If you are appointed as an Executor under someone’s Will, you may wonder whether you can deal with the estate and Probate alone or whether you need professional help. There are several reasons why you may want to consider instructing a professional to help you, which are outlined below.
Valuing the Estate
One of the first jobs an Executor has is valuing the estate and reporting it to the Probate Registry and HMRC. If the estate is undervalued, the Executor risks not paying enough Inheritance Tax which the estate may later become liable, possibly even once all monies have been distributed.
On the other hand, if the estate is overvalued, the Executor risks paying too much tax, possibly leaving themselves liable to the beneficiaries of the estate.
By instructing our firm, we can advise you on the best ways to value each asset of the estate to ensure compliance with the law. We can also guide through the process of when an estate has been overvalued and some Inheritance Tax needs to be reclaimed.
Liability of Executors
The role of Executor comes with tremendous responsibility. An Executor is responsible for ensuring all debts of the estate are paid and that all beneficiaries receive their share of the estate. This can be difficult when you may not be aware of all debts or find it difficult to trace beneficiaries.
Our service is designed to protect Executors as far as possible so that every debt and beneficiary is discovered and then paid. We can advise you on how to best protect yourself from any future claims against the estate.
We can also correspond with beneficiaries for you so that all their enquiries will be directed at us rather than you. This can otherwise be a stressful time, especially where there are lots of people to keep happy!
Paying Tax
You may be aware that as an Executor you are responsible for paying any Inheritance Tax due. If you instruct us in an estate, we can ensure this is done as efficiently as possible. We can also advise you what options are available where there is insufficient money in the estate to pay the tax due.
You may not be aware that an estate may owe Income Tax for the period after the person has passed away. If any income, such as bank interest, is earned during the administration period, Income Tax may need to be paid. As part of our services in the administration of the estate, we can ensure this is covered.
Dealing with Complex Estates
Some estates can be difficult to deal with, even if they are not of high value. If the deceased owned a business, foreign property or set up a trust, this can make the estate more complicated to deal with. As a firm, we have many years of experience in administering estates and will be able to advise you as to the appropriate action when dealing with these complex issues.
If you would like to discuss how we can help you with Probate, please get in touch with our Private Client department on 01304 873344 or enquiries@mowll.co.uk. We are available to meet clients at our offices in Dover or Folkestone, or remotely if preferred.