An individual who dies without a Will is said to have died ‘intestate’. Inheritance tax payments must be made by a representative, the one who administers the deceased’s estate. If he is named in the will he is called executor, if there is no administrator. As the executor, he will take out a grant of probate; as administrator, letters of administration. A good piece of inheritance tax advice is always to leave a will.
Normally a close relative like a spouse, child or parent will have the legal right to sort out the estate of the deceased. Grants are applied for with the Probate Registry. Solicitors can help you with applying for a grant or you can make a personal application. On receipt of the grant, you become the ‘administrator’ of the estate. The grant provides proof to banks and other organizations, your authority to access and distribute funds held in the deceased’s name. This scheme is referred to as obtaining probate. Another piece of inheritance tax advice is to settle the inheritance tax due on the estate because only then a grant will be issued.
As an inheritance tax advice, it is important to keep track the copies of all records of payment to show you have done everything if HM Revenue & Customs (HMRC) verifies how you come up with the figures. As personal representative, you must keep: a copy of the will and all signed inheritance tax forms; all the documents used to complete the forms; and the required paperwork from the death of a first spouse or civil partner to transfer their unused inheritance tax threshold to the second partner upon their death.
Our inheritance tax advice is for you to keep the following: the letter from HMRC certifying that all inheritance tax has been paid – or you can apply for a ‘clearance certificate’; receipts from any creditors verifying that their accounts have been settled; written confirmation that all beneficiaries have received their gifts; and receipts of all the expenditures you incurred as executor.
Another inheritance tax advice is, because HMRC will verify the copy of these final estate accounts for their files and a copy to each of the beneficiaries, make extra copies of these accounts. Although it is not necessary, it is our inheritance tax advice to keep all documents if there may eventually be a cause to transfer an unused inheritance tax threshold.
When an individual dies without leaving a will, his or her estate will be more difficult to handle. It may take a long period of time – months or even years in some complex cases. Supposed that you need assistance, our inheritance tax advice is to seek a solicitor the soonest possible time. Porterbrown’s financial advisers will give you free inheritance tax advice.
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