Administration of Estates

Executors who are appointed under a will usually have to obtain a grant of probate before they have authority to deal with the assets in an estate. The procedure for obtaining a grant of probate will vary depending upon the nature of the assets and their value.

If an estate is "excepted" (i.e. the value of the assets and relevant lifetime gifts is under a certain figure) then executors should only have to complete a short form Inland Revenue account, then sign an oath before forwarding the will, account and the oath to the Probate Registry. A fee will be payable to the Probate Registry and a grant of probate should follow within three to four weeks. Once a grant of probate is received then the executors have authority to deal with assets within the estate and can proceed with the administration.

If the estate is not "excepted", then in addition to the above, executors will need to complete a detailed Inland Revenue account and pay any tax that may be payable on the death. There are stringent penalties imposed upon executors by the Inland Revenue if the executors fail to include in the Inland Revenue account full details of all assets.

Intestacy

If you die without having made a will then you are said to have died "intestate". If this happens then the laws of intestacy govern who is to inherit your estate and this can lead to unexpected and undesired results. For example, if you do not leave a will then:-

• If you are married your spouse will not automatically inherit all of your estate.
• If you are not married your partner will not inherit your estate.
• You will not have made any provision for who should be appointed as guardians for your young children.
• You have not appointed anyone to act as your executor.
• The administration of your estate is likely to take significantly longer to complete than if you had left a will.

Please do not hesitate to contact Mark Burn or Claire Waterhouse in complete confidence if you wish to discuss any matters relating to this area.