One of the first questions asked when it comes to dealing with the deceased’s finances is what I need to do to find out for sure if probate is necessary. It is often thought that probate is not required if: 1) There is a Will – perhaps the assumption is that probate is used to deal with thing in this instance. 2) There is no Inheritance tax to pay because the estate’s value is below £325000. 3) The Will is not being disputed – everyone is in agreement on how the estate is to be dealt with/divided. and 4) The Will… read more →
An ‘excepted estate’ is one where there is no Inheritance Tax due. In practice this means the value of the estate is below current inheritance tax threshold because the individual or combined spouse/civil partner Inheritance Tax allowance(s), or charity exemption, bring the estate below the inheritance tax nil rate band. These estates must also be less than £1,000,000 in value. There are 3 situations where an estate is regarded as an excepted estate. 1 The estate is of low value. Currently the Inheritance Tax allowance for an individual is £325,000. If value of the deceased’s estate is below this amount,… read more →
One of the most important tasks for the executor is dealing with the estate’s finances. It may be, as part of this process probate/letters of administration will be required. This will involve a return to the Revenue either on an IHT 205, which provides a brief summary of the decease’s assets and liabilities or on an IHT 400 which requires a more detailed account of them. When it comes to obtaining probate, the executor can, of course, choose to use a solicitor. However this may be regarded as unnecessary and expensive. When dealing with the estate’s finances DIY probate may… read more →
Valuing assets in the deceased’s estate is one of the most important jobs the executor or administrator has. It is the basis upon which an estate is assessed for IHT purposes. What assets should be included in any valuation? Everything, including property, land, cash in banks and building societies, shares, valuables for example jewellery, collections of art, coins & stamps and cars etc. All valuations are assessed on the date of passing. It’s worth noting that HMRC may challenge any valuations they disagree with so it’s important to provide a reference as to how they were arrived at. Valuing assets… read more →
A gift with reservation occurs when an individual makes a gift of an asset during their lifetime but continues to benefit from it. The most common example of a gift with reservation arises when someone gives their property away but continues to live in it. Spurred by the concern about property being used to fund long term care it is often suggested that the family home is transferred into the names of the children. It should be pointed out that this is not always a good idea as what happens to the property now depends on the children’s circumstances. If… read more →
Most people consider self applying for probate because of the anticipated cost. They have heard stories of probate taking many months if not years and where costs are unpredictable and have run into many thousands of pounds. It must be said these concerns are well founded. Traditionally solicitors and banks have charged estates by the hour, which is an open-ended contract, or a percentage of estate which can lead to the cost for probate being expensive. However, there are several new probate providers who offer services by qualified solicitors at a fixed cost based solely on the work involved. So… read more →
The Residence Nil Rate Band is an additional inheritance tax allowance associated with estates that include a property or a share of a property. This additional tax allowance was implemented by HMRC back on the 6th of April of 2017 and allows for executors to potentially claim up to £100.000 which can be added on top of the current Nil Rate Band of £325.000. HMRC has announced that the Residence Nil Rate Band will gradually increase in increments of £25.000 with the passing of each financial year, reaching the maximum of £175.000 by 2020. This is designed to accommodate for… read more →
Executors should avoid withdrawing any funds from the deceased’s bank account even if they have a signed check or debit card with pin. They should inform the bank as soon as possible that the account holder has passed away and provide a copy of the death certificate. The deceased’s bank accounts are part of their estate and will either be paid directly to the executor or frozen awaiting a grant of probate. There is one exception, the money to pay for the funeral. This can be accessed immediately by obtaining an invoice from the funeral director and sending it to the deceased’s bank. Executors should not allow the attorney/representative… read more →
Inheriting and how it could affect your benefits. The question is often asked, “will an inheritance affect my benefits” The answer is in all probability yes! Receiving an inheritance may well result in the loss of an individual’s entitlement to benefits. Most benefits are means tested. This means that once income and savings exceed a certain threshold benefits reduce and eventually cease. The thresholds are quite low. For example an inheritance of over £16,000 could invalidate a claim or significantly reduce the amount of benefit received. In effect an inheritance becomes a substitute for benefits. Where an inheritance is received it… read more →
Resealing a grant of probate is a requirement for estates that include assets of a foreign jurisdiction. When a person is domiciled abroad and has assets in the UK, for example a property, the problem arises as to how to deal with the UK assets when they pass away. It is often the case that the grant of probate issued by the court local to where the deceased passed away will not be recognised here in the UK. In order to deal with these assets, one possibility would be to obtain another grant of probate in the UK to deal… read more →
What is the tell us once? How can it help me Tell us once is a free service offered by most local authorities on behalf of the DWP (department of work and pensions). It allows you to report a death to multiple Government organisations all at once. How do I use the tell us once service? To use the tell us once service you must first register the death. Once the death has been registered your registrar will inform you if the service is available in your area and the give you the option to use it. Some registrars will… read more →
A trust is a way of managing assets, movable (savings, investments) or immovable (land, property), for the benefit of a third party, the beneficiary. It is a legal and financial arrangement which can be used during a person’s life, or as a tool to help manage their affairs once they pass . Tax implications should be discussed with an estate planner or a financial adviser prior to taking action. The parties involved in this relationship are: -The settlor: the person who decides which assets to include in the managed fund and how these should be used. The document which sets… read more →
