How can I check that I have found all of the Financial Assets of the deceased?

A Financial Assets search will help to identify the assets of a deceased person, giving you (as an Executor or Administrator) the peace of mind and knowledge that you have fulfilled your duty and taken all the reasonable steps required to ascertain all of the deceased’s financial assets in order to distribute them.

The reasoning for doing a Financial Assets search may well seem obvious – we all want to ensure that ALL of our assets are passed to the right people upon our death, right? And how many of us have a list of where all our assets are held…and have made our loved ones aware of this?

Well, that right there is the first reason. However, in addition to this, here are a few scary statistics for you:

The number of UNCLAIMED assets increases each year;
It is estimated (by Inheritance Data) that there is £200 billion sat in dormant accounts across UK Financial Institutions;
Although Financial Institutions have returned £65 million in financial assets, over the past few years, this is nowhere near the full amount;

Not just this…it is YOUR ROLE & RESPONSIBILITY as an Executor or an Administrator to maximise the Estate assets for the beneficiaries.

What will a Financial Assets Search cover?

So, now you know just how important a Financial Assets Search is, perhaps we should take a look at exactly what the search covers.

When carrying out a Financial Assets Search, a request is sent to more than 200 Institutions, that search more than 350 databases for matches with the deceased details. The search remains live for a total of 50 days and in most cases the results will be returned within 28 days. However, it is important to note that the live search will continue for the 50 day period to search any existing accounts and assets of the deceased.

The search will cover:

Bank Accounts;
Investments;
Shares;
Department of Work & Pensions (DWP);
Personal Pensions;
National Savings & Investment (NS&I);
Life Insurance.

Over 90% of Financial Assets Searches uncover a lost account (Inheritance Data). This is a staggering amount and is likely to mean that the cost of carrying out the search is more than worthwhile!

What Information is required to carry out a Financial Assets Search?

If you are dealing with the administration of the deceased then you are likely to have all of the information required to carry out a Financial Assets Search, this includes:

their full name
their address;
their Date of Birth;
their Date of Death;
their Occupation;
their National Insurance Number;
The Death Certificate;
A list of the known Institutions that they held accounts or assets with.

The National Insurance number is not essential, or mandatory, but it helps to carry out a more enhanced and comprehensive search.

It is so important to ensure that you carry out your role as an Executor or Administrator completely and this includes ensuring that the beneficiaries inheritance is maximised and a Financial Assets Search may be required to ensure that you can discharge your responsibility as an executor or Administrator.

If you would like to have a free chat about your existing Will or making a new Will, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

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3rd March 20213rd March 2021

What is Intestacy?

What is
Intestacy?

Intestacy can occur when a person dies without leaving a valid Will, where they have revoked their Will or where their Will is void. There may also be circumstances in which a partial intestacy occurs, this could happen where there is a valid Will but it fails to deal with all of the deceased’s Estate, where a Will has been partially revoked, where a residuary beneficiary predeceases the deceased who made the Will or where a residuary clause within the Will is ineffective.

Where there is an intestacy (whether completely or partially) it means that the Estate, of the deceased, will be administered in accordance with the Rules of Intestacy.

The Rules of Intestacy are set out in law, are very specific and may not be what the deceased wanted to happen. However, without a Will the wishes of the deceased cannot be carried out.

Where a person leaves a Will, an Executor is appointed (within the Will) to administer their Estate upon their death. When there is no will and a person dies intestate, a Personal Representative will apply to administer their Estate, they are known as an Administrator and will apply for Letters of Administration (as opposed to a Grant of Probate that is applied for when there is a Will).

It is important to note that you must always use the Law of Intestacy in place at THE TIME THE DECEASED DIED not those in place at the date when the Estate is administered.

