Free Legal information and Legal advice
|
At the moment of death the estate of the deceased will pass to the executors appointed in the will. Their authority and that of the Personal Representatives in an Intestacy to administer the estate however is confirmed by the making of a Grant of Probate from the Probate Registry of the High Court. If the Grant is to the Personal Representatives in an Intestacy this will be known as the Grant of Letters of Administration.
If an estate is under £5000 it may be possible to administer the estate without obtaining Probate or Letters of Administration. This may be the case when the main asset is a house held in joint ownership by a husband and wife as joint tenants, and there is little else in the estate. The house passes automatically to the surviving joint owner, not under the Will, but by process of law.
In these cases it may be possible to simply sign a declaration form with a bank or building society in order to transfer the account of the deceased to the PR. Other small amounts could be transferred in a like fashion.
The duties of an Executor or PR can often be considered to fall into 3 categories.
Firstly matters that need to be attended to immediately following the death. These will include amongst many other things:
- Registering the death
- Making the funeral arrangements
- Safeguarding the house, removing any valuables for safekeeping. and providing a contact number .
- Making arrangements for any pets
- Checking the terms of any insurance policies, and advising the insurance company of the death.
- Considering having services disconnected.
- Arranging for post to be redirected.
- Inform Bank and Credit card companies of the death.
The second category of duties will be determining whether a Grant is required and if so applying and obtaining the Grant.
To obtain a Grant of Probate or Letters of Administrations it is necessary to file at the appropriate probate registry the following forms.
1. Form PA1. The probate applications form.
2. Form IHT 205. The Inland Revenue return of assets and liabilities.
Once the papers have been lodged and approved, an appointment will be made for the executor to attend at the Registry to sign and swear an 'Executors Oath'. A fee will then be payable
If any inheritance tax is due, this must be paid before the grant is made.
Once probate has been obtained, the third and final stage of the Administration is to pay all debts of the estate, call in all assets, and then distribute the estate according to the Will.
These duties may involve:
- Finding out what assets, property and investments the deceased owned at the time of death
- Arranging for the valuation of assets and listing them and their current value
- Obtaining details of outstanding debts and bills
- Establishing pension entitlements and other monies due to the estate
- Determining Income and Inheritance Taxes liabilities and making any necessary tax returns
- Ensuring the validity of the will
- Opening an administration bank account
- Calling in the assets
- Paying off the debts
- Distributing the estate in accordance with the Will or Intestacy Rules.
Once this has been done, the PR should prepare accounts of the administration. Typical accounts will show the capital and income derived from the estate, debts paid and contain a distribution account.
Legal-Zone have available a comprehensive guide to the administration of estates. Our Administration of Estates Kit fully explains the process and is an essential guide.to anyone called upon to act as an executor or personal representative.
Go to the Legal-Zone Administration of Estates Kit