What is the executor’s year? In short, the executor has a year in which to deal with the deceased’s estate. Beneficiaries are always keen to receive their legacies as quickly as possible, but the executor is not bound to distribute the estate before the expiry of one year from the date of passing. The executor’s year is meant to give ample time for all assets and liabilities to be properly identified and to ensure everything is in order before the estate is distributed to the beneficiaries. If the executor takes longer than a year to administer the estate the beneficiaries… read more →
I’m very dissatisfied with my executor! Some thoughts before removing them. Before removing an executor some consideration should be given to whether they are in fact carrying out their duties. These are outlined in what is called “The Executors Oath” which is to be found at section 25 of the Administration of Estates Act 1925. In practical terms their role is to gather in the estate of the deceased, obtain probate or letters of administration if required and administer the estate by paying all creditors and distributing it to the beneficiaries. Executors/personal representatives have a duty to act in the… read more →
September the 15th is pension awareness day. A day to look at the importance of saving for the future. Saving for our retirement may seem tedious at times, it is however is one of our greatest financial priorities, especially as life expectancy is growing and retirements are likely to last longer. The idea behind a pension scheme is very simple: it is essentially a pot of cash that you, and your employer agree to contribute to, which you get a tax relief on and which you can make use of, once you exceed a certain age. Essentially exchanging a portion… read more →
Foreign assets and how they are dealt with is bound to be affected by Brexit. With free movement between EU countries, retiring abroad became popular and many UK citizens bought property in the EU. However, for UK nationals who have foreign assets the decision to leave the EU will mean that carefully constructed retirement plans will be thrown into disarray. At the moment , if you live in one country and have foreign assets such as property/investments in another country which is in the EU, then the EU Succession Regulation known as Brussels IV will affect you. This came into… read more →
Administering an estate which includes foreign assets can be taxing and complicated. Both for cases of British expats, as well as for cases of “non-domiciled” foreign nationals living in the UK, administering an estate with assets overseas will often require professional advice at the pre-planning stage and at the stage of administering and distributing the estate. This is because a person’s liability to personal taxation in the UK is determined on the basis of their Residence and Domicile status, the place where their assets are held as well as the jurisdictional tax agreement between the two countries in question. For… read more →
In the modern world use of the internet and electronic devices has become a staple of our daily routines. We can do almost everything online, through digital platforms we share our memories, through photos and videos, our interests through social media and even our bank details with online shops. As great and convenient as that is, having so much of our lives and personal data online has created new challenges for executors and administrators. Which raises the question, what happens to our digital assets when we die? What are digital assets? With the online world getting bigger every day and… read more →
In November 2018 the government made a proposal for a probate fees increase from £215 or £155 when made through a solicitor, to a sliding scale that would reflect the value of the estate. The government’s proposal for probate fees increase would see estates worth between £500,000 to £1 million paying £2,500 for a grant to be issued, which is 16 times more than what they are currently being charged. Estates of over 2 million pounds see the biggest increase and will face the highest proposed amount of £6,000. On the other end of the scale, the threshold for estates… read more →
Protecting estate funds is part of the responsibilities of an acting executor. Between the months of April and September 2018 financial losses caused by cyber crime increased by 25% according to the latest figures provided by Action Fraud. This means cyber criminals were able to steal £34.6 million during this time. Conveyancing, Wills and Probate has become an attractive target for a specific type of cyber criminal. Probate cases often involve large amounts of liquid cash waiting to be transferred to beneficiaries and this is where these fraudsters are taking the opportunity to divert thousands of pounds of the estate’s… read more →
It can sometimes come as a surprise to find that you have been named as the executor of a persons Will or you may have been aware but are now unable or unwilling to act. What is the role of an executor? An executor is responsible for the administration of the estate of a person who has passed away. This can include a variety of tasks including contacting any institutions involved, applying for probate and distributed the estate according to the wishes in the Will. Depending on the type of estate the complexity of this job can vary dramatically. Estates… read more →
The Financial Conduct Authority has fined Santander £32,817,800 for failing to effectively process and distribute the funds of customers who had passed away. These failings in their probate and bereavement process resulted in 40,428 customers being directly affected by more than £183 million that was not passed onto to beneficiaries. Mark Steward, executive director of enforcement at the FCA, said: “These failings took too long to be identified and then far too long to be fixed. To the firm’s credit, once these problems were notified to the board and senior management, they were fixed properly and promptly. But recognition of… read more →
What is a caveat? A caveat is a legal document that details a warning that a set of specific stipulations, conditions or limitations have been put in place. In relation to probate, a caveat is a notice that certain actions cannot be taken without the person who has placed the caveat (the Caveator) being informed. A caveat is used to prevent further administrative actions being taken until any disputes have been resolved. What affect does it have on an application for probate? A caveat will stop an application for a grant of probate from going ahead for a period of… read more →
What is a letter of wishes? A letter of wishes is a non-legally binding expression of the testator’s personal wishes. It can include requests relating to the testators funeral, possessions or estate administration. A letter of Wishes is in addition to a legally binding Last Will and Testament. It is often used to supply supplementary information to the instructions provided in the Will. What is a letter of wishes used for? Providing instructions for your funeral arrangements This could be your wishes in regards to Burial or cremation, location, decoration or wake. Providing instructions on how you wish for… read more →