As a brief overview, the ‘New Rules’ of Intestacy (Inheritance and Trustees’ Powers Act 2014) states that:

where there is a spouse and NO children, the whole Estate passes to the spouse
where there is a spouse AND children,
- (if the deceased died before 6 February 2020) the spouse gets the first £250,000;
- (if the deceased died after 6 February 2020) the spouse gets the first £270,000;
- The remainder is divided in HALF, the spouse takes one half absolutely, the children take the other half in equal shares;
where there is NO surviving spouse then the following are considered, in order:
- children;
- parents (equally if both alive);
- siblings of whole blood;
- siblings of half blood;
- grandparents (equally if more than one);
- uncles and aunts of whole blood;
- uncles and aunts of half blood;
- Crown (Bona Vacantia)

Where the children of the deceased have predeceased them, if they have left children of their own (grandchildren of the deceased) they will take the share that their parent would have taken had their parent been alive.

REMEMBER:
You do not have to deal with Probate, whether there is a Will or not, alone and you can always seek professional advice, guidance and support.

If you would like to have a free chat about your existing Will or making a new Will, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

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Have a Question or
want to book a
FREE Consultation?

18th February 202118th February 2021

The Roles & Risks of an Executor

The Roles & Risks of an Executor

As we always say it is an honour to be asked to be an executor for someone; it shows that they really trust you. However, it can be a burden and the role brings with it great responsibility.

Here we have a look at this in a bit more details…

So, let’s start at the very beginning:

What is an Executor?

“A person or institution appointed by a testor [the person writing the Will] to carry out the terms of their Will.”

Where there is no Will, the person that takes on this role is known as an Administrator, rather than an Executor.

The Role of an Executor (or Administrator)

So, now we know that the Executor is responsible for carrying out the terms of a Will, we will have a brief look at exactly what that entails and what other duties form part of this:

Contacting utility companies;
Putting the necessary insurances in place;
Obtaining property valuation;
Obtaining contents valuations;
Redirection of post;
Transferring property into the Beneficiaries names or selling (as required);
Valuing Estate assets;
Valuing Estate liabilities;
Applying for a Grant of Probate;
Completion of Inheritance Tax forms;
Calculating Inheritance Tax;
Paying Inheritance Tax within HMRC guidelines and deadlines;
Completion of Income Tax forms (for the year of death and period following death);
Consideration of Capital Gains Tax;
Set up any Trusts set out within the Will;
Sell or Transfer any Shares;
Pay all Estate debts and liabilities;
Distribute assets and Estate funds to the Beneficiaries (and obtain receipts);
Produce Estate Accounts.

The Risks taken on by an Executor

As you can see the role of an Executor is not one to be taken lightly and can be quite lengthy, depending on the Estate that you are administering.

It is also worth noting that the Executor takes on a legal obligation when accepting their position as Executor as well as financial risk.

Ignorance is no defence and so an Executor with a lack of experience and/or knowledge can quickly become overwhelmed.

However, it is important to remember that an Executor does not have to do everything on their own…help is available and it is okay to ask for help!

Whether you engage a professional or spread the burden among family members that have experience in dealing with such circumstances to help relieve some of the pressure, it is possible to reduce your exposure and risk as an executor.

If you would like to have a free chat about your Will or acting as an Executor, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

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9th December 20206th January 2021

Probate: The Basics

Probate:
The Basics

As a continuation of our series, ‘The Basics’, this week we are looking at…PROBATE.

We thought we would go back to the basics and answer some of the questions we get asked:

?

What is Probate?

?

Do I need to carry out Probate?

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Where do I start with Probate?

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What is involved in obtaining Probate? OR

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What is the Probate Process?

So, let’s get going…

What is Probate?

Probate is the process of dealing with someone’s Estate when they pass away. A person’s Estate will include their property, money and personal possessions (everything that they own) and the Probate process will involve the collecting in of all the Estate assets, paying off any debts and liabilities, and then distributing the remaining assets to the beneficiaries.

Do I need to carry out Probate?

Not always! Whether you need to carry out Probate or not, will depend on the size of the Estate that needs to be administered.

However, as a general rule of thumb, where there is a Property involved, Probate is likely to be necessary.

Many firms and solicitors, including ours, offer a free consultation – so, if you aren’t sure whether Probate is required on an Estate that you are dealing with, take advantage of a free consultation.

Where do I start with Probate?

This one can always be a bit tricky, as when the time comes to carry out Probate it is often the first time that the person dealing with it, has ever had to do the process.

