Dealing with an estate after the death of a loved one can be a difficult and confusing process but having the right information and guidance can make the process less daunting.

A person’s estate is made up of everything they own such as cash, shares, properties, and personal possessions.  It can also include any money paid out from a life insurance policy (if not written in trust).

If the deceased has left a Will and there are appointed executors, the executor/s Will be responsible for dealing with the estate.

However, if there was no Will, executors have not been appointed within the Will or the executors are unwilling or unable to deal with the estate an administrator will need to be appointed. This appointment needs to be made via letters of administration.

There are strict rules regarding who can be an administrator, but this is generally a member of their close family. There is an order of preference starting with the husband, wife/civil partner followed by any children over the age of 18. It is important to note that unmarried partners who have not been named in a Will as an executor will not be able to act as an administrator.

After someone dies it is important that the death is registered and that any benefits they receive, tax and National Insurance is sorted out as soon as possible as money may need to be paid back.

The easiest way to notify the tax office and government offices paying benefits is by contacting the ‘tell us once service’. A reference number will be provided by the registrar when registering the death which makes this a simple process.  This service can also be used to cancel the deceased driving licence and Passport if they had one.

The Executor/Administrator is responsible for dealing with the assets during the ‘administration period’. Through this period, they will be responsible for dealing with things such as:

• Obtaining the Will
• Collecting paperwork relating to assets
• Sending the death certificate to the relevant organisations and ensuring that bank accounts are frozen.
• Preparing a list of assets
• Settling any tax liabilities
• Reporting on the estate value for calculation and payment of Inheritance tax
• Paying any debts, expenses, fees etc
• Dealing with probate (if required)
• Sharing out of the estate

The estate is usually paid out to surviving relatives and friends (the beneficiaries) according to the Will. If someone dies without leaving a Will the estate will be paid out according to certain rules called the rules of intestacy. These may not be what the deceased wanted, and the process can also be longer and more complicated. For these reasons, it is important that everyone over the age of 18 arranges a Will.

What Next?

If you would like any assistance with drafting a Will or dealing with an estate, please contact your usual adviser