Solicitor Brighton

What should be included in a will?

It is usual to state will inherit property, and what each person will inherit. Equally important is to choose the person who will be responsible for carrying out your wishes and who will act as a executor, possibly as a trustee and guardian to your children if they have no other parent.

You can also use your will to say whether you would prefer burial or cremation and if you would like to be an organ donor. Lastly, effective tax reduction may be an issue.

Who can be an executor?

Anyone over the age of 18 years. Often the executor is a spouse, close relative or family friend chosen, either alone or jointly with one or more others.  When deciding who to appoint you should take into account trust, age, ability to organise, confidence, experience and willingness.

Some people feel there may be difficulty in managing assets  and if so, a professional executor such as a solicitor or accountant are also commonly appointed to be an executor.

It is a commonly held belief that an executor cannot benefit under the terms of a Will – this is not the case. An executor can receive whatever benefit you choose to leave.

What does an executor do?

Executors have a number of responsibilities and duties, including:

• arranging the funeral
• identifying assets and outstanding liabilities
• completing a final tax return
• depending on the type of assets and the size of estate, it may be necessary for executors to obtain a ‘Grant of Probate’ and to pay Inheritance Tax within certain time limits
• arranging the transfer or sale of property
• distributing the estate (assets) to the beneficiaries in accordance with the will
• it may be necessary for  executors to be involved in setting up trusts

How long does it take to get Probate?

This depends largely on whether it is necessary for an Inland Revenue Inheritance Tax Account to be prepared, which is necessary if the value of the estate exceeds the point at which an IHT Account is required. If this is the case, extra work is involved in obtaining valuation of assets.

If the assets of the estate are clearly below the point at which an IHT Account is required, then it may not be necessary to obtain formal valuations and in these circumstances it should be possible to obtain the grant of probate in 4-6 weeks after applying.

In cases where an IHT Account is required, together with valuations, it may take 3-4 months to obtain a grant of probate.

How long does it take to finalise all matters on an estate after probate is granted ?

This can vary between anything from perhaps 8 weeks to 2 years

When can the first money be paid out?

Depending upon the executor’s confidence as to the position on any debts, efficiency and value of the assets it can be possible for distributions to start quickly after probate is granted. It may also be possible for an interim distribution to be made to beneficiaries but executors should eb careful and cautious as they have legal duties.

Are there sometimes delays with probate valuations?

Unfortunately, yes, and this is one area where appointing a solicitor can assist. Some financial institutions do not appear to prioritise such matters and may need to chased formally and firmly. In addition, specialist valuations of assets such as private company shares, assets outside the UK, valuable furniture or paintings, can take months rather than weeks to obtain. If the deceased had made gifts within 7 years of death or was a beneficiary of a trust, the executors must obtain details. HM Revenue & Customs expect the executors to check with members of the family & examine recent income tax returns for evidence of gifts.

What is Probate and what is involved?

Probate is the legal process to administer the assets and debts of a deceased individual, regardless of whether or not there is a Will. Generally, probate is used where the assets or estate of the deceased is worth £5000 or more, though some financial organisations may insist on the provision of a Grant of Probate or Letters of Administration to release any funds. The process of administering an estate and obtaining probate can be time consuming and complex. There are a number of possible legal, financial and tax implications. This is why professional advice is often sought by executors.

The duties of executors commonly include, but are not limited to :-

• Obtaining formal valuations of the deceased’s assets, including property, savings, investments, & insurance policies.
• Preparing a formal set of estate accounts
• Completing relevant inheritance tax forms and paying any Inheritance tax.
• Establishing if a grant of probate is required
• Checking the will is legally valid
• Attending an interview at the Probate Registry
• Opening a Personal Representative’s bank account
• Establishing whether a trust will have to be created
• Placing any relevant Trustee Act Notice(s)
• Liaising with relevant financial institutions who had dealings with the deceased
• Liaising with utility providers, pension providers, and government bodies, i.e. DVLA
• Establishing the extent of the deceased’s debts and paying these
• Distributing assets to beneficiaries after paying any tax and debts
• Preparing a final set of estate accounts