When a person dies, their estate (i.e. money, property and possessions) must be correctly distributed amongst those people entitled to it. This means collecting money, paying debts and sharing any leftover assets amongst the relatives they leave behind. Prestige Tax and Trust Services understand how confusing these things can be, especially during the difficult aftermath of losing a loved one, so we’ve come up with a brief guide to the process. For more detailed information, please visit our website.
A Grant of Representation is required to prove that the person dealing with the assets has the correct permissions. These grants are known as:
– Probate – a valid will has been left and an appointed executor is dealing with it.
– Letters of administration with a valid will – a will has been left, but no executor appointed by the deceased.
– Letters of administration – usually there is no valid will.
Whoever is named in the Grant if Representation is responsible for the lawful distribution of the deceased’s assets. The executor doesn’t necessarily have to be entitled to any part of the estate.
If the estate is worth over £325,000, Inheritance Tax must be paid. This figure includes all pecuniary assets, including property, business and bank accounts. Some people feel that putting all of their assets into joint ownership with a spouse or child will solve the problem of estate distribution when they pass away. However, it means dividing everything and surrendering full control of your business, banking and property assets, which may turn out not benefit you during your lifetime.
The easiest way to avoid complications is to make a will while you’re still able to. Click here for more information.