Pre-paid Funeral plans are become an increasing popular option with around 1.3 million people in the UK having one in place. With the costs of funerals increasing every year it is easy to see why more and more people are opting to lock in a good price for their funeral now. What are pre-paid funeral plans? A pre-paid funeral plans are made up of a predefined set of services (these vary depending on the plan) that most often include either cremation or burial, and a funeral service. These plans are offered at fixed cost that can be paid either upfront… read more →
Probate when there are assets in the UK and Bermuda Why Bermuda? Bermuda is a British Overseas territory, located in the North Atlantic Ocean. Known for its beautiful beaches, sunny weather and for being a well-known tax heaven. Its a popular destination holiday destination for the British. Some, in later life, will even make the move more permanently. For those who make a life out in the sun its easy to forget about the practicalities of owner assets in more than one country. It is important to understand what will happen to your foreign assets upon your death. Knowing the… read more →
When a person passes away their estate needs to be collected, administered and distributed to their beneficiaries. The executor of the estate is responsible for identifying all of the estates assets and their value. An estate will include a variety of different assets. Most commonly a person will hold property, bank accounts and shares. If an estate is subject to probate, the executor will need to obtain valuations for the assets. This is to give the correct information to HMRC. Establishing what shares the deceased had To start the executor should collect the share holding certificates. There are a few… read more →
What is an executor? An executor can be a family member, friend or institution (e.g. solicitor or bank). The testator appoints who they want to administer their estate upon their death in their Will . The executor has the legal authority to handle the deceased’s assets and apply for probate. As well as the responsibility of distributing the estate to the beneficiaries named in the Will. In the case where the deceased left no will, the law dictates who is entitled to become the “Administrator”. The administrator is decided by the “Rules of Intestacy”. These rules place the next… read more →
In order to establish when a deceased’s property can be sold you must first identify how the property is owned. Depending on how the deceased owned their property will dictate if it is necessary to obtain a grant of probate and therefore when the property can be sold. To find out how a property is owned you can order an official copy of the register from HM land Registry through the government website. You can only do this if the property has been registered; some older properties that have not been brought or sold in a long time may not… read more →
The role of executor can be a time consuming, complicated and stressful job so it is not uncommon to feel that you should receive some compensation for taking on the work. However executors are not automatically entitled to be paid to be the executor or for their time spent in administering the estate. When can a non-professional be paid to be the executor? An executor that is a family member, friend or any other none professional is not entitled to be paid for administering the estate. However an executor can also be named as a beneficiary of an estate. The testator… read more →
It is the responsibility of the executor to administer the estate of the deceased and to account for any hidden assets. One of the first steps of administering an estate is locating all of the deceased’s assets. This step can seem easier than it actually is in practice. If the deceased kept poor records, was private about their financial affairs or had difficulty with their memory later on in life it can be difficult to create a comprehensive picture of what assets they owned. Assets that are difficult to locate can be referred to as hidden assets (although you often… read more →
What is a grant of representation? A grant of representation is an umbrella term that can be used to refer to either a grant of probate, letters of administration or both. A grant of representation confirms the executors or administrators legal authority to handle a deceased person’s assets. You may require a grant of representation in order to gain access to assets that a deceased person owned. These assets could be property, bank accounts, financial investments and other possessions. The type of grant you will need is dependent on whether or not the deceased left a Valid Last Will and… read more →
What is probate? The term probate is often used to describe the process of administering a deceased persons estate and applying for a grant of probate. A grant of probate confirms the executors/administrators right to handle the deceased’s estate and is required to access assets held in the deceased’s sole name in order to distribute them to the beneficiaries named in the Will or through the Rules of Intestacy. When does an estate with a surviving spouse/civil partner require probate? When there is a surviving spouse or civil partner it is less likely that probate will be required but does… read more →
What is probate? Probate is a term often used to refer to the process of applying for a grant of probate. A grant of probate is a legal document issued by the government, after a valid application has been made, that proves the executors/administrators right to access the assets of the deceased. Institutions holding assets in the deceased’s name may require the executor to provide a grant of probate before they will release any assets to them. How do I get a grant of probate? To obtain a grant of probate the executor named in the will or if there… read more →
What is an executor and what do they do? An executor is a person named in the Will by the testator with the legal authority to administer the estate upon their death. The executor has the responsibility of ensuring that the assets are administered according to the law and according to the wishes in the Will. It is the executor’s job to protect the estate in the interest of the beneficiaries, manage the administration and apply for probate (if applicable). Every estate is different and some estates are easier to administer than others so it’s important to choose an executor… read more →
Unfortunately there is not a yes or no answer to this question, although we can provide some answers by breaking down the question into what tax type of tax is payable on inherited assets, when it is paid and who is responsible for paying it. Prior to receiving their inheritance a beneficiary is not normally responsible for any taxed owed by the deceased or the deceased’s estate to HMRC. An estate can be liable for any income tax, or any other type of tax the deceased didn’t pay whilst alive, as well as inheritance tax on the estate. The executors… read more →
What is Inheritance tax? Inheritance tax (IHT) is a tax on the estate of a person who has passed away. A person’s estate is made up of various assets; these can include property, money and possessions. Inheritance tax is payable when an estates value exceeds their Nil Rate Band or Inheritance tax allowance. What is a Nil Rate Band? The Nil Rate Band (NRB) is the maximum amount up to which there is no inheritance tax payable on an Estate. Everyone has their own Nil Rate Band which is used upon their death. A person’s individual Nil Rate band allowance… read more →