So, where do we start?

How you start with the Probate process will depend on whether the deceased had a Will or not.

If the deceased had a Will, the Executors will need to begin by obtaining a Grant of Probate, if there is no Will then Letters of Administration will need to be applied for. Both a Grant of Probate and Letters of Administration are the legal documentation that allow the Estate of the deceased to be administered in accordance with the Will (if there is one) or by the Rules of Intestacy (where there is no Will).

What is involved in the Probate Process?

As we have said above, put simply, the Probate Process is merely the task of collecting in all the assets (property, monies, possessions, belongings) of the deceased, paying off any debts and liabilities (including any funeral and testamentary expenses, as well as paying any Inheritance Tax that is due on the Estate) and then distributing the remaining assets (or value thereof) to their beneficiaries. The beneficiaries will be those stated in the Will, if a Will was left, of those set out in the Rules of Intestacy, where there is no Will. If Inheritance Tax is due, it is advised to seek Professional advice to make sure you take advantage of all the Tax reliefs available.

If you would like to have a free consultation, or have any questions, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

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Have a Question or
want to book a
FREE Consultation?

15th October 202015th October 2020

How much does a Will cost?

How much does
a Will cost?

It’s always tricky to work out how much something costs, or is worth, before you get a quote. To guess how much anything will cost we need to look at the value of it first. ‘Value’ is described as “the regard that something is held to deserve; the importance, worth, or usefulness of something”.

If we break those 4 areas down for a Will then we can start to understand the value:

The regard that something is held to deserve

Writing a will is not as simple as putting pen to paper (or finger to keyboard). The process, when followed properly, should include an initial meeting where the Will Writer or Solicitor will take time finding out what the clients needs are, taking down all the relevant information and answering any questions the client may have. There may be a requirement to plan for inheritance tax, or to plan for vulnerable or disabled beneficiaries, and workout the best solution to meet all the clients needs.

Once this has happened the Will can then be drafted and a draft version sent to the client and explained fully to them.

If all is in order the Will can be finalised, printed and signed. The Will Writer or Solicitor will have additional paperwork to complete to be fully compliant and complete their due diligence.

There is a fair amount of work to complete in order to put a valid Will in place and it should take around 4-6 hours for an efficient Will Writer or Solicitor to complete, even with what is considered a ‘simple Will’.

The importance

The next part to discuss is the Importance of a Will, this should be self-explanatory but put simply, without a Will in place you don’t get to decide where your assets end up. Having a simple Will in place removes additional stress that your family and loved ones will have to endure without having a Will in place in dealing with the Rules of Intestacy. A Will not only dictates where your money will go, it also covers a variety of other important decisions, such as, guardians for children (if under the age of 18 years) your funeral wishes, your executors and any Trusts that you may wish to put in place to protect your loved ones.

Worth

If you ask anyone who has had to deal with the Administration of an Estate without a Will then they are sure to explain how much easier it would have been with a Will. It’s also more costly to go through the legal procedure when there is no Will (several times the amount it would cost to put a Will in place). If you put a Will in place you could save your loved ones time, expense and hassle – which must be worth it, right?

Usefulness

Having explained the previous areas, how useful is a Will?

Your Will lists clearly your instructions and what you want. It is the only way (in the UK) to ensure guardians are put in place, for your children, if required, explains your funeral wishes to your executors and directs your executors on how you would like your Estate to be distributed. Your Will can ensure people are protected in the event of your death and Trusts can be included to plan for inheritance tax amongst other important issues such as vulnerable or disabled beneficiaries.

So, how much should a Will cost?

It will vary on what you require and where you get it from. You can pick up a Will Pack from WH Smiths for under £20 and do it yourself. Although a word of warning…completing a Will yourself comes with risks, you’ll need to ensure it is correctly completed and legally valid, you may not realise this until it is too late.

If you go to a professional, you will be expecting to pay anywhere between £200-£500 for a simple Will. If you need Trusts in place or there is additional work then you can expect to pay more. Many companies offer an initial consultation free of charge and all prices should be quoted up front before work commences

We are always happy to have a chat with you about putting a Will in place or answer any questions you may have.

