Administering an Estate
Outline
When someone dies, their property does not pass automatically to the "beneficiaries" (the people named in the Will to receive it). Instead it goes first to the executors named in the Will who will find out:
- what property was left, such as benk accounts, building society accounts, a house, and personal goods;
- what debts may be owing and who has been given what by the Will.
- how much Inheritance Tax ("IHT") is due (if any) and how it can be paid.
When they have established the extent of the property belonging to the deceased (his or her "estate") and made any necessary sales to pay IHT, debts, income and capital gains tax, etc, the executors may then distribute the estate to those mentioned in the Will.
If there is no Will, the intestacy rules apply. These rules establish who should take a deceased person's possessions if they did not leave a Will. The people who deal with the estate are then called administrators instead of executors, but they carry out similar tasks.
This whole process is known as administering an estate. Executors and administrators are both also sometimes called personal representatives.
The duties of executors and administrators
Before the Grant
In most cases it is necessary for the personal representatives to apply to the court for grant of probate where a Will was left, or for letters of administration where there was no Will. This will prove that the personal representative is entitled to deal with the estate.
The duty of a personal representative is to administer the estate properly, and included in the application to the court for the grant is a document recording that they have taken an oath (or affirmed) that they will do this.
Before the court can make the grant, several important pieces of information need to be obtained, such as the value of the estate and whether any IHT may be payable. So there may be a delay after the death while this information is collected and before the Inheritance Tax is paid and the application to the court can be made.
Applying for the Grant
The court may take several weeks to produce the grant document, and once this has been received by the personal representatives it can be used to establish their entitlement to deal with the deceased's property.
A solicitor at King & Co can handle all the procedures relating to the application for the grant and to the paperwork and formatilities following the grant.
After the Grant
Once the personal representatives have funds, either from these bank accounts or from sales of property such as the house, the bills owed by the deceased will be paid, taxes settled, and the remaining property distributed under the Will. This process can take time. The length of time varies significantly depending on the specific circumstances. A year could broadly be described as average for a simple estate. However practical problems may arise during an administration which may mean a longer timescale is more realistic. We will give you a specific time estimate depending on the individual circumstances.
Once the grant of probate is given, the Will becomes a public document. Where an estate is very large a reference to the amount left is sometimes made in a local (or national) newspaper. The original Will is retained by the court. The executors will be given a copy, along with the grant document.
How King and Co Solicitors can advise executors and administrators
- By relieving the executors of the routine work and particularly in dealing with the accounts and records.
- By their familiarity with the steps to be taken in estate administration and ability to deal with standard processes
- By their knowledge of what the executors may or may not do at every stage of the administration
- By advising on the executors' responsibilities adn duties at each stage, and highlighting their options and choices; for example, by advising on which items in the estae should be sold and which retained and advising on prevailing tax provisions.
- By making available their experience to give executors advice and support throughout the administration. Solicitors have more experience of probate work than any other profession.
Why a Solicitor instead of a bank or another professional
Solicitors are officers of the court and have more experience of probate work than any other group: they are controlled by strict professional rules and standards set by the Solicitors Regulatory Authority