By Ruth Lythe For The Daily Mail Read the Full Article on the Daily Mail website here. Now the banks cash in on wills: 1.5million families face losing billions because their loved ones were sold rip-off testaments The small print gave the banks the right to appoint themselves as executor This meant they could grab up to 2.5 per cent from an estate in legal fees An estimated 1.5M wills have been written by banks over the past 20 years Grieving families face paying thousands of pounds to banks because their loved ones were sold rip-off wills. Up to 1.5million… read more →
What is inheritance Tax? Inheritance tax (IHT), sometimes referred to as Estate tax or Death duty tax, is a tax that is paid at a percentage rate on the value of a deceased’s person’s estate that is over their inheritance tax allowance. What is a Nil Rate Band? A Nil Rate Band (NRB) is the amount up to which there is no Inheritance Tax payable on a person’s Estate. The current Nil Rate Band is set at £325,000. This means estates that have a total value of less than £325,000 pass tax free. Estates where the total value is more than… read more →
There are circumstances where the executors and beneficiaries of an estate want to redirect some of an estates assets to someone who was not included in the Will. There are many reasons as to why you might want to do this, it could be you believe they were mistakenly left out, new grandchildren could have been born since the will was written, or you are acting on a verbal request from the deceased. Whatever the reason you should consider carefully how you are going to redirect the estates assets. One option would be to distribute the estate according to the… read more →
It is completely understandable wanting to leave a little part of your estate to everyone you love. In some cases leaving a small gift can avoid hurt feelings as it makes everyone feel included which can reduce the likelihood of a hurt relative contesting the will. If you want to give a specific item or amount of money to someone you can do this by writing them into your will as a bequest or legacy. It is important however to carefully consider what you are going to be leaving and to whom. You should take the proper consideration when leaving… read more →
Clearing a loved one’s property can be an emotional and sometimes daunting task, it can be hard to know where to start. When clearing a property there are a few options depending on how much time you have and whether you feel up to the task. The first would be to clear the property yourself, if the property is relatively small or the deceased didn’t own very much it should be relatively easy to do this. For larger properties or if the deceased had a lot of possessions you may want to look into hiring a professional to clear the… read more →
When a person owns a property it is common for it to be left unoccupied after their death. For a lot of people their property will make up the majority of the value of their estate it is important that the executor ensures it is properly protected during the estate administration until it can be passed to the beneficiaries. If the property was held in joint names or tenants in common the remaining owner should contact the insurance companies and make arrangements to keep the home covered. They will need to be contacted as soon as possible in order for… read more →
Being the executor of an estate is not a simple task and obtaining a grant of probate can be a long and complex process. It is almost impossible to predict what complications are going to be uncovered during the administration. One of the more complicated but unfortunately relatively common issues that we come across in this industry is that the deceased was the recipient of an Estate that was never administered and only discovered by executors upon the second death. Unfortunately this is not a complication that can be ignored it and it needs to be handled proactively. The first… read more →
The prospect of paying thousands of pounds in solicitor’s fees is obviously a massive deterrent for executors when faced with the administration of an estate. For executors who need professional assistance looking into the costs involved can be extremely stressful and in some cases they can be made to feel helpless when faced with fees that they personally are not able to pay. It is often misunderstood who is responsible for paying the solicitor and this misunderstanding can cause the executors unnecessary stress thinking they can’t afford the help. Solicitor’s fees are considered almost like a debt on the estate… read more →
The information in this post is referring to Law in England and Wales and therefore is not applicable to the Inheritance procedures of other countries. We’ve all seen the movies, a millionaire businessman passes away and his Will is read out, normally in an extravagant library on a stormy night, to a room of suspicious looking individuals all hoping for a cut, only to discover that he’s left his entire estate to a loyal employee causing uproar in the room. Just like the movies a reading of the will is fiction. There is no such thing as a “formal reading… read more →
Who can be named as an executor? A testator (the writer of the will) may choose whomever they want as the executor of their Will, in most cases the executor will be a family member, close friend, solicitor or bank. It is recommended to choose family and friends over professional executors, read more about why here. The testators chosen executor will be named in their will and upon the testators death will have the legal authority to apply for a grant of probate. It is common for 2 executors to be named in a Will, however there is actually no… read more →
What is a beneficiary? A beneficiary is named in a will or through the laws of intestacy as the recipient of a gift (cash or possession) or an inheritance from the testator’s estate. A testator can choose whomever they wish to be a beneficiary of their estate this includes family, members, friends, organisations and charities. If the deceased did not have a valid will then the beneficiaries of their estate or decided through the laws of intestacy. Beneficiaries have certain rights that are protected by law this is to help ensure that the estate is distributed according to the testator’s… read more →
The earliest form of what could be considered Inheritance tax was first recorded in 1694. “Probate Duty” was introduced in the Stamps Act 1694 as a way to help continue financing England’s involvement in the “Nine Years War” also known as “the War of the League of Augsburg” which had started in 1688. Probate Duty was charged at a fixed duty of 5 Shillings on an estate worth more than £20 and was applied for all personal estates where there was probate of wills or letters of administration. Probate duty remained the same for 86 years until 1780 when Lord… read more →
Whether you are choosing the beneficiaries of your estate or you have recently been made aware you are the beneficiary of an estate, it can be confusing to understand the different types of beneficiaries there are and how that can effect what is being inherited and how it is distributed. The are 2 main types of beneficiaries , the first being a residual beneficiary (sometimes referred to as primary) and a legacy beneficiary, both types have more specific sub sets of beneficiary within them. Residual Beneficiary As the name suggests a residual beneficiary receives the residue of the estate. The… read more →
