Leonard Kasler & Company
What to do when someone dies
(20 Things for a Relative to Know)
1. This information is intended to give an idea of the "legal side" of administering an estate, not the other formalities necessary such as the funeral and registering the death etc.2. Look for a Will. There may be a copy Will in the house amongst the deceased papers saying where the original is held. Ask people likely to have been appointed Executors if they know about a Will
3. If no details of a Will can be found in the house, check with Solicitors, Bank and the Central Probate Registry who can hold Wills of living people in safe custody.
4. Whether or not a Will is found, you will need to know the value of the Estate
5. To administer the estate, you will need to get a Grant of Representation – Grant of Probate, where there is a Will and Letters of Administration, where there is not a Will. Without this, the banks etc may not pay out and you will not be able to distribute monies or sell property, although some institutions (banks etc) may pay out small amounts.
6. The people entitled to take out the Grant of Representation need to be identified. These are executors named in the Will or, if no Will exists, the people entitled under Intestacy. (Personal Representatives).
7. If there is a Will, but all the Executors are dead, the residuary beneficiary (ie one who takes the residue) is entitled to take out the grant, which is then a Grant of Letter of Administration with Will annexed.
8. The precise value of the Estate as at the date of death needs to be established, which means details of all assets held.
9. The amount of Debts needs to be established, including mortgages, household bills, credit cards etc. The funeral account is a debt due from the Estate.
10. The value of the net estate determines the amount of Inheritance Tax ("IHT") payable at 40% on everything over £223,000 (for the tax year 1998/99)
11. The Executors are personally liable for IHT – beware before making a final distribution.
12. An Oath for Executors (Administrators, if no Will) needs to be completed and in many cases an Inland Revenue Account.
13. Beneficiaries need to be contacted/traced. If there is no Will those entitled under the Intestacy Rules need to be located or "cleared off" e.g. by a death certificate or signed letter renouncing their rights.
14. The sworn Oath, Will and Inland Revenue Account are then submitted to the Probate Registry. The IHT may need to be paid at this time. There is an option to pay in instalments, if IHT relates to certain property.
15. The Grant will be issued. People named in the Grant will then be able to cash the assets.
16. An Estate Account is opened and money received paid into it.
17. Liabilities are met – it is important to ensure all debts are paid.
18. An Advertisement for Creditors is made to protect the Executors from anyone claiming to be a Creditor after the date specified in the Advertisement.
19. The Executors then distribute money in accordance with the Will or Intestacy Rules
20. Ensure your own affairs are in order, especially if you have inherited. We have a form entitled "Record of Personal Documents and Information". Just ask and we will be happy to send you a copy. This will be a great help to your spouse, daughter, or solicitor - whoever is looking after things after your death.
See our Newsletter on Making a Will
Michael Breeze
Leoanrd Kasler & Company
Sunday, 13. October 2002