- My relative has died – what action do I need to take?
- What is an Executor and who should I appoint?
- What happens if I don’t make a Will?
- How flexible is a Will? My circumstances are likely to change.
- How can a Will protect the interests of my dependants?
- How can I ensure my Will is tax efficient?
- What other provisions might I include in my Will?
- Is a Lasting Power of Attorney relevant to Will making?
- What information is needed to prepare my Will?
- What do I do with my Will once I have made it?
- How can I reduce the amount of tax payable by my beneficiaries?
- How can I get the advice I need to reduce the tax?
- I had a will drawn up 10 years ago do I need to review it?
- Who do I appoint as an executor to administer my estate and what will it cost?
- If I die intestate (ie without a Will), who would administer my estate?
- If I die intestate, who will inherit my money and possessions?
- Do I need a solicitor to make a Will?
- What services can a solicitor provide in handling the estate of someone who has died?
- What services can be provided for the longer-term administration of Will Trusts?
- As a beneficiary – how can the distribution of an estate be changed.
1. My relative has died – what action do I need to take?
The thing to remember is not to panic. Initially you should telephone us on 01769 575983 and we will give you immediate advice on what needs to be done. We can then arrange an appointment to discuss in more detail the administration of the estate and the information we will need to assist you.
2. What is an executor and who should I appoint?
An executor is the person or body responsible for dealing with your estate on your death. This will involve quantifying your assets and liabilities, ensuring that any inheritance tax liability is accurately declared and paid, gathering in your assets, discharging your liabilities and only then distributing your estate to the beneficiaries named in the Will.
Where the Will creates trusts, the executors may also be trustees, for example where there are minor children or where trusts have been created on death for inheritance tax or other reasons. In many cases it would be appropriate to nominate a husband, wife or child of full age, but in other cases it is advisable to have a professional executor or executors. We can advise you on your choice and the partners of Slee Blackwell are always willing, where appropriate, to act as executor.
3. What happens if I don’t make a Will?
If a person dies without leaving a valid Will the deceased dies ‘intestate’. There are statutory provisions setting down who will benefit from the estate which are known as the Intestacy Rules. These rules specify which beneficiaries receive the estate and in what amounts or proportions.
In many instances these statutory provisions will not reflect your wishes for the distribution of your estate and are unlikely to be tax efficient. Writing a Will gives you the opportunity to control where you assets go and who benefits after your death rather than leaving it to chance.
4. How flexible is a Will – my circumstances are likely to change?
A Will only operates from death so you can change it at any time. It is always good practice to keep a Will under regular review. When we prepare your Will we will discuss any foreseeable changes or events and make provision for these. Simple changes can later be made by a Codicil to your Will, though more substantial changes are best made in a new Will.
5. How can a Will protect the interests of my dependants?
By your Will you can nominate guardians to look after the physical and emotional wellbeing of your children until they reach 18 and your Will can include provisions to allow your executors and trustees to provide any necessary funds for their maintenance and education.
If you do not want your children to inherit your estate outright at the age of 18, your Will can incorporate trust provisions for your children to receive the capital at a later age, or as beneficiaries under more long-lasting trusts. It is important to take advice on whether it would be appropriate to incorporate trust provisions in your Will and, if so, what type of trust would be best suited to achieve your wishes.
You may need to make provision for other dependants, whether in your Will or otherwise, such as children from a previous marriage, a co-habitee or elderly parents.
6. How can I ensure my Will is tax efficient?
As well as expressing the wishes of an individual for the distribution of his or her estate on death, Wills can also be used to help reduce Inheritance Tax and assist in protecting against other claims such as residential/nursing home fees.
7. What other provisions might I include in my Will?
You may want to make gifts of specific cash sums to relatives, friends or charities.
You may also wish to provide for the distribution of specific items, such as jewellery, to particular beneficiaries, which can be done by reference to a letter of wishes to avoid regular changes to your Will.
It is common for people to give directions for their funeral in a Will. You can express a preference on burial or cremation or you may have more specific wishes such as a woodland burial or burial at sea.
If you have an interest in a business, either in your sole ownership or as a partner or shareholder, you may need to make provision in your Will for the management and continuation of the business following your death, or for its effective disposal.
You may also have property abroad for which advice will be required on the action needed to deal with the distribution of that property, as many other legal jurisdictions do not allow free disposal of houses and land and give family members specific rights of inheritance.
8. Is a Lasting Power of Attorney relevant to Will making?
Although a separate matter, at the same time you make your Will it is sensible to address the issue of the administration of your finances and affairs generally, in case for any reason you become unable to manage them yourself. This can be dealt with by a Lasting Power of Attorney.
9. What information is needed to prepare my Will?
It is really very straightforward. You will need to decide on who the executors are going to be and tell us who is to benefit from your estate after your death. We will also need brief details of your family circumstances and an outline of your assets.
