Category: Probate News

by Sarah Ashcroft

While the initial reaction to the death of a close friend or relative will clearly be shock and grief, it will not take long for Britons to realise that they also face a mountain of paperwork and legal duties, should they be appointed as the executor of the will.

Harvey Jones, writing for the Guardian, has documented the exact responsibilities executors will be handed in such tragic circumstances. He noted that there is plenty for people to get their heads around, so it’s worth doing some homework.

An executor is tasked with gathering all the relevant information and details relating to the estate of the person who has passed away. This means looking into their property, savings, accounts and shares before working out exactly how much the estate is worth.

“Being an executor is quite a responsibility. You may be flattered if somebody asks you to look after their affairs, but make sure you fully understand your responsibilities before accepting,” stated Mr Jones.

The executor will also be required to explore details of all the gifts a person made totalling more than £3,000 in the seven years before they died. The reason for this is that they may now be subject to inheritance tax, should the estate be valued at more than £325,000.

Even in those cases where tax is not due to be paid, there is still a large number of forms that must be completed. It is also worth remembering that Scotland has a different judicial system to England, Wales and Northern Ireland, so the precise requirements vary north of the border.

Dealing with the case fairly and as quickly as possible should be a priority, but the executor will always be responsible for their actions, so taking time to get it right is a must.

In fact, the executor can end up being financially liable for any errors they make during the process, making it a potentially tricky area and one in which it is often best to seek expert advice.

Lawpack has teamed up with probate experts Kings Court Trust to help executors complete their duties. We publish a DIY Probate Kit which includes an expert guidance manual and probate forms for you to do probate yourself.

If you need expert assistance, Kings Court Trust can also manage the probate process for you for a fixed price. Call them on 0800 975 7877 to get more information and free advice.

Related articles

• Executors: what to do when someone dies
• What to do after a death: the next steps
• My friend has died and I’m executor. Do I have to do it?

 

Published on: February 18, 2013

Thousands of British homeowners could be due an inheritance tax rebate, according to research from a financial service provider. An estimated 21,000 estates could be owed an average of £4,260 because the beneficiaries were not fully aware of how the probate system operates.

With around £90 million overpaid by homeowners, how can you work out if you are due something back?

Inheritance tax is based on the value of a property when the owner dies. If it sells for less than the valuation within four years of death, the beneficiary is entitled to claim back some of the inheritance tax paid. It is a little-understood rule that seems to have left many out of pocket.

Because of falling house prices in many parts of the UK, NFU Mutual believes thousands could be in this position. Prices have dipped by around 11 per cent in four years.

Anyone who inherited property from June 2008 to February 2009 and June 2010 to August 2011 are the most likely to be in line for a rebate, the financial services firm says.

Sean McCann, personal finance specialist at NFU Mutual, comments: “Many people don’t realise that they can claim back inheritance tax if the property they inherit sells for less than it was valued at during probate.

“And with house prices generally falling across over the last four years, thousands of people could still be able to claim back any such overpayment.”

The study, which was based on a combination of inheritance tax data from HM Revenue and Customs and monthly house price data from Land Registry, highlights that it is not just the person making a will who needs to understand the probate system.

NFU Mutual estimated the amount of overpaid tax based on the fall in the value of properties liable for inheritance tax between probate valuation and eventual sale on a month-by-month basis.

• Probate News: Get expert help with the probate process with our DIY Probate Kit. Includes expert guidance and probate forms.

 

Related articles

• How to reduce inheritance tax liability
• 7 steps to saving inheritance tax

 

Published on: June 11, 2012