When you have been given the responsibility of being an executor it is important to understand what your role involves, what your duties and responsibilities are and how it will affect you personally. Once you have fully understood the work involved you can make an informed decision as to whether you are willing and capable to undertake the role. Executors often do not realise how time consuming probate can be and underestimate its complexity. Executors often do not release the extent of their personal and financial liability when administering an estate when they start the process and this can be… read more →
Something that we see often is a misunderstanding of what a power of attorney is able to do once the person has passed away. It is very common for people to believe that they have the same authority to handle the deceased’s financial affairs when they pass away as they did when the person was alive. However this is not the case as Power of attorney becomes invalid upon a person’s death. You should not continue to access and handle the deceased’s financial and legal affairs as you did when they were alive. Once a person dies authority over their… read more →
Not every Estate will require probate in order to be administered. A grant of probate is required to release the assets of a person who has passed away and owned assets in their sole name, worth over a certain value. Estates that are made up of assets owned jointly or of low value often do not require probate and can be administered with little complication. However that does not mean the assets they have do not need to be handled correctly. Property A property that is held as joint owners will not require probate as the property will pass to… read more →
Misunderstanding the will A last will and testament should be a valuable asset to the executor as it expresses the wishes of the deceased and should provide them with instructions on how to handle the estate. Unfortunately in some cases rather than being a helpful guide a will can cause confusion resulting in mistakes being made and disputes amongst executors and beneficiaries. Wills are not always written in a way that is clear to understand and will use words that you would not hear in any other circumstances. The testator may have explained their wishes to the executor verbally when… read more →
Selling a property that is subject to probate Many people will experience the process of buying or selling a property at some point, it is not always a straight forward process but when selling a property that is subject to probate there is added complication. If a property is owned in the sole name or as tenants in common by someone who is deceased it cannot be sold until the deceased’s name has been removed from the deeds. In some cases the property may be the only asset in the estate that requires probate as for most people a property… read more →
‘I was cut out of £300,000 estate by Dad’s second wife’ Stuart Herd was cut out of £300,000 estate by his dad’s second wife when she decided to rewrite her will after her husbands death, leaving everything to her own child. You can read the full article here on the Telegraph website. Unfortunately disputes like this are not uncommon and its something that we are asked about relatively frequently. Once someone has passed away it can be very hard to reach agreements and amend a will to reflect verbal wishes or agreements. This leaves only the option of making a… read more →
HM Revenue & Customs has spent years and £100m or more on a super-computer designed to identify those who may have paid too little tax. And now – with the deadline for filing 2015-16 tax returns just weeks away – the system is being fully deployed for the first time. Instead of relying solely on information provided by taxpayers via their returns, HMRC’s powerful “Connect” system now draws on information from myriad government and corporate sources to create a profile of each taxpayer’s total income. Where this varies from the information provided by the taxpayer, the account is flagged and… read more →
Hundreds of people gathered to pay their respects to Cranberries singer Dolores O’Riordan whose body is in public repose. Her open coffin is resting at the altar at Saint Joseph’s Church, in her home town of Limerick in Ireland. Fans, many holding white roses and daffodils, lined up outside the church to mourn at her side. O’Riordan’s music was played softly throughout the service and photos of the performer on stage, as well as one of her with the Pope, were placed around the church. A message placed with flowers beside the singer’s coffin read: “The song has ended, but… read more →
According to the government website you should review your will every 5 years. With 59% of British adults not having a will you may think just by having one you’re doing well. However it’s just as important to have an up to date will as it is to write one in the first place, so if there already is one how do i make changes to my will? If you have gone through some major life changes it’s important to ensure you change your will to reflect your new circumstances. Having an out of date will can cause complications in… read more →
Probate forms explained Previously we have gone through the PA series of application forms you will need for probate, if you haven’t already you can read it here. The PA1 form is the simplest in the process. The IHT forms is where it starts to get a little more complicated. This post goes through and explains the forms you will need when applying for a grant of probate for an estate where there is no inheritance tax to pay using the IHT 205. The first thing you need to do is establish which IHT forms you will need, there are… read more →
Probate forms explained The process of applying for probate can be complicated and overwhelming when also dealing with the grief of losing a loved one. There are a couple different ways in which to apply for probate, the make-up of the estate will vary in its complication and this should be a factor in the choose you make when applying. It is advised that if the estate is complicated for example, if there are a lot of assets held with several institutions, a trust to be set up or wound down or inheritance tax is payable, that you seek the… read more →
Wills and Estates made famous by Charles Dickens in his book Bleak House and the fictional case of Jarndyce V Jarndyce. If you went to school in the UK then you will know of Charles Dickens and have probably been forced to read Great Expectations at some point. Although some of us may not have the fondest of memories of his work (and the thousand word essays you had to write about it) it is still relevant today. In Dickens book Bleak house he highlights the effects that contested Wills and Estates can have on a large group of people, something… read more →
