Responsibilities Of Executors And Administrators
Getting professional help when navigating the estate administration process after someone dies brings peace of mind, advises Rebecca Scaturro of Forbes Solicitors
When someone passes away, who has the authority to administer the deceased’s estate depends on whether they passed away with or without a will. If the deceased passes away with a will, the responsibility falls on the executors named in the will. If the deceased passed away without a will, the law stipulates an order of priority of who has the authority to take on the role of administrator. Executors and administrators are collectively known as personal representatives. The first stage is to establish whether the deceased made a valid will and to locate it.
The personal representatives must then find and value all the assets and liabilities in the estate and notify the financial institutions of the death. Personal representatives could be held liable by a beneficiary if not all assets are located, valued and collected. Financial searches, accessible through legal professionals, can be carried out to uncover unknown accounts.
The valuations of the assets and liabilities are then used to assess whether the estate will be subject to Inheritance Tax, after considering what exemptions and reliefs may be available. Assets gifted by the deceased in their lifetime, including assets which they retained a benefit from, may also need to be included in the calculation for Inheritance Tax. Any Inheritance Tax must be paid by the end of the sixth month after the date of death, otherwise, interest will accrue.
The personal representatives can then apply to the Probate Registry for the Grant of Representation. On the application, the personal representatives sign a declaration to confirm they will collect in the whole estate, keep an inventory of the estate, and a full account of how the estate has been distributed.
The grant, once issued, can then be used to collect in the assets and any outstanding liabilities can be settled. This includes finalising the income tax and capital gains tax position of the estate. Personal representatives can protect themselves from being liable for any unknown creditors by placing a notice in The Gazette (the official public record) and a local newspaper. Claims can also be made against the estate in the six months following the issue of the grant by anyone who believes they are entitled to benefit. To evidence all the financial transactions that have occurred during the administration of an estate, detailed estate accounts should be prepared for scrutiny by the beneficiaries before the estate can be finalised.
HOW WE CAN HELP
Navigating the estate administration process can be a complex and time-consuming process. With the role of a personal representative carrying significant responsibility and the potential for personal liability, the support of a trusted professional brings peace of mind at a difficult time.
Our team of experienced solicitors provides the support required to fulfil your duties as a personal representative, with the legal fees paid directly from the estate. At Forbes Solicitors, we can assist with the complete administration of the estate or tailor our approach to meet your requirements.
Rebecca Scaturro is a Solicitor in the Wills, Probate, Tax & Trusts Department at Forbes Solicitors.
For further information or assistance, please contact the team on: 0333 207 1130