg the bank or building society. They may ask for proof of death – eg the death certificate after the death has been registered. Each financial institution has its own rules – you may still need to apply for a grant.
You can apply for a grant of representation if you are the ‘Executor’ of the will, the person named to deal with the estate.
If more than one Executor is named in the will, the Probate application form and guidance notes explain what to do.
You should contact your local Probate Registry if either:
The deceased’s next of kin, eg the spouse (or civil partner) or children, can usually apply for a Grant of Representation.
If there is no Will, the law decides who inherits the estate.
If you are the partner of the deceased but not married to them (or in a civil partnership) you cannot apply. You are also not automatically entitled to inherit any of your partner’s estate. You should get legal advice to find out about your rights.
If the deceased was separated but not yet divorced (or had their civil partnership dissolved), their spouse (or civil partner) would inherit some or all of the estate, and must apply for the grant.
If you had a joint account with the deceased, the contents of the account may automatically pass to you without requiring a grant of representation. However banks can freeze further transactions on the account, for purposes of risk and fraud management, until Probate is granted.
It is therefore prudent to have suitable cash amounts in separate accounts, so that surviving close relatives of the deceased have ready access to cash for post-death expenses, eg a funeral, as well as everyday expenses, eg utility bills, for the ensuing months of typical Probate administration delay.
What happens to the deceased’s property depends on how it was owned. If the property was:
You can apply for a Grant of Representation yourself or obtain legal advice. There are 4 steps.
You can either:
The Probate and Inheritance Tax helpline can help you fill in the form.
You must also work out how much the estate is worth. Depending on its value, there may be Inheritance Tax to pay.
You must complete an Inheritance Tax form, even if you think no tax is owed.
If there is tax to pay, you normally have to pay at least some of it before a grant of representation is issued to you, see https://www.gov.uk/paying-inheritance-tax/overview.
This should include:
You can pay for extra copies of the grant (£1 each) – this means you can send them to different organisations at the same time.
You’ll need to go to a local Probate office to swear an oath: this is a ‘promise’ that the information you’ve given is true, to the best of your knowledge.
You must bring 2 items of identification with you, typically:
You should get the Grant through the post within 10 working days of swearing the oath.
If it is not possible to issue a Grant, the Probate Service will explain why in writing.
Once the Grant has been issued, you must contact the appropriate organisations administering the deceased’s assets, eg banks, insurance and investment providers, and send them a copy of the Grant. They should then ‘release’ the assets so you can transfer them into the Executorship account.
If the person had a pension, contact the organisation, a surviving spouse (or civil partner) may be entitled to money from it.
Once you have contacted all the organisations, pay off any debts the person owed. This could include:
As the Executor or Administrator you have a legal responsibility to pay off any debts or outstanding payments before distributing the estate. You can use money from the estate to pay any legal fees as part of the Probate process.
Once all debts and taxes have been paid, you can distribute the estate as detailed:
After this you should prepare the estate accounts. These must be approved and signed, by both you and the main beneficiaries.
Obtain legal advice if property is involved as part of an inheritance
If you inherit property, eg from your parents, you have responsibilities and potential tax implications.
You may have to pay eg Capital Gains tax on any profit you make when you sell the property. Obtain advice from the HM Revenue & Customs Trusts & Deceased Estate Helpline. 0845 604 6455 Monday to Friday, 9am to 5pm.
If you already own a home you need to nominate one of your homes as your main home – let your Tax Office know. You can only have relief from Capital Gains Tax for your main home.
You should also register your ownership at the Land Registry, although legally you do not have to do this unless the property is sold or mortgaged.
You need to agree with them whether:
Their right to remain may be stated in the Will, if there is one.
You may have to pay Income Tax on the rental income you make. Get advice from the Tax Office.
If you inherit a property that has a tenant, you have responsibilities as a landlord, especially if you want to sell the property.
Engleman Wills + Powers of Attorney + Probate + Equity Release
On behalf of APS Legal & Associates Ltd, Head office: Worksop Turbine Innovation Centre, Shireoaks Triangle Business Park, Coach Close, Worksop, Nottinghamshire, S81 8AP
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