Final duties break down the legal differences between Marriage, Civil partnerships, Co-habitation and Common law It is extremely important to understand you and your partners legal standing in the event of one of your deaths, unfortunately it is an issue that is commonly misunderstood or completely unknown for a lot of couples in the UK. Whether you are married, in a civil partnership, co-habiting or common law partners, what happens to your estate upon death is reliant on the legal status of your relationship. Unfortunately not taking the proper precautions can lead to a lot of distress, disputes and even… read more →
DIY wills friend or foe? “Nearly 60% of adults across the UK have no written a will” according to research done by Unbiased.co.uk and explained in an article by this is money. This means that 60% of British adults are leaving their estate to be handled under the governments Rules of Intestacy. In some cases this can leave your loved ones unaccounted for or spark family disputes, if your still not convinced have a read of our blog post do I need a will? So in order to ensure your Estate is handled the way you want means it’s about time… read more →
What is a will? Do I need a will? Yes! A Will is a legal document expressing your wishes in regards to the distribution of your estate including property and other assets. It should set out who you want to manage your estate (the executor), who you want to benefit from your estate and what happens if your beneficiaries were to die before you. It also sets out your wishes regarding the care of children who are still minors. Why do I need a will? It is important to have a will to ensure your estate is distributed according to… read more →
What is a grant of probate? A grant of probate, also known as a grant of representation and in cases when there is no will letters of administration, is essentially just a document granted to you by the g probate office that confirms your right as an executor/administrator and your authority to deal with the deceased’s assets. Who can apply for probate? Executors named in the will can apply for probate either by themselves or with help from a registered professional, for example a solicitor who will apply on their behalf. A solicitor, bank or charity can apply for probate… read more →
Protecting your partner’s interest in preparation for when you’re gone is a high priority. With expensive care fees becoming more and more of a drain on savings, many couples are now looking into ways to protect their assets. Its becoming increasingly common for couples to change the way in which they own property. One way to do this is by changing the type of ownership from Joint tenancy to tenants in common. This can help to protect their assets in the future but how does this effect the distribution of your estate? Joint tenancy Joint tenancy is the most common… read more →
Probate and wills is an expert area of legislation, and within that, is Contentious Probate – legal speak for having a bun battle over an estate. It is not uncommon for disputes to happen after someone has died and there is a variety of things that could trigger a dispute. One of the most common disputes is over the wishes in the will. Now that the testator is no longer around to clarify their intentions or the circumstances that lead to their decisions, if the will is not clearly and precisely written it leaves the contents open to interpretation. There… read more →
What to expect from a DIY Last Will & Testament kit A ‘Last Will & Testament’ kit by Lawpack in a local branch of WHSmith has a ‘save £5’ sales banner and is reduced to £20. How can I resist this bargain? Opening the kit, the first impression is one of disappointment. A double-sided A4 sheet of paper rather than goatskin parchment i expected to be provided to record my dying wishes. However the accompanying 64-page will kit guidance manual is straightforward – though a bit of a chore to read. It includes a few handy examples (half the guide was… read more →
Government plans huge rises in probate fees charged after death Probate fees to increase under a new system could see some pay £20,000 when left estates worth more than £2m by a deceased relative. The government is planning huge rises in the probate fees charged when an individual dies and leaves property to their relatives in a bid to raise an additional £250m a year. The flat £215 fee will be replaced with a new system of tiered charges that would result in some paying as much as £20,000 for estates worth more than £2m. For estates worth between £500,000 and… read more →
When someone has joint bank accounts the funds within the account are generally considered shared and mutually divisible between the holders of the account. When someone dies the remaining account holder may submit the death certificate to the bank and take over ownership of the account and all the funds contained within. The funds will be transferred wholly to that individual’s name. The reason for this being that, at any point prior to the death, either party may have used all of the funds within the account at any given time. However, this also means that the account holder is… read more →
Valuing Shares for Probate: Why You Should Obtain a Professional Valuation When someone dies the appointed executor has a responsibility to administer the estate correctly according to the wishes in the will and the law. One of the executor’s duties is to assess the value of the estate in order to apply for probate. It is important the estate is valued correctly in order to understand what the inheritance tax liabilities are on the estate. Inheritance tax is paid at 40% on the amount of the estate that is over the inheritance tax allowance which is currently at £325,000 for a… read more →
Probate is a word you may commonly hear when discussing the estate and affairs of a deceased person. The word itself comes from the Latin verb probare, meaning to prove, test, or examine something. Probate is the legal process whereby a will is proved in a court of law as a valid document and made as the public record of the deceased. What this means is that the executor of the deceased’s estate must show to the court that all steps have been taken to pay the Crown or creditors any taxes or monies owed, as well as, delivering the… read more →
In the UK the laws governing the execution of a will are very specific in regards to the duties given to the estate’s executor. The executor is the individual who has the responsibility of seeing the terms of the will enacted and that everyone who is meant to have money or property through the estate receives it in a timely manner. He or she will be responsible for paying any remaining taxes or obligations, as well as, sorting through the various property and personal requests of the deceased. The executor of the estate must work within a very rigorous set… read more →
Saga Probate Stop Providing Quotes Is Saga Probate and Legal Services in choppy waters? Things may not be plain sailing at Saga Legal services, in fact it would appear that unlike their cruise ships, SAGA legal services could be sinking under the weight of its own success. The UK’s largest over 50’s insurance provider today stopped offering quotes to potential legal services customers. SAGA was advertising SAGA probate, SAGA Wills and SAGA Conveyancing via Google but today’s absence sparked curiosity and when phoned they advised they were seeking to change supplier and could not quote for my probate transaction. As… read more →
