What do I do when someone dies
The following information is also available as a leaflet that can be downloaded.
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One of the first things you need to do is to find out if the deceased left a Will. The reason for finding out if there is a Will at this stage is to find out if they included any funeral instructions.
The Doctor that certifies the death will issue a medical death certificate. Once you have received this, you can register the death at the Registrar of Births, Deaths and Marriages. You will need to register the death within five working days.
The Registrar will then issue the Death Certificate, the necessary forms to allow for the funeral to proceed and the form required to notify the DWP of the death.
If the death was sudden it will be referred to the Coroner and there will be an autopsy and possibly an inquest. The Coroner will issue an Interim Certificate of Death to allow you to start dealing with the estate. However the funeral will be delayed.
The next step is to arrange the funeral. You can of course start dealing with the administration of the estate before the funeral but it is not necessary. We are happy to help whenever you are ready to start.
You do not need to use a solicitor in the administration of an estate nor do you need to use the firm that holds the Will. However, using a solicitor, while more expensive, can give you the peace of mind of knowing that everything is being taken care of. This may be the first time you have faced this daunting task, but we’ve administered countless estates over the years. Our experience can make this distressing time just a bit easier to deal with.
What does the administration of an estate involve?
Firstly it is necessary to work out who is entitled to dea with the estate; these people are called Personal Representatives. If there is a Will, the Personal Representatives will be the Executors appointed. If there is no Will, it will be relatives who will be called Administrators. The Statutory Intestacy Rules set down the order in which relatives are entitled to act as Administrators. These rules also set down who is entitled to share in the estate and to what extent.
The administration of an estate falls into four stages:
- Ascertain and secure the assets.
- Obtain a Grant of Representation.
- Realise the assets and pay all the liabilities.
- Account for the estate and distribute to the beneficiaries.
Stage 1 – Ascertain and Secure the assets
The Personal Representatives will need to make sure that the assets of the deceased are secure. For example, if there is cash found following the death this needs to be paid safely into the deceased’s bank account or handed to your Legal Adviser for them to hold. If there is a property involved this will need to be made secure and steps should be taken to ensure that the property is insured and that the Insurance Company is notified of the death.
The Personal Representatives will also need to obtain the values of all the assets as at the date of death. Even if the asset drops in value subsequently, for probate and Inheritance Tax purposes at this stage, the date of death value is the only one that is important.
It is also necessary to obtain details of any liabilities owed by the deceased at the date of their death. If there are assets that drop in value from date of death to when it is subsequently sold and Inheritance Tax has been paid, it is possible to apply for a refund of overpaid tax. However a refund can only be obtained if the asset is sold and not if it is transferred to a beneficiary.
Stage 2 – Obtain a Grant of Representation
Once the values have been obtained, the Grant of Representation can be applied for, which is necessary in all but the simplest estates. The Grant of Representation may either be a Grant of Probate where there is a Will, or a Grant of Letters of Administration, where there is no Will.
When a solicitor applies on your behalf the forms required are:
An Oath, and
An Estate Information Form (IHT205) or
An Inland Revenue Account (IHT400).
The last two forms are required by the HM Revenue & Customs and which one needs to be completed depends on a number of factors, such as the value of the estate, if the main beneficiary is exempted from Inheritance Tax, if the deceased was domiciled outside of the UK or if the deceased was a beneficiary of a trust etc.
There may be an additional form required by the HM Revenue & Customs, if you are claiming a transferable allowance. This was introduced in late 2007 and, if the deceased’s spouse or civil partner died after the 9th October 2007 and they did not use all of their Nil Rate Band allowance, allows the Executors to claim their unused portion and add it to that of the deceased.
The Probate Registry takes a minimum of two weeks to issue the Grant and makes a charge of £45* for the Grant and a further £1* for each sealed copy required. It is usual to obtain one sealed copy Grant for each asset in the estate.
If Inheritance Tax has to be paid on the estate, it will be necessary to raise the funds to pay some or all of this prior to obtaining the Grant of Representation. Many building societies and former building societies can be very helpful in providing funds, if they have sufficient in the deceased’s account(s). Where there are no easily available funds it will be necessary to raise a short-term loan and the terms for that loan will depend on the bank from which you obtain it.
Stage 3 - Realise the assets and pay all the liabilities.
The Grant of Representation> is the document that gives the Personal Representatives authority to close all accounts, transfer or sell shares and transfer or sell land. This cannot be done until receipt of the Grant.
Once funds have been received your Legal Adviser will proceed to discharge all liabilities including any loans taken out to pay Inheritance Tax. The only liability that can be paid before the Grant is obtained and funds realised, is the Funeral Account.
Stage 4 - Account for the estate and distribute to the beneficiaries
Once all the assets are realised and liabilities paid, your Legal Adviser will be in a position to draw up Estate Accounts for approval by the Personal Representative(s) and in some situations, the residuary beneficiary. Upon receipt of approved Accounts the monies will be distributed.
The above is a simplified outline of the procedure and most estates are not so straightforward.
