A will allows a person to ensure their assets are distributed in a specific way after their death, including personal belongings also known as chattels, property, and money. A will can also assist in telling your loved ones what your funeral wishes are.
But what is this process? What does it mean for those, in particular the executor, carrying out the will?
Once a family member has registered the person’s death and has the certificate to prove it, you will need to locate the will. This can be done by checking the deceased’s home or if it isn’t there, then asking banks and law firms they held accounts with if they have a copy. You will need the death certificate here and any proof you have the right to discuss their will with them. If you are still unable to find their will, organisations such as The National Will Register, local branches of The Law Society, or the Society of Will Writers, they can also help will checking for a newer version of the will. Be mindful that it is common for testators to change their Will, and some do frequently as they get older or if their assets or family circumstances change. Executors have a legal duty to act in the best interests of the Estate and beneficiaries, and must not take any steps for their own benefit, although any reasonable costs incurred in carrying out the executorship role would typically be reimbursable from the Estate.
In order to pay inheritance tax, you need to work out how much the deceased’s assets (things included in the estate) are worth. Executors are expected by HMRC to look into the finances of the deceased for the last seven years. This isn’t exactly true, you will mainly need current valuations of any liabilities or assets and gift records, this is mainly based off of average retention rates of the documents. A solicitor will be able to advise if an Estate is exempt from IHT or how IHT may be properly avoided, for example, transferring a spouses unused allowance in some cases.
The executor is responsible for paying inheritance task so you may wish to instruct a professional as it can be complex, or you can ask banks to use funds from the deceased’s accounts to pay some or all of the tax via the Direct Payment Scheme.
A Grant of Probate is an application for the legal right to deal with a deceased person’s estate and is generally always required unless the Estate has no assets; is of a low value or where a spouse is entitled to inherit, such a property held as joint tenants that will pass to them under the survivorship rule and/or cash is held in a joint account. Most banks or building societies will release funds without a Grant of Probate for certain sums of money, but each institution will have a limit of monies that can be withdrawn without a grant. To apply for this you will need the original will, the death certificate and have already reported the value of the estate to HMRC.
In order to check if the deceased owed any money to any organisations or people, you can place a deceased estates notice for anyone to come forward, showing the effort has been made to find such people before giving the estate to its beneficiaries (those who inherit any assets).
You can then finalise the estate by collecting assets possibly in a new bank account specifically for the estate, pay off any funeral expenses, taxes, loans, mortgages or other debts and beneficiaries if no creditors have come forward unpaid. It is a good idea to keep a record of the accounts in order to summaries them in the final estate accounts which will include: the value of the assets, liabilities such as how much they owed when they died, income received during administration period and expenses within this period, changes in asset value and who inherited what.
For queries or to make a will, contact Summerfield Browne Solicitors for guidance.
