Dealing with an Estate
Following the loss of a loved one the administration of their affairs can seem a daunting task, we outline below the steps that should be taken.
Where there is a Will, Executors are chosen and it is the Executors that administer the Estate. If there is no Will the Intestacy Rules apply and if you are a potential beneficiary of the Estate you may need to be administrator the Estate.
Step 1: Register the Death
The death should be registered within 5 days. To do so you need to contact the local register office which can be found by using this link Find a register office – GOV.UK (www.gov.uk)
You will need to provide:
| Date and Place of Death | Full Name |
| Occupation (prior to retirement) | Date & Place of Birth |
| Your name and address | Details of any spouse |
After registering the death you will be asked if you would like to use the Tell Us Once Service, this will update all government bodies of the death such as the Department for Work and Pensions.
You will then receive a death certificate by post, each copy of a death certificate costs £11 and it is advisable to order 2-3 copies.
Step 2: Arrange the Funeral
It may be that your loved one had a pre-paid funeral plan or had already discussed their wishes with you. Some people choose to include funeral wishes within their Will. If you are unsure speak to a local funeral director who will be able to assist you.
Step 3: Establish The Assets of the Deceased
You will need to begin to gather information about any assets that were held and whether they were solely or jointly owned, this includes for example bank accounts, pensions, investments and property.
Money in joint bank accounts will automatically pass to the other owner(s), you will need to include this in any probate paperwork and inheritance tax calculations.
Should there be any property owned by the deceased and someone else you need to find out how it is owned. If its joint tenants the whole property will pass to the other owner automatically. If it is tenants in common their share will pass under their Will.
Step 4: Establish any Liabilities
Liabilities include:
| Outstanding Bills | Outstanding Mortgages |
| Funeral Costs | Professional Fees |
| Inheritance Tax | Income Tax |
Should the liabilities be more than the assets the estate will be considered insolvent.
Step 5: Total Value of the Estate and any Reliefs for Inheritance Tax
After deducting the liabilities from assets you will have the net value of the estate. If this is below £325,000 then it is likely no Inheritance Tax will payable as the estate will be below the Nil Rate Band.
If however the estate is above £325,000 consider if any of the below reliefs are available:
| Business Property Relief |
| Gifts to Charity (Exempt or will reduce IHT rate) |
| Gifts to surviving spouse (Fully Exempt) |
There are also additional Nil Rate Bands available in relation to the family home or if the deceased was a widow or widower.
Step 6: Is Probate Needed?
Not every estate requires a Grant of Probate it will depend on the assets and who is receiving the Estate.
You may be asked by a bank or other financial institution to obtain a Grant of Probate due to the amount held. Every institution has its own rules so check with them, the majority have bereavement departments to assist.
If you need to obtain a Grant of Probate there is certain papers that need to be completed. You may choose to seek professional assistance with these from a specialist solicitor or advisor.
To obtain a Grant of Probate you will need the original Will.
Step 7: Distribution
Once you have the Grant of Probate and all liabilities and taxes have been paid the Executor can distribute the estate as per the Will.
If you would like any further assistance please contact our Private Client team who will be able to assist.
*This article is provided for general information purposes only and does not constitute legal or any other professional advice.