10. What do I do with my Will once I have made it?
Once your Will has been signed we recommend that we hold the original document for safe keeping. This service is provided free of charge. We will of course let you have a copy for future reference.
It is advisable to keep your Will under review as your personal and financial circumstances change, as well as those of your beneficiaries. If amendments are required these can be made by a Codicil or new Will.
11. How can I reduce the amount of tax payable by my beneficiaries?
When we prepare a Will we can consider whether you would benefit from an Inheritance Tax planning report, to help reduce the impact of Inheritance Tax on your estate. This advice may encompass a wide range of avenues available to reduce the potential tax liability arising on your death, including maximising the use of various inheritance tax exemptions and relief’s, specific provisions in your Will, changing the ownership of your property and other assets, lifetime gifts (whether outright or into various forms of trust), and the use of life policies. We will also consider any death in service and pension benefits you may be entitled to, as well as the possible utilisation of a Deed of Variation following a recent inheritance.
12. How can I get the advice I need to reduce the tax?
We will need to discuss with you the full details of your financial and personal circumstances in order to advise on the options available. In particular, such tax planning needs to take account of your income and capital requirements, both now and in the future, and the exposure to other tax liabilities which might arise in such planning.
13. I had a will drawn up 10 years ago do I need to review it?
It is good practice to regularly review your Will. If your circumstances change, for example if you marry or divorce, it is essential. Your Will should also be reviewed regularly to ensure it is tax efficient.
14. Who do I appoint as an executor to administer my estate and what will it cost?
Someone you completely trust and who you know has the ability to manage your estate. People usually appoint a member of their family or a friend to be an executor. It is often desirable to have a solicitor as an executor and the partners in Slee Blackwell regularly act in this way, either jointly with a friend or family member or on their own.
15. If I die intestate (i.e. without a Will) who would administer my estate?
The person who will deal with your estate will be your closest living relative, chosen in the following order:
- Your husband, wife or registered civil partner (but not your unmarried or unregistered partner)
- Your children or your children’s descendants (for example, grandchildren) if they are over 18
- Your parents
- Your brothers or sisters with the same mother and father, or descendants of the brothers or sisters
- Your half-brothers or half-sisters (who had either the same mother or the same father) or their descendants
- Your grandparents
- Your uncles and aunts ‘of the whole blood’ (this means brothers and sisters of your parents, so long as they had the same mother and father themselves) or their descendants
- Your uncles and aunts ‘of the half blood’ (this means brothers and sisters of your parents who had only the same mother or father) or their descendants.
- The Crown (the state), if there are no relatives
If several people have an equal right to deal with the estate (for example, brothers and sisters), letters of administration will normally be given to the first of these people who applies for it
16. If I die intestate who will inherit my money and possessions?
The Intestacy Rules provide a rigid order governing how your property is distributed. We have summarised the Intestacy Rules elsewhere in this site.
17. Do I need to use a solicitor to make a Will?
It is not essential, however for a number of reasons it may be best to do so. This will ensure the document is drafted correctly and can minimise tax liability. It is not too costly to employ a solicitor to draft a Will and having professional help will serve to give you ‘peace of mind’. As our colleagues in our Inheritance Disputes team will tell you, making a DIY or ‘homemade’ Will can be an extremely costly mistake, as can going to unqualified Will writers.
18. What services can a solicitor provide in handling the estate of someone who has died?
We can provide a full and comprehensive service for the administration of an estate in accordance with a valid Will or on intestacy (where there is no Will). This includes obtaining all the information required to apply for a Grant of Probate or Letters of Administration and preparing the necessary documents for lodging with the Probate Registry, including a detailed Inland Revenue Account.
Once Probate or Letters of Administration have been obtained, the administration of the estate can proceed, with the sale or transfer of the assets of the estate, payment of all liabilities and the distribution of the estate to the beneficiaries entitled.
All other tax matters will be finalised to the date of death. The estate administration may also include dealing with the disposal or transfer of property, shares or a business interest, and assets or property situated abroad.
The setting up of any trusts created by a Will (or on intestacy) is included, and the beneficiaries of the estate may also need assistance in relation to management of their inheritance and all related issues.
19. What services can be provided for the longer-term administration of Will Trusts?
We can provide all necessary assistance to trustees in connection with the administration of Will Trusts, including advice and assistance in carrying out their trust duties. In particular this is likely to entail investment of the trust funds, appointing and liaising with the trust’s financial advisers, payments to the beneficiaries, preparation of trust accounts and preparing tax returns.
20. As a beneficiary, how can the distribution of an estate be changed?
A Deed of Variation can be entered into by some or all of the beneficiaries of an estate, whether under a Will or an intestacy, to provide for a re-direction of estate assets. This can be used to reduce potential Inheritance Tax chargeable in the future, provided it is carried out within two years of the death. Deeds of Variation can also be used to create trusts or to cater for individuals for whom provision should be made.
