What To Do When Someone Dies? Information for Executors And Administrators

Where to start with a deceased person’s property

Before you start to deal with a deceased person’s property it is important to find out whether or not they left a valid Will. A Will may be held by a bank or a solicitor or with the deceased’s personal possessions. A Will sets out how an estate is to be distributed following death.

Where a person dies with a valid Will it is described as a “Testate Estate”. The Estate will be then distributed in accordance with the terms of the Will.

Where a person dies without a valid Will it is described as an “Intestate Estate”. The Estate will be then distributed in accordance with the set Rules of Intestacy.

Entitlement

If there is a valid Will appointing an Executor(s), they are responsible for dealing with the Estate administration. The Executor’s authority to act starts at death. If there is no Executor appointed or an Executor declines to act (due to illness, death or unwillingness), a Will remains valid and the responsibility of dealing with the Estate will be that of a residuary beneficiary under the terms of the Will. Such residuary beneficiary would be termed as an Administrator.

If a person dies without a Will (Intestate) the Rules of Intestacy determines and identifies who has the legal responsibility and beneficiary entitlement under such Rules.

Grants of Probate and Grants of Letters of Administration

Where there is a valid Will and probate is required, a Grant of Probate application is submitted by the Executors to the Court and a Grant of Probate is issued to enable the Executors to administer the Estate.

Where there is no Will, a Grant of Letters of Administration is applied for as above by the identified Administrators.

Where there is a Will but no able or willing Executor, a Grant of Letters of Administration (with Will) is applied for as above by an identified residuary beneficiary.

The term “Personal Representative” is often used as a broad term to cover both Executor or Administrator, similarly a “Grant of Representation” is also used to describe either or any forms of Grant.

The administration of an Estate of a deceased must be administered in accordance with the Law . This involves gathering in of assets, settlement of all liabilities, funeral costs and taxes (including Inheritance Tax, Income Tax and Capital Gains Tax all of any of which may be applicable in an Estate) and distribution of estate funds.

Rules of Intestacy

Whilst joint assets pass to the survivor of such asset on death, it is not correct to always assume that a spouse benefits from all of the assets in the sole name of a deceased.

Where there are children of a deceased, the surviving spouse benefits from the personal effects and a statutory legacy of £322,000.00 (for deaths from 26th July 2023 (increased previously from £270,000.00) and the rest of the estate is divided as to half to the children of the deceased and half to the spouse.

If there are no children of a deceased, the surviving spouse does benefit from the whole estate.

If there is no spouse and no children of a deceased, the Rules of Intestacy and entitlement is determined as to the blood line descendants of the deceased.

Inheritance Tax

Inheritance Tax is considered on Estates which exceed £325,000.00 (net). However, assets passing between spouses are free of Inheritance Tax. Other exemptions are available in certain circumstances, (for example transfer of a late spouse nil rate band and residence allowances).

Inheritance Tax is charged at a rate of 40%. If a minimum of 10% of an estate is passed to charities – if the estate remains taxable, a reduced rate of 36% will apply.

Insolvent Estates

An Estate is insolvent if there are insufficient assets to settle the estate liabilities. Great care and reliable advice should be immediately sought in such matters.

Business Interests

Personal representatives may need to deal with business interests held by a deceased which may include daily management until it can be realised. Administrators may have limited powers that Executors and advice should be sought (Accountant/legal).

Deeds of Variation

Wills can be altered after death provided those affected beneficiaries are in agreement and are over 18 years of age. This can also apply to Intestate Estates to alter a distribution post death to redistribute assets or include other beneficiaries.

Advice and Information – Where can I obtain further help?

At Heald we can assist with all aspects of Grant applications and if required to also include estate administration from verifying assets, grant applications, gathering in assets, settlement of liabilities and distribution of Estates. Heald’s conveyancing department are also here to assist with any deceased’s property sale and work closely with the Probate (private client) department in dealing with probate property sales or transfer of property to beneficiaries.

If our Probate Department can offer any help to you, either on a fixed fee information basis or a full instruction, please do not hesitate to contact our team who will be pleased to help you.