Important Considerations – Administering and Distributing an Estate
If the deceased has drawn up a will, administering and distributing their estate is generally very straightforward.
There are, however, naturally exceptions, most notably when a will is disputed. There are a number of grounds on which a will could come under dispute, most notably undue influence, fraud, invalid procedure or mental incapacity at the time of the creation of the will.
However, if no will has been left by the deceased, the law decides who inherits their estate. This is known as ‘Intestacy’ and it’s usually the spouse, civil partner or children of the deceased who the law will decide upon as the beneficiary or beneficiaries.
Probate
If the deceased hasn’t already appointed an individual or a solicitor as the executor of their will – or none of the named executors are able or willing to take on the responsibility of administering and distributing the will – the local probate registry should be contacted immediately as they’ll be able to tell you what needs to be done.
If you believe that it should be you who’s given the legal right to deal with the deceased’s will and distribute their estate, you can apply for what’s known as a ‘Grant of Representation’ – this is also known as a ‘Grant of Probate’ or ‘Letters of Administration’ – which provides you with the right known as ‘Probate’, which is essentially the right to administer the will of the deceased.
It’s mandatory to search for a probate record before applying for a grant of representation and the form that needs to be completed is the PA1S form which is accessible online.
After being granted probate you have the right to administer and distribute the estate of the deceased, though you also have the option of appointing a solicitor. The person appointed to administer and distribute the estate of the deceased is known as the ‘Executor’, with executors appointed by the deceased in their will known as ‘Executors Nominate’ and executors appointed by the court known as ‘Executors-Dative’.
The Duties of the Executor
There are a number of important duties that the executor is responsible for and for this reason it’s advisable to appoint a solicitor as the executor if there isn’t a family member who’s capable of collecting the property of the deceased and administering it in accordance with the law.
Moreover, it’s important to understand that if the executor fails to administer the estate of the deceased in accordance with the law and to standards expected of a judicious individual, they may be held personally liable for their failings.
The Process of Administering and Distributing an Estate
With certain exceptions naturally, the process of administering and distributing an estate follows the same process with few deviations from what has become a rather standard process.
- If the estate of the deceased is valued at over £325,000 inheritance tax must be paid before the estate can be distributed.
Paying inheritance tax is an integral part of applying for a grant of representation and always precedes the distribution of the estate of the deceased.
- The estate of the deceased is collected – this includes the sale of their properties, the collection of the funds in their bank accounts, the sale of stocks, shares and investments, etc. – by the executor.
- Any outstanding debts – bills, credit cards, personal loans, etc. – the deceased has incurred must be paid before their estate is distributed.
- The estate of the deceased is distributed in accordance with their wishes to the beneficiaries, i.e. the people named in the will of the deceased.
Joint Accounts and Property
When administering the will of the deceased, if it transpires that the deceased held joint accounts with other individuals – not necessarily those named in the will – the funds in joint accounts immediately pass onto the joint account holder and no grant of representation is required.
Joint property is trickier to administer and distribute because it depends on how the property is owned – ‘Joint Tenancy’ or ‘Tenancy in Common’ – so the Land Registry will need to be contacted and it will likely also become necessary to seek legal assistance from a law firm that specialises in the administration of estates if legal representation hasn’t already been arranged.
Author: Jeff Campbell is working on a freelance basis for a company that boasts of being more than just a law firm. Hanne & Co strives to provide the same level of client care to all who transact with them.
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Category: Law, Uncategorized
