Why Attempting to Administer an Estate yourself might be a False Economy

Over the last couple of years, processes around dealing with a deceased’s assets have changed considerably, some of which are aimed at making it easier for people to deal with estates without instructing a solicitor to assist.

It is a commonly held belief that fees charged by solicitors to deal with administering estates are very high, and people often want to save money by dealing with it themselves. But what happens if something goes wrong? If an Executor’s actions cause loss to the estate, they will be held personally liable, meaning that it might be worth looking more closely at what a solicitor can offer to help.

Estate administration can be complicated, particularly where there are multiple assets, assets overseas, properties, shares or a large number of beneficiaries. Where the deceased has not left a Will, this can mean further complications, as the law specifies who has the right to deal with the estate and receive the assets.

Executors in an estate are liable to ensure that an estate is administered properly, in accordance with the law as they can be held personally responsible if they do not. In particular they need to ensure that they have dealt with the following:

1.      Obtaining accurate values of estate assets

2.      Advertising for potential creditors

3.      Completing inheritance tax returns and ensuring tax is calculated correctly and paid on time. They need to be aware of exemptions, reliefs and nil rate bands to ensure that they report the estate correctly

4.      Applying for a grant of representation where it is needed

5.      Ensuring all liabilities are paid

6.      Dealing with property titles

7.      Identifying all beneficiaries, particularly where the deceased has not left a Will

8.      Accounting for tax during the administration period

9.      Producing estate accounts at the conclusion of the matter as is required by law

It is worth noting that legal fees are payable from estate funds, not by the Executors. At Forbes we can tailor the extent of the work we do for executors, assisting with as much as they want us to, whilst offering support to ensure that nothing is missed, and to protect the Executor against potential mistakes and resulting liability.

If you have any queries at all in relation to Estate Administration, please get in touch to discuss how we might be able to help.