It’s now time that you draft the accounts as you have sold the assets, collected the money and paid the debts. This is the home stretch!

We have split Estate Accounts up into 8 sections to make this as easy as possible.

Front Sheet

Kicking off with a nice simple front sheet, this should say what this document is (The Estate Accounts), who’s estate it is (Use the deceased’s full name) and the date they passed away.

Assets

Put all the companies and places that the deceased held assets into a list, write the amount that was held with each, and then put a total amount at the bottom. (Banks, investments, houses, cars etc.). Make sure you use the value of the asset on the day the person passed-away (these are known as date of death figures), we will talk about any changes in these values shortly.

Liabilities

Just like you did with the assets section, put all the debts that the deceased had outstanding when they passed away into a list (things like credit card bills, any mortgages, unpaid household bills etc.). Don’t forget to put a total figure for all the liabilities at the bottom!

Changes During Administration

This section is where you would list any asset (or liability) that changed in value from when you had it initially valued to when it was sold during the administration process. If the deceased owned a property that you had valued at £200,000 (the figure you should have entered on the IHT205 form), but later sold for £220,000, this is where you would list the £20,000 change.

Income

After death, we would class any event where the estate received money like rent paid by a tenant, interest on money held in a bank or dividend payments, as the estate receiving income instead of simply an increase in assets. Just like before, list them, total them!

Expenses

Whilst going through the administration of the estate you are probably aware that there were times that you had to pay out money to complete certain parts of the process. (E.g. Funeral bills, oath fees, estate agent fees etc.). Put all these expenses into this section.

Distribution Sheet

This is the sheet that most people will skip to when they look through your finished set of accounts, it is where you show the total value of the estate and, just like Oprah back in 2004 (“you get a car”), you list who is getting something from the estate.

You should add together the totals for assets, changes, and income, then take away the totals for liabilities and expenses. This final figure should then be divided into the appropriate portions and then assigned to the list of beneficiaries.

Executor Signoff

Finally, there should be a page at the end with all the executors (or administrators) details, where they can signoff that they have looked through the accounts and agree with the figures (they also need to date when they sign).

Put all the above sections together and you have yourself a basic set of estate accounts.

Need help with Estate Management and Probate?

Contact the friendly experts at Steele Rose for help and advice on all things probate and for assistance with your estate management tasks. Call us on 01722 410009 or email us at info@steelerose.co.uk or via our contact page.

When a loved one passes away, especially if it is unexpectedly, planning their funeral and dealing with probate are usually the last things on our minds.

Planning a funeral is never easy, but we wanted to give you an overview of the process, costs involved and provide a checklist of things to think about to help make things easier during this difficult time.

Funeral Costs

According to the Money Advice Service, the average burial cost is £4,321 and the average cremation cost is £3,250. These costs can often be covered from the estate of the person that has passed, though depending on the size of the estate it can sometimes take up to 6-12 months for the funds to be released. As the executor of the will, you will also have the responsibility of making the funeral arrangements and will need to cover the funeral costs prior to any funds being released from the estate following the probate process.

Things to Consider when organising a funeral

A more expensive funeral doesn’t always mean a ‘better’ one. When considering arrangements for a funeral you should take into account the wishes of the person that has passed and also the affordability. Your loved one would not want you to get into debt organising their funeral, so it is good to get an idea of the costs for what you would like to plan by getting quotes from two or more funeral directors and choosing the right option for you and your family’s situation.

You may also need to find out if your loved one had any insurance policies set up before they passed, which help to cover funeral costs as this will be helpful in covering the expenses incurred and mean that you will not suddenly have to foot the bill, especially if you are not sure how you will afford the expenses involved.

As well as the burial or cremation itself, things that a funeral director can help you to organise include:

• Location of the funeral
• Transport to the ceremony such as a hearse
• Options for a coffin (these costs can vary anywhere from £100 to £10k)
• Flowers
• Burial plot and headstone, if your loved one had not already organised this prior to passing
• Urn (for the ashes following a cremation)
• Order of service
• Funeral notice (in the local paper)
• Copies of the death certificate
• Venue and catering if you choose to hold and cover the cost of a ‘wake’

Who do I contact to organise a funeral? Should I use a funeral director?

The cost of using a funeral director does mean that the overall cost of the funeral would be increased, however, the benefits of using a funeral director can help ease the stress of making all the necessary arrangements when you are already grieving.

The main benefit of using a funeral director is that they will be able to collect, store, prepare and deliver your loved one to the funeral ceremony, cemetery or crematorium and as part of their fee will also ensure that all the right paperwork is completed with you and help you to make the overall funeral arrangements.

There are likely to be funeral directors locally to you or to where the person that has passed away was living. Costs can vary depending on geographical location across the UK, but as mentioned above, you should get a couple of different quotes to help you decide which to go with based on how much they charge and what services they include in their fee.

How can Steele Rose help?

We understand how difficult this time can be and over the years have helped as many people as we can with what can be a stressful and upsetting process.

When you work with Steele Rose probate specialists for estate administration, we can help by covering the funeral costs for you upfront and then recover the costs from the estate later on. This is optional and dependent on the size of the estate, but may help you to cover the costs of arranging a funeral for your loved one rather than having to find the funds yourself.

If you choose to opt for ‘DIY’ probate, and you need to access funds of the person that has passed away in order to cover the funeral costs, in some cases you can take the funeral invoice and the death certificate to the deceased persons bank, where they will release the exact amount needed to cover the cost of the funeral.

For help arranging a funeral and with estate administration following the passing of a loved one, contact the Steele Rose team who will be able to advise you on the best course of action for your situation. Call us on 01