Following a death, a clear action plan makes the process easier, says Stephen Duffy.
Dealing with the loss of a loved one is always difficult, and it can be further complicated by the overwhelming responsibility of administering the estate of the deceased.
Knowing what needs to be done, however, can make the whole experience easier to bear. This checklist covers the most important questions and actions that have to be addressed.
Is there a Will?
Contact your solicitor to see if they hold a will. If not find out if it is at the bank or among the deceased’s personal papers. If there is one, you should find it as soon as possible.
Registering the death
You need to obtain a doctor’s certificate of the death. This should then be taken to the Registrar of Births and Deaths in the district where the death occurred. The Registrar will issue a certificate to be taken to the funeral directors so funeral arrangements may be made.
Arranging the funeral
Your solicitor can advise you on whether there are any special instructions in the Will. It is recommended that you telephone a funeral director as soon as possible to arrange a meeting and ask for an estimate of the likely expense. In some cases a funeral plan covering these costs may have been purchased in advance.
Notifying others
You may want to place a notice in a newspaper – you, your solicitor or the funeral directors can arrange this if required. Remember there will also be many people and official bodies who will need to be notified, such as banks, building societies, utility companies, local council. Widows should notify the Department for Work & Pensions.
Is a Grant of Representation necessary?If the total assets owned by the deceased at the time of death total £5,000 or more, it may be necessary to obtain a Grant of Representation (the proof of legal authority required by the person who is entrusted with dealing with a deceased person’s estate). Some banks and building societies will extend this limit to £10,000 (or even £15,000) so always ask.
Identify assets
You must identify all the assets and find items such as deeds, passbooks, bank books, share certificates and insurance policies. You must also establish the value of the deceased’s assets and details of liabilities as at the date of death.
Oath for executors/administrators
You need to establish who should apply for the Grant. The oath is then prepared – this is essentially a sworn statement made by the personal representatives testifying that the estate of the deceased will be administered according to law. This also states the gross and net value of the estate. If the gross estate does not exceed £312,000 (or is less than £1,000,000 and passes to the surviving spouse) it only needs to be accompanied with a brief HM Revenue & Customs (HMRC) account of the assets.
If the gross estate exceeds £312,000 (or exceeds £1,000,000 and passes to a surviving spouse) you must prepare an extensive HM Revenue account giving details of all assets and liabilities. This is signed by the personal representatives, but is not sworn and forwarded to the Capital Taxes Office.
If the net estate exceeds £312,000 and does not pass to an exempt beneficiary, such as a spouse or charity, then it becomes liable to Inheritance Tax (IHT).
Administering the estate
Once received, the Grant of Representation needs to be registered wherever the deceased had assets, and any bank or building society accounts involved should be closed. Upon receipt of the monies representing the estate, any debts (including funeral expenses) are paid and cheques can then be sent in respect of any legacies set out in the Will.
When all matters have been resolved, personal representatives must prepare detailed accounts showing all receipts and payments. Your solicitor should assist in this process. Once approved, copies are sent to the residuary beneficiaries (if they are not the personal representatives) with the cheques settling the amounts due to them.
In Short
- Establish if there is a Will.
- Ensure you understand your responsibilities.
- Do not underestimate the workload.
- Many official bodies will need to be notified.
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