When a person dies, someone has to take charge of sorting out everything they leave behind. If you have been named as an executor, you may be asking what estate administration is and what it involves. In short, it is the process of gathering in the assets of the person who has died, settling their debts and any tax, and passing what remains to the people entitled to it. It is a role that carries genuine legal responsibility, and it can involve a good deal more work than people expect. This article explains what estate administration involves from start to finish, and how a solicitor can lighten the load.
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What Does Estate Administration Involve?
At its simplest, estate administration means putting the deceased’s affairs fully in order. That covers identifying and valuing everything they owned, obtaining the legal authority to deal with it, paying whatever is owed, and distributing the remainder correctly. In between sit a great many practical steps, from writing to banks and closing accounts to selling or transferring property and preparing accounts for the beneficiaries.
The person responsible is the executor where there is a will, or the administrator where there is not. Both are sometimes referred to as the personal representative. Whichever applies, the duties are essentially the same, and they must be carried out with care.
Who Is Responsible For Administering An Estate?
If the deceased left a valid will, it will usually name one or more executors, and it is their job to administer the estate. If there is no will, or no executor able to act, the law decides who may take on the role as administrator, normally starting with the closest relatives.
Taking on this role is a serious undertaking. A personal representative is personally liable for administering the estate correctly, which means they can be held to account if debts or taxes are overlooked or if the estate is distributed to the wrong people. It is entirely possible to carry out the role yourself, but many people prefer not to shoulder that responsibility alone, particularly while they are grieving.
What Are The Main Stages Of The Process?
Although every estate is different, most administrations follow a similar path.
The first stage is establishing the full picture. That involves identifying the assets and debts, obtaining valuations, and working out whether a grant of representation is needed. The second stage is dealing with inheritance tax, which involves reporting the estate to HM Revenue and Customs and, where tax is due, arranging to pay it, often before the grant can be obtained. The third stage is applying to the Probate Registry for the grant, which provides the legal authority to proceed.
Once the grant is in hand, the fourth stage is collecting in the assets, closing accounts, cashing in or transferring investments, and selling or transferring property. The fifth stage is settling all remaining debts and expenses. The final stage is distributing what is left to the beneficiaries and preparing estate accounts that show clearly how everything has been dealt with.
How Long Does Estate Administration Take?
Timescales vary widely according to the size and complexity of the estate. As a general guide, the grant itself often comes through within four to eight weeks of the application, but the full administration usually takes several months, and a complex estate can take longer still.
What Are The Common Difficulties?
There are several issues that tend to catch personal representatives out. For example, failing to identify all of the deceased’s assets or debts can lead to an inaccurate account and, potentially, personal liability. Distributing the estate too early, before the tax position is settled or before the period in which certain claims can be brought has passed, can leave the executor exposed. Valuations that do not stand up to scrutiny can trigger a challenge from HM Revenue and Customs. Family disagreements can turn a straightforward administration into a contentious one.
None of these is insurmountable, but each is easier to avoid than to put right after the event. Careful record keeping, a methodical approach and, where needed, professional advice go a long way to keeping an administration on track.
Do You Have To Use A Solicitor?
There is no legal requirement to instruct a solicitor, and for a simple estate a capable executor may well manage alone. Where an estate is larger or more involved, however, professional help often proves worthwhile. It removes a heavy administrative burden at a difficult time, reduces the risk of costly mistakes, and gives the executor the reassurance of knowing the estate is being dealt with correctly.
A solicitor can take on the whole administration, or simply assist with the parts an executor would rather not handle, such as the inheritance tax account or the sale of a property. The right level of involvement depends on the estate and on how much the executor wishes to take on themselves.
How Can Bartletts Solicitors Help?
Our wills and probate team administers estates of every size, from the straightforward to the highly complex, and we do so with the courtesy and sensitivity the situation calls for. We can manage the entire process for you, keeping you informed at each stage and explaining matters in plain language, or we can support you with specific tasks. Should any complication arise, such as an inheritance tax query, a valuation dispute or a contested will, we have the experience to deal with it.
To speak to our experts please call us free of charge on 0800 988 3674 or Make A Free Online Enquiry.