HSBC has advised all of its Will customers that they will no longer be offering the service and that they need to leave as customers or sign up with simplify. In a surprising move HSBC has told its existing will customers they need to appoint new executors as HSBC can no longer act. In typical bank fashion they have also given their loyal customers a deadline to do so and recommended another company to act as executors, Simplify formally known as ITC. Simplify are one of the largest professional executors in the UK and work for many of the the… read more →
By VICTORIA BISCHOFF FOR THE DAILY MAIL ‘When mum died, Lloyds made the grief even harder to bear’: Our writer’s moving account of why big firms MUST change the insensitive way they treat bereaved families. When Victoria Bischoff’s mother Julie died in April, Lloyds were unhelpful They made her call automated service and sent computer-generated letters An insensitive customer service adviser asked a series of intrusive questions and didn’t know the rules about credit card debts Other organisations such as the local council were much better Mum had been a customer at Lloyds Bank for around 25 years. The staff… read more →
Dealing with a will Being named as the executor of an estate can feel like a daunting task as you are entrusted with many responsibilities and have duties you must perform to ensure that the estate is handled correctly according to the law. We know that the process can be overwhelming so here we go through the first important steps of the estate administration, which starts with dealing with a Will. Obtaining the will If the will is lodged in the bank. the executor has to sign for it or acknowledge its safe receipt in writing if it is sent… read more →
Deeds of Variation Budget Announcement In his last budget George Osbourne announced a review of Deeds of Variation and their use in order to mitigate inheritance tax. “I can also tell the House that we will conduct a review on the avoidance of inheritance tax through the use of deeds of variation. It will report by the autumn.” A Deed of Variation is a way of altering a will after the testator has died. Common uses of a variation include changing the beneficiaries in a will from children to grandchildren. As people live longer and often don’t die until they… read more →
Inheritance Tax 2015 Final Duties has taken a look at the manifestos of the main political candidates in order to understand their positions on inheritance tax (IHT) Current Inheritance Tax Allowances The current rate of Inheritance Tax and allowance is £325,000 with 40% tax paid on assets above £325,000. This mean if your esate was worth £500,00 then you would pay £70,000 in tax. Your inheritance after tax would be £430,000. What The Conservatives Promise if Elected We have guaranteed that ISAs can now be passed on to a spouse tax-free, so that from this April they are no longer… read more →
Probate Costs In this guide we are going to take a look at Probate Costs and how they are calculated when applying for Probate. Firstly we should break probate fees down into two category’s. Legal Fees and application or disbursement fees Probate Disbursement Costs A disbursement or application fee is a cost associated with the application process its self. The first fee you have to take into account is the probate application fee. This fee is paid to the registry office when the probate application is made, it is currently £215.00 for a personal application. This fee is reduced when… read more →
Cheap Probate Is there such a thing as Cheap Probate ? Well depends who you ask of course. Probate Fees are just another added expense at a time when you don’t really want to be thinking about cost. Its precisely because of this that its worth shopping around for probate in order to reduce probate fees. Is Cheap Probate Bad Probate ? No not always, the trick to managing probate fees and obtaining probate for the cheapest possible cost is to shop around but not all probate providers are equal. So back to the question is cheap probate bad probate?… read more →
Grant of Probate How Long Does Take? Following a review of 2013 and 2014 Probate transactions carried out by Final Duties panel of solicitors we are able to offer some more detailed answers to the question how long does probate take? During 2013 /2014 the average time from application and the time taken to issue the grant of probate was 24 days. In 60% of the time taken to issue the grant of probate from date of application was only 21 days. It’s important to understand that these numbers reflect only the time from application to obtaining a grant. They… read more →
Don’t let your probate turn into a saga Obtaining a grant of probate needn’t be a Saga. Some people would have you believe its a complicated process that could leave you regretting you started. This need not be true. If you have a few grey hairs and time to spend, if you over 50 or maybe retired you may have the free time it takes to apply for probate yourself and avoid the whole solicitor Saga. In the coming months we will be looking at DIY probate in more detail and understanding how to deliver a great service to your… read more →
About Final Duties Probate Lawyer After the loss of a loved one you will have to organize the funeral and carry out the last wishes of the deceased. Once you start the process you may be surprise when you discover how complicated the whole process of death can be. What if you cannot find the will or no will was made by the deceased? Then what do you do? What is probate and how do I go about completing the probate process? Do i need i probate lawyer? All of these questions and more can be answered by the friendly… read more →
IHT and Non IHT Probate Forms Obtaining a grant of probate and understanding exactly what it is can be very confusing. When somebody dies, a family member or close friend in most cases will need to apply at the probate office for a grant of probate. The grant of probate basically proves if the will, if one is found, is valid or not. Once the will is deemed as valid by a judge then the court can identify the executor of the estate, creditors with claims on the estate and the beneficiaries of the estate. To obtain a grant of… read more →
Filling for a grant of probate can be a very long and difficult process. If you have little or no knowledge about probate it would be wise to consider hiring an expert to help you. Final Duties offers the best probate help and has done for many years. Final Duties also offers valuable information regarding probate on our Website. There you can find a wide variety of information about the entire probate process. Final Duties offers detailed information about all the important documents and items you will need to file for probate. This information is located under the “Probate Checklist”… read more →
There’s no such thing as a free lunch now is there? It’s unlikely when a company offers you free wills that it actually comes for free… Free wills in my opinion are a thing of myth and legend. That’s because more often than not what can seem to be free comes at cost later down the line. Free wills are often toted by solicitors during ‘free will week’ or are given away by charities but if you look a little closer its not hard to find the catch. The charitable free will often features a clause to leave a gift… read more →
