When a person dies, the property they leave behind is called an estate. Your will designates the executors who are legally responsible for collecting the entire estate, paying debts and liabilities, and distributing the estate to beneficiaries in accordance with the will. The estate application fee is £215 if the value of the estate is £5,000 or more. There is no charge if the property is less than £5,000. It is important that executors receive several court-stamped copies of the estate so they can deal with the owners, and these additional copies of the estate cost £1.50 each. Please note that these fees may increase in the future. If the estate is insufficient to pay all debts, bankruptcy is the estate and there is a prescribed order that executors must follow when settling debts. Division of the estate, as specified in the will or according to the rules of succession. As an executor, you are only acting as a representative. For example, all income from investments in the estate is added to the estate and does not belong to the executors. Similarly, you are not personally responsible for the debts or obligations of the deceased.
However, they are legally obliged to secure the estate for the benefit of the beneficiaries. Richard Guy is a senior partner at Birketts LLP and specializes in the work of private clients, advising on a wide range of matters, including wills and trust formation and administration. Executors are not appointed or cannot or do not want to act. An administrator is a person who is responsible for dealing with an estate in certain circumstances, such as when there is no will or the appointed executors do not want to act. An administrator must apply for letters of intent before dealing with an estate. Many executors and administrators act without a lawyer. However, if the succession is complicated, it is best to seek legal advice. You should always seek legal advice if, for example: Executors must therefore determine who benefits from the will and discuss with them how they wish to preserve the assets of the estate. Some beneficiaries may be happy to receive the assets themselves, while others want everything sold and the proceeds distributed in their will. The executor may require the consent of all beneficiaries if the assets are to be transferred “in cash”. If the will provides for the creation of a trust, executors should consider what to do with the property, taking into account their potential future obligations as trustees. Executors are responsible for distributing the deceased`s estate in accordance with the terms of the deceased`s will.
Since executors are personally liable, it is very important to protect their situation and they should also only consider distributing the estate after at least six (or even nine) months from the date of grant of the estate to ensure that there are no claims from persons who believe that they have been wrongly or wrongly disinherited under the 1975 Act on inheritance (provision for family and dependents) (England and Wales only). For more information about intestate rules, see Who can inherit if there is no will – the rules of intestacy. Yes, in fact, you can have up to four executors to share responsibility, but all decisions must be made jointly. To learn more about advantageous shared rentals and shared rentals, see Buying with someone else in Buying a home. For more information on intestate succession rules, see Who can inherit if there is no will – intestate rules. People who are legally entitled to deal with the estate of a deceased person are usually called executors. In assuming these rights, they also assume certain responsibilities and obligations. These are the same as the duties of administrators (if there is no will) and the duties of personal representatives (which include both executors and administrators). Here we simply call them executors. It is a good idea to appoint at least two executors or a principal executor and a deputy.
However, if the partners are roommates, the surviving partner does not automatically inherit from the other person. Letters of probate or administration are required for the personal representative to deliver to the person who will inherit the property according to the will or estate rules. The property could have a mortgage. There are strict rules about who can be an administrator. If there is a valid will, you can apply for letters of intent if: If there is no will, the people responsible for distributing that person`s estate (called intestate intestate) are usually their next of kin. They are called administrators and their responsibilities are effectively the same as those of executors. Instead of following what is written in a will, they must follow the rules set by Parliament – the same rules about who is entitled to be the administrator. For more information about these rules, see Dying without a Will (intestate).
These are the same as the responsibilities of administrators (if there is no will) and the responsibilities of personal representatives (which include both executors and administrators). Here we simply call them executors: an executor is also responsible for handling the deceased`s financial liabilities. This includes the treatment of the tax situation of the deceased from the date of death until the end of the administrative period as well as the capital gains tax payable on the sale of assets. If there was an IHT liability, it is also important that the executors obtain confirmation from HMRC that there is no further investigation and that the position is settled.
