Deceased's Estates
The death of a loved one is a difficult time both emotionally and financially. There are uncertainties as to who can deal with the deceased’s money and belongings (“assets”), and in some cases who will inherit.
Who is entitled to deal with deceased’s assets and who will inherit?
1. If the person died leaving a Will
The Will itself should name the people appointed to deal with the deceased’s assets. These people are known as the executors of the estate. It will also detail those who are to inherit (“beneficiaries”)
2. If the person died without leaving a Will (Intestate)
The Intestacy Rules govern who is entitled to deal with the deceased’s assets. These people are known as the administrators of the estate. The rules also state who will benefit under the intestacy. This will usually be the deceased’s closest relative/s but will not include the deceased’s partner if they did not marry or enter into a civil partnership.
What is a Grant of Probate / Letters of Administration?
These are documents giving the executors/administrators authority to deal with the deceased’s assets. If there is a Will, this document is known as a “Grant of Probate”. If there is no Will, it is known as a “Grant of Letters of Administration”. A Grant will not be needed for all assets. In particular, it will not be required in the following circumstances:-
- Where property is held jointly by the deceased and another
- Where the value of the assets is less than £15,000, but this depends on the company or bank with whom the asset is held.
Will Inheritance Tax be payable?
Basically, Inheritance Tax is only payable if the deceased’s assets were worth more than £325,000 (2011/12). If so, the assets will be taxed at a rate of 40% on the excess above this amount e.g. if the estate is valued at £350,000, the first £325,000 is tax free but the balance of £25,000 will bear 40% tax i.e. £10,000.
This is simplified and there are various exceptions to the above, which are included in more detail in the “Inheritance Tax” information article
Charges
Unlike many firms, Punch Robson do not charge a percentage of the value of the deceased estates. We feel that is fairer to simply charge on a time spent basis for the work carried out. Our charges will therefore vary depending on factors such as the number of assets, beneficiaries, whether the deceased estates are subject to Inheritance Tax and any complexities.
Contact us on one of the following numbers for further information:-
Middlesbrough 01642 230700
Ingleby Barwick 01642 754050
Coulby Newham 01642 233980