If you would like to have a free chat about your options or making a Will, please contact us on info@TotalLegacyCare.co.uk
or 01727 865 121

Neil Barras-Smith

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want to book a
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19th March 202023rd April 2020

What can we learn from these celebrities’ deaths?

What can we learn from these celebrities' deaths?

We are always saying how important it is to have a Will (well, we would, wouldn’t we!).

However, celebrity deaths often highlight the importance of having a Will through the complications, legal battles and high-profile disputes that occur following their death.

So, what can we learn from them?

Keep Control of WHO you want to benefit from everything you have worked hard for

When Prince died in April 2016, he left behind an Estate that was worth an estimated £230million.

With no Will in place it was decided by a Probate Judge that his Estate would be divided between his sister and five half-siblings (despite numerous claims from alleged ex-wives, children, siblings and other relatives).

During his lifetime, Prince had many legal disputes with his half-siblings and thus it is unlikely he would have wanted them to benefit from his Estate, although we will never know.

Leaving a Will, ensures that you can leave what you want to WHO you want to benefit!

Be clear and specific

Although Audrey Hepburn died in 1993, due to her wishes being unclear, the legal battle in relation to her Estate was not resolved until 2015, some 22 years later!

Audrey Hepburn had left a Will but had stated that her ‘memorabilia’ would be split between her two sons although no instructions were given as to which items were to go to which son. The sons could not agree on the division of the memorabilia and thus a long and expensive legal battle ensued.

Giving detailed instructions within your Will (or even an attached Expression of Wishes) can save time, money and family feuds when you are no longer around.

It is never too early to put your Will in place (especially when you have children!)

Paul Walker died at just age 40 BUT he did leave a Will that he had made three years after the birth of his daughter, when he was just 28 (many of you may think this is young to make a Will!).

Paul Walker had left a brief Will but it was very clear that his Estate should pass to his daughter, in trust.

Paul Walker had also appointed his mother as legal Guardian of his daughter.

Putting Guardians in place is so important to ensure your children are brought up by the people YOU trust, should anything happen to you.

You can plan for more than just your finances, property and personal possessions

Muhammed Ali left behind an Estate worth approximately £61million and not only did he have the forethought to make a Will stating his wishes and who he wanted to benefit from his Estate but also how he wanted his funeral events and public memorial to be.

The extravagant events were carried out in accordance with his wishes, including a memorial service over several days, a festival and public memorial with over 15,000 of his fans.

Leaving your wishes regarding your funeral in your Will can ensure that there are no questions or disputes between loved ones as to what you want and relieves some of the emotional burden that could otherwise be felt.

If you have any questions or would like to consider planning for your future, by putting a Will in place, please call us on 01727 865121 or drop us an email Info@TotalLegacyCare.co.uk

Leah Waller

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Have a Question or
want to book a
FREE Consultation?

5th June 201923rd April 2020

Probate & Estate Administration: What does it mean?

Probate & Estate Administration:
What does it mean?

At one point or another we will all have come across the term PROBATE or ESTATE ADMINISTRATION but what does it actually mean?

It is one of those questions that we have all had but may seem silly to ask…it isn’t!

PROBATE is the legal term for ‘proving the Will’ and this is done by applying to the Probate Registry for a Grant of Representation (also known as a Grant of Probate) to administer the Estate of the deceased.

ESTATE ADMINISTRATION is the term used to describe the sorting out of the deceased’s Estate following their death. Their Estate includes all of their possessions, property, money, savings, investments and anything else that they own or have an interest in. Their Estate may also have liabilities, such as debts (credit cards, utilities a mortgage), that require attention to. The Estate may also have tax liabilities (Inheritance Tax, Income Tax, Capital Gains Tax etc.) and this will also be dealt with as part of the Estate Administration.

Probate is often used as an overall term to describe the entire process, from obtaining the Grant of Probate through to administering the Estate, by collecting in all the assets, paying off the liabilities and tax, and distributing the Estate in accordance with the Will or the Rules of Intestacy (where there was no valid Will).

