Probate
Specialists in Probate in Stockport, South Manchester & North Cheshire.
Below is a guide to how we can help.
When it is necessary to obtain a Grant of Probate or Letters of Administration, certain steps usually need to be taken by or on behalf of the Personal Representatives. Below are the main stages relating to the service that BJ McKenna and Co Solicitors will provide.
1. Value the estate – We will write to all of the financial institutions where the deceased held accounts to request the date of death balances. It is important to obtain the correct figures so that we accurately report to HMRC and if the estate is taxable, that we pay the correct amount of Inheritance Tax (IHT).
2. Asset and liability search – We can undertake a full asset and liability search to check whether the deceased had any other accounts you are not aware of. The cost of this is £185 plus VAT. This ensures that we do not miss any assets or liabilities and that we report the correct value of the estate.
3. Prepare the application for Grant of Representation – We will prepare the Probate Application and submit the application to the appropriate Probate Registry, together with the Will, if there is one, and the appropriate Inheritance Tax account.
4. Inheritance Tax – We will calculate whether there is any IHT payable if there is any IHT to pay, we would liaise with the personal representatives regarding the best way to settle this and then arrange payment.
5. When the Grant is received – The Grant, once issued, is submitted to the various organisations with whom assets are held in order to start the process of winding up the deceased’s estate. This includes closing the deceased’s bank accounts, selling any shares and closing down any investments. At this point we would also make the arrangements to sell any property the deceased owned. If any of the beneficiaries would like any accounts or assets of the deceased transferring to them in lieu of their share, we would be able to arrange this at this stage.
6. Trustee Act Notices – We can also submit Trustee Act Notices under s27 Trustee Act 1925. This is a process where you as an Executor for the estate place an advert in appropriate newspapers (the London Gazette and a paper local to where your father lived) asking for any potential creditors, or those who think they might have a claim on the estate, to come forward. The notices last for 8 weeks and if anyone does come forward they are dealt with as any normal creditor. Once the notices expire if a previously unknown creditor comes to light and the estate has been distributed you, as the executor, will not be personally liable for that debt.
It does not prevent any creditors from pursuing beneficiaries under an estate, you however, will only be liable to pay back any share of the estate you have inherited as a beneficiary and will have the same liability as the other beneficiaries. If a creditor comes to light after the estate has been distributed and you have not placed the relevant notices then you would liable for the full debt regardless of what you have inherited or what you are able to recover from the other beneficiaries. The notices can be done quite simply for a fee of around £200 + VAT.
7. The liabilities of the estate are paid – Once we have gathered in the estate monies, all the liabilities will be paid.
8. Inheritance Tax Clearance – Confirmation is obtained that tax is paid up to date and there are no outstanding HMRC claims.
9. Tax affairs for the administration period – often an estate is required to submit a tax return for the administration period to report any income received or any capital gains during the administration period. We would be able to deal with this on your behalf and ensure that all taxes are settled.
10. Informing Beneficiaries – Beneficiaries to the estate are notified of their entitlement and asked to prove their identity. Bankruptcy searches and ID checks are performed in relation to them.
11. Estate Accounts – Formal Estate Accounts are prepared to identify the assets and liabilities of the estate which are sent to you as executor to approve. The estate accounts are also distributed amongst the residuary beneficiaries for them to see how their inheritance has been calculated and for them to approve and raise any queries they may have.
12. Distribution – The distribution of legacies and the residue takes place, in accordance with the terms of the Will or the rules of intestacy.
If instructed to deal with your matter BJ McKenna and Co will essentially take over the role as Personal Representative for the estate. While you will remain the Executor or Administrator, we will carry out all of the duties, on your behalf, which are associated with that role.
You can rest assured that your matter is in the safe hands of a skilled professional in this area who will be looking after your best interests as the Personal Representative.
If you have any questions whatsoever regarding the procedures involved in this matter, please feel free to contact us.