Estates Administration Practical Steps

INTRODUCTION

When someone dies emotions are running high and it is obviously difficult to keep a clear head and know what to do. There are all sorts of tasks that need to be carried out in order to administer an Estate.

Administering an Estate is not an easy thing to do. If an Estate is very straight forward and simple and of low value then an Estate can be administered by somebody on their own. However, many people do not want the worry and hassle and simply instruct a firm of Solicitors to supervise the administration of an Estate and do most of the work. Solicitors will charge for this and their fees will be paid out of the Estate.

We administer Estates effectively and sympathetically at very competitive rates. Feel free to ask for a COSTS ESTIMATE.

STEPS BEFORE OBTAINING A COURT GRANT

Firstly all the deceased’s papers need to be collected together and examined. A full list of the assets and liabilities needs to be prepared.

Common things to check include:

  • Banks and Building Society Accounts
  • Insurance Policies
  • Pension Schemes
  • Stocks and Shares
  • Land and Property
  • National Savings Accounts
  • Personal Assets
  • Jointly Held Property
  • Funeral Account
  • Mortgages and Loans
  • Credit Card and Other Debts
  • Inland Revenue
  • Department of Social Security

Second, letters need to be written to all the authorities (such as Banks, Building Societies, Insurance and Pension companies, National Savings etc) where the deceased had assets or liabilities to obtain details of the amounts owing to or payable from the Estate. Claim forms need to be requested along with details of the authorities own procedures for dealing with matters. All other assets will need to be valued.

Third, once all the above information is collected then a rough summary of the deceased’s assets and liabilities can be prepared.

APPLYING FOR A COURT GRANT

If a Solicitor is being used a formal application is prepared and presented to the local Probate Court. There are various forms to complete some of which are quite lengthy. If someone applies without using a Solicitor then the best way is to telephone the local Probate Court and ask that they send through all the appropriate forms and a guide on how to complete them. If there are any problems then the Court or a Solicitor will help. The Court may want to interview the personal representative making the application.

Once the Probate Court is satisfied that the application is in order then it will issue an official Grant along with a number of sealed copies.

COLLECTING THE ASSETS

Now that the Court Grant is available, arrangements can be made to collect in all the deceased’s assets. This is done by sending a sealed copy of the Grant to the relevant authorities such as Banks and Insurance companies etc, along with any claim forms and requesting that monies due be paid out. Any other assets such as property can, if necessary, be sold.

PAYING THE DEBTS

Any debts and liabilities must be paid from the assets, such as the funeral account, credit card debts, Solicitor’s costs, Inheritance Tax, etc. It is important to advertise for any creditors by placing adverts in the London Gazette and in a local newspaper. Once two months have passed from the date of publication the personal representatives administering the Estate will not be responsible for any future debts although they still remain valid and recoverable from the Estate and possibly the beneficiaries.

FINALISING THE ACCOUNTS

When the full extent of the Estate is known then the personal representatives can prepare final accounts summarising all the assets, liabilities, and to whom the Estate is being distributed.

DISTRIBUTING THE ESTATE

Now the Estate can be distributed to the beneficiaries in accordance with the terms of any Will or the Intestacy Rules. Interim payments can be made to beneficiaries if the personal representatives believe it appropriate. If there are minor children then special trusts will need to be set up.