Making probate simple
What is Estate Administration?
Estate Administration (also known as “Probate”), is the process of dealing with an individual’s estate after they have passed away. Some people will choose to carry out the administration process themselves. Whilst this may be an option, there are many situations where it may be advisable to use a professional e.g. where inheritance tax is likely to be payable, where there are minor beneficiaries or trusts involved, where the validity of the Will is in question, or where the Will could be contested.
Acting as an Executor can be complex, and time-consuming. The process relies on specialist legal knowledge, and there are many things that could arise that may cause complications. Whilst it can be possible for a lay-person to deal with the deceased’s estate without a professional’s help, this often leads to delays and problems further down the line. Executors are also personally liable for any losses arising from their actions.
Our team and the various associates and specialists that we work with can help. Together we offer a comprehensive, and tailored service. We can help with anything from a Grant of Probate, to dealing with inheritance tax liabilities.
What are the benefits?
At FT RICH MUMMY, we have the systems and team in place to keep your case moving forward. We are experts in this field, and are committed to ensuring that the estate administration process is completed with great efficiency. This will ensure that assets are distributed correctly, and as quickly as possible.
FIXED FEE SERVICE
In the vast majority of cases, the costs of estate administration can be dealt with in full for a pre-agreed fixed fee. It is also possible for us to deal with various aspects of more complex estates on a fixed fee basis too.
FACE TO FACE ADVICE
We can either visit you at home, or you are welcome to meet with us at our offices. We will be able to discuss your requirements, and the full administration process with you.
NO UPFRONT COSTS
Some people may be concerned about the costs of using a professional executor, and how to fund such fees. Where a person passes away and there are sufficient funds available, the costs of administration can be taken from the estate once any work has been completed.
Our associates can deal with the full administration process from start to finish, or just specific elements e.g. inheritance tax, capital gains tax or trusts. You are in control. We will only help where needed.
It can be a very difficult and emotional time for the family following the loss of a loved one. There can be a lot to sort out, and difficult decisions to be made. By appointing a professional executor, it will relieve the family of the stresses and burden of having to administer the estate.
Frequently Asked Questions
By having a Property Protection Trust (PPT) you are ensuring that your home, which is your most valuable asset, passes to your chosen beneficiaries regardless of what the future holds. If this is your goal, a PPT could help.
By making a Will, you are ensuring that your family will be taken care of and making the administration process much simpler.
Some people consider giving their property to someone else, such as a child, so that the asset won’t be counted for a care fees assessment. However, this may be viewed as a deliberate deprivation of assets, and you would then have to pay the same level of care fees as if you still owned the property.
Also, if your child’s circumstances were to change during their lifetime, you run the risk of losing the property and becoming homeless. For example, if your child went through bankruptcy, a divorce or they passed away, you may no longer be able to live in the property as the asset would be in their name and could be taken.
As a result, we would never recommend transferring a property into the names of children, or a third party without meticulous planning and advice.
Things are also more time-consuming and complex when a Will is not in place. This can cause additional stress for your family, at what is already a very difficult time.
Under the Wills Act 1837, in order for a Will to be legally binding it must be:
– made by a person who is 18 years of age or older, and who has their mental capacity;
– in writing; signed by the person making the Will and witnessed by two independent people;
– made of the person’s own volition, without pressure or coercion.
A witness cannot be a beneficiary of the Will, nor married to someone who will benefit. We normally advise that clients use close friends or neighbours as witnesses.
The witnesses are there to confirm that the Will was signed by the testator (the person making the Will), and that they knew what they were doing i.e. they were not under any undue influence or pressure to do so.
“Mirrored” Wills are commonly made by unmarried or married couples. Each person has their own document, but the wishes contained within them will be pretty much identical. For example, a “mirrored” Will may say that a couple want to leave everything to each other first, but then when both of them have passed away, the estate should pass to their children.
This is a term used to describe what assets of yours are left after any gifts, debts, tax funeral costs and other testamentary expenses have been paid.
The remainder of your assets are then distributed to your beneficiaries. This could include: your bank accounts, property and personal possessions.
Your residuary estate does not include things such as jointly owned property or bank accounts. It would also not include pensions or life insurance policies that have been written into trust – you would normally have nominated someone to receive these when you set them up.
You have to be at least 18 years of age to receive any inheritance that you may have been left. Sometimes clients feel that 18 years of age is still too young, and will instead opt for 21 or 25. Where a person is under the age of 18 (or whatever age you have specified), their inheritance would be looked after for them by trustees. The trustees would have the discretion to distribute money to them as and when they see fit. Once the child has attained the age of 18 or older, they will then become responsible for their inheritance and make all the decisions for themselves.
An Executor is someone who deals with the administration of your estate. You will appoint these people in your Will, and they are most likely to be close relatives or friends. For more complicated estates, it is not uncommon for someone to appoint a professional to act as their Executor.
An Executor is responsible for the following:
– Finding your Will;
Locating and valuing your assets;
Paying off any debts that there may be at that time;
Distributing the remainder of your assets (your residuary estate) to your beneficiaries.
A trustee is someone who looks after your property until a given time in the future. For example, where money has been left to a child, and they are unable to inherit until they attain a certain age.
Trustees must act with honesty, and integrity. Their responsibilities include: taking control of trust property, to safeguard such property and to act in the best interests of the beneficiaries.
A guardian is someone that you appoint to look after your child/children if something happens to you whilst they are under the age of 18.
If you pass away leaving young children, and you have not appointed a guardian, it will then become the role of the courts to find someone suitable to care for them. This could mean that someone other than who you would like is appointed to look after them.
No, but it is a good way of letting your executors what kind of funeral you would like. We would recommend that you discuss your preferences with your family too.