On the 27th December 2014 the government launched a digital will archive detailing 41 million wills that date back to 1858. The archive includes the wills of, Author George Orwell, politician Sir Winston Churchill, Codebreaker Alan Turing, economist John Maynard Keynes and the author of the Victorian Classics Great expectations and Oliver Twist, Charles Dickens to name but a few. Members of the public will be able to search the wills database to find out more information about their relatives and lost loved ones. Rather than needing to visit the probate registry and search the archives in person you will… read more →
Whilst the thought of writing a will may not be particularly enjoyable, it is certainly worthwhile, an expert has suggested. Speaking to nebusiness.co.uk, probate specialist for high-wealth individuals Helen Tavroges advised that despite many people opting to put off writing a will, doing so could mean that the people you want to give your estate to could be left without a penny. Acknowledging that by dying intestate, a person’s estate will not go to step-children or live-in partners, even if they wanted it to, Tavroges suggests that families should for get about it feeling awkward or unpleasant and just do it… read more →
With the cost of living increasing and house prices rising it’s no surprise that Young families rely on their early Inheritance. Around one in five Brits have already received part of their inheritance from their parents, according to a new study. Research from Skipton Financial Services (SFS) has suggested an increasing amount of families are turning to their parents for financial support years before they pass away. It was indicated that 16 per cent of under-35s have already received a sum of around £50,000 from their parents. Whilst one in ten have been given a six-figure sum. A report from Myfinances.co.uk says that many… read more →
Inheritance is a taboo subject for the majority of Brits. the majority of Brits will not talk openly about inheritance, according to new figures. A survey by Aviva revealed that 63% of respondents have yet to discuss the subject with their families, despite four out of ten secretly expecting to receive money through inheritance. Talking about how much parents plan to leave in their wills is understandably a sore subject, especially if it leads to the possibility of discussing whether they plan to release any equity from their homes. However despite it being an uncomfortable subject, moneyhighstreet.com reported that 76%… read more →
The cost of dying is now reported to be rising above £7,000. Recent Surveys have shown that funeral costs have risen by 61% over the past seven years, leaving families of the bereaved struggling to cover the costs of funerals. That’s before taking into account any expenses you might incur during the administration of the deceased estate. According to the Direct Cost of Dying Report by Sun life the Costs of dying have risen 20% since 2007, reports and surveys have shown more of us would benefit from a pre-paid funeral and probate plan. The typical funeral costs are now in… read more →
What to expect from a DIY Probate kit Recently I have been noticing more and more adverts for “DIY Probate kit” claiming to be the answer to all your probate troubles! I like the idea of these kits and can see that having all the information you will need in one place would be helpful. Especially if you have little or no knowledge of probate it would seem a good place to start learning. So I decided to look a little deeper into what you will get from a DIY probate kit. After looking around online and in stores, I… read more →
The European parliament has back proposals which will bring in regulation that would change the way succession and inheritance is dealt with across the EU. The inheritance procedure will become much easier as you will be able to elect British law in your will to apply to assets you hold abroad. The New EU inheritance laws should prompt more people to right a will say experts, reported in the law Gazette. Under the new regulations, a British man who settles in France, for instance, could designate in his will that his assets be distributed according to the British laws of… read more →
Probate is a term that is used in several different ways, sometimes referred to as ‘administering the estate’, below is A brief guide to probate explaining the probate process. Probate is the legal process which gives a person the right to deal with a deceased person’s affairs, as indicated in their will. Probate solicitors can help an executor execute their duties and also advise on a living persons will. If the person who has died leaves a valid will, then the executor may need to apply for a ‘Grant of Probate’ from the courts, depending on the assets they owned… read more →
When do you need a Probate professional? when dealing with probate. Applying for probate is a task that many people find daunting, some people do successfully apply for probate themselves and some people don’t have the time to give up to the hours of paperwork and others simply don’t feel confident in their knowledge of probate. Probate can be very complex and even the smallest of estates can take between 6-9 months to complete. Some people may have experience of dealing with probate in the past and are well aware of the obstacles that may arise and others wouldn’t even… read more →
Are you fully prepared for retirement, Have you thought about what could happen? You need to Plan now Not later. New stats below show. Do you have anything in place to make sure those closest to you are looked after later on in life? In May 2012, the BBC reported that of the 29 million people employed within the private sector, only 3.2 million of those employees contributed to a workplace pension. The same report also stated that the number of individuals making use of company pension schemes has halved since 1991. Thanks to modern lifestyles and advances in medicine,… read more →
We spend our whole lives working and saving money only for are relatives to get a bad deal upon our death. Inheritance tax has been falling in real terms for 3 decades. The value Of Inheritance tax reliefs has been cut by a 3rd because the government has not raised it to be in line with inflation. This is not good news for the savers and their relatives. Peter Goodman, partner at Wilkins Kennedy, says: “Simple reliefs such as the annual allowance on transfers or gifts are very popular, but £3,000 doesn’t go as far today as it did in… read more →
A Grant of probate and a grant of letters of administration are both forms of grants of representation. A grant of representation is an official document with a stamp in the lower right-hand corner. It shows the person who has died – name, address and date of death, the total value of his or her estate and the names and addresses of the personal representatives. The grant is proof that the personal representatives have authority to deal with the estate. Typically, it is required before the personal representatives can collect funds, sell property and so on. To obtain a grant… read more →