Estate Administration can be carried out by the Executor (as appointed under the Will) or a Representative of the deceased (where there is no Will and that Representative has applied for Letters of Administration), or can be carried out by professionals. In some circumstances the Executors or Representatives may require assistance of a specialist, especially where the Estate is complex or they have not had any dealings with such a situation.

It is worth remembering that Estate Administration takes a significant amount of time, with it being estimated that loved ones spend in excess of 50 hours dealing with Estate Administration where a specialist is not instructed.

In addition to this, those that carry out the Estate Administration themselves are personally liable for any mistakes that they make during the Estate Administration process.

If you are considering carrying out the Estate Administration yourself, you may find our Checklist for Executors helpful.

REMEMBER…You don’t have to do everything alone, ask for help as and when you need it!

If you would like to have a free chat, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

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Have a Question or
want to book a
FREE Consultation?

8th May 201923rd April 2020

What to do when a loved one dies…

What to do when a loved one dies...

Making the necessary arrangements after the death of a loved one is somewhat overwhelming and far from what we want to be doing. Below we have set out a few tips to set you in the right direction and always remember…you don’t need to do this alone!

Register the death

Registering the death must be done within five days and in order to do so, you will need the Medical Certificate (stating the cause of death).

You should consider how many certified copies of the Death Certificate you may need, as these may be needed to close accounts, to access funds, liaise with companies, collect in the assets and to complete probate.

When registering the death you will also receive a Certificate for Burial or Cremation.

Look for the Will

The Will, if there is one, is a very important document and may well contain the funeral wishes of the deceased.

Look for documents in relation to medical research and organ donation

These wishes may be contained in the Will but may be elsewhere.

Arrange the funeral

As said above, the Will or a Letter of Wishes (often stored with the Will) may include the funeral wishes or the deceased may well have had a funeral plan (that may also have been pre-paid) in place.

A prearranged funeral can save a lot of emotional (not to mention, financial) burden, when the time comes!

Ensure the deceased’s home is secure

This is important but may not be necessary if the deceased was not living alone and, of course, will not be necessary, if the deceased lived in a residential, care or nursing home.

Ensure their possessions safe

Just as important as the home, is the deceased’s personal possessions. It may also be apt to consider whether the deceased had a gun licence, that needs attention (as well as the weapons themselves) and whether there are any pets that need taking care of.

Find insurance documentation and inform the insurer of the death

You will need to notify the insurance companies of the death and ensure that adequate home and contents insurance is in place

Inform the DWP Bereavement Service of the death

Inform the necessary government departments of the death (“Tell us once” service)

This service will save you from providing the same information to many authorities. You will also need to return the deceased’s Passport and Driving Licence.

Inform other companies / organisations of the death

This may well include the following:

- Employer (if applicable)

- Dentist / Podiatrist / Chiropodist / Health care etc.

- Carers / Domestic or Residential Help / Cleaners etc.

- Banks

- Building Societies

- National Savings

- Insurance companies (Buildings / Contents / Car / Life etc.)

- Pension providers

- Credit card providers

- Store card providers

- Mortgage company / Landlord / Local Authority / Housing Association

- Utility providers (Electric, Gas, Water, Telephone, TV, Internet, Broadband etc.)

Administer the Estate

After the above has been dealt with and the funeral has taken place will begin the process of administering the estate (often referred to as Probate) and this will include:

- Obtaining a Grant of Probate or Letters of Administration

- Collecting in and valuing assets

- Distribution of possessions (in accordance with any Will)

- Dealing with shares and investments

- Selling property

- Selling assets

- Consideration and payment of debts and liabilities

- Closing bank / building society accounts

- Rehoming pets

- Dealing with Inheritance Tax and Income Tax forms

As we have said, there is so much to consider and think about at such a difficult time but it is important to remember that you do not need to do it all alone!

If you would like to have a free chat about putting plans in place for yourself, or dealing with the loss of a loved one, please contact us on

info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

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Have a Question or
want to book a
FREE Consultation?

14th March 201923rd April 2020

Can the Inheritance Tax process be simplified?

Can the Inheritance tax process be simplified?

The Office of Tax Simplification (YES, there is such a thing!) have published their first report on Inheritance Tax, looking at the views and experiences of over 3,500 participants.

Some key findings of the report show:

Where people were not using an Adviser to assist with the probate process, the executors were spending in excess of 50 hours on administration of the Estate.

Participants stated that ‘obtaining Probate’ and ‘completion of the relevant forms’ were the “most time-consuming” tasks in administering the Estate.

Concerns were raised over submission of Inheritance Tax forms even where no Inheritance Tax is payable.

65% of participants stated that they “still had to provide significant amounts of information” in relation to the Estate regardless of whether Inheritance Tax was payable or not.

In the tax year 2015-2016, Inheritance was payable on only 24,500 Estates, however, 275,000 Inheritance Tax forms were completed and returned to HMRC. Thus showing that even where the Estate may seem small and simple, forms may still cause complications.

The key recommendation from the Office of Tax Simplification, following this report is:

“The government should implement a fully integrated digital system for Inheritance Tax, ideally including the ability to complete and submit a probate application.”

Office of Tax Simplification

This seems an ideal solution, in principle, however this is a large, not to mention expensive and time-consuming, task to achieve. A digital system for the whole process could allow for a speedier and much more simple procedure for the whole process from obtaining probate through to reporting on the Estate and payment of correct Inheritance Tax where applicable.

However, we will wait to see for such action to be taken and for now work with the system as it is.

If you would like to have a free chat about Probate or administration of someone’s Estate, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

Got a Question or want to book a FREE Consultation?

7th March 201923rd April 2020

Where should I keep my Will?

Where should I keep my Will?

So, you have taken the important step to make your Will but what should you do with it now?

Your Will is extremely important as it sets out, to those that you have left in charge (your Executors), exactly what should happen, upon your death, to your Estate – your money, property and possessions.

If you do not have a Will then your Estate is passed on in accordance with the Rules of Intestacy, this may not be how you had intended, or would have wanted.

If your Will cannot be located upon your death then your Executors, or the Administrators of your Estate will have to deal with your Estate as though you had not made a Will.

Your original Will is the only legally binding document that will be accepted by the Probate Registry in order that your chosen Executors can distribute your Estate to those that you have chosen, in accordance with your wishes.

Many people choose to store their Will in their own home but recent research suggests that 67% of family members wouldn’t know where their relatives have stored their Will.

Storing your Will at home also has the additional worry of ensuring that it is protected against any flood or fire risk as well as being taken, among other valuable possessions, in the event of a burglary.

Storing your Will in a secure location, and advising your Executors of this, is essential – especially after going to the effort of making a Will and getting all your wishes down!

If you would like to have a chat with us about storage options, please do. These are low cost and include the option to amend your Will, at no additional cost, whilst your Will is stored with us.

If you would like to have a free chat about your existing Will, making a new Will or storage of your Will, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

Got a Question or want to book a FREE Consultation?

How can I check that I have found all of the Financial Assets of the deceased?

What will a Financial Assets Search cover?

What Information is required to carry out a Financial Assets Search?

What isIntestacy?

It is important to note that you must always use the Law of Intestacy in place at THE TIME THE DECEASED DIED not those in place at the date when the Estate is administered.

REMEMBER:You do not have to deal with Probate, whether there is a Will or not, alone and you can always seek professional advice, guidance and support.

The Roles & Risks of an Executor

What is an Executor?

The Role of an Executor (or Administrator)

The Risks taken on by an Executor

Probate:The Basics

?

?

?

?

?

What is Probate?

Do I need to carry out Probate?

Where do I start with Probate?

What is involved in the Probate Process?

How much doesa Will cost?

The regard that something is held to deserve

The importance

Worth

Usefulness

So, how much should a Will cost?

What can we learn from these celebrities' deaths?

Probate & Estate Administration: What does it mean?

What to do when a loved one dies...

Can the Inheritance tax process be simplified?

Where should I keep my Will?

What is
Intestacy?

REMEMBER:
You do not have to deal with Probate, whether there is a Will or not, alone and you can always seek professional advice, guidance and support.

Probate:
The Basics

How much does
a Will cost?

Probate & Estate Administration:
What does it mean?