Probate and Estate Administration

What does estate administration involve?

Our Wills and Probate experts understand that probate and estate administration can be sensitive and we ensure that the duties of a personal representatives are completed expediently.

Such duties can be quite difficult and time consuming and include:

• Contacting, amongst others, banks, share registrars, estate agents, valuers, mortgage providers to obtain the gross and net values of the Estate are accurately in terms of the declaration to the Probate Registry and, if relevant, HM Revenue and Customs.
• Assessing what nil rate band(s), reliefs and exemptions apply to the estate.
• Calculating and arranging for payment of any Inheritance Tax liability that is due within the strict time limits imposed by HM Revenue and Customs
• Completing a full account showing exactly how the figures declared to the Probate Registry were calculated, what funds were received by and paid out from the estate, and how the funds remaining are to be distributed to the beneficiaries.
• Considering whether a deed of variation is appropriate. Such deeds can be a very effective way of minimise the amount of Inheritance Tax payable, as well as varying the estate in order to provide for someone who is in greater need of support than that set out in a will or under the rules of intestacy.

FAQs

How long will the administration of an estate last?

It can be difficult to estimate how long estate administration will last as it will depend on the individual estate’s circumstances. A relatively simple estate where there is no Inheritance Tax to pay (e.g. where there are several bank accounts and a freehold property) can take 6 to 8 months to administer). If there are many investments, shareholdings, buy-to-let properties, foreign assets, an administration can take 2 years or more.

Who administers the estate?

If there is a Will, the executors named in it will have the right to administer the estate. However, if the executors are unable to act (if they have died or lost capacity) or if they do not want to, the residuary beneficiaries named in the Will can take over. If there is no Will, then it will depend upon who survives the deceased (a spouse will be the person with the priority, followed by children).

What is the deadline for payment of any Inheritance Tax due and what happens if there is no money to pay this?

Any Inheritance Tax will be payable 6 months from the end of the month of the death. The Inheritance Tax due can be paid directly from the bank accounts (and sometimes other investments) held by the deceased at their death. If the estate is made up of mainly shares or properties, it is often the case that there will be a shortfall. However, any liability relating to shares or property can be paid over 10 years in equal shares, which often means that the money held in accounts is sufficient. However, if there is still not enough, and if none of the personal representatives or beneficiaries are able to pay the shortfall, we can introduce clients to specialist probate finance companies for a loan.

Contact our Wills & Probate specialists today for more advice and to help simplify the process of your estate administration, using 02920 829 100, or by visiting our contact page, or filling out the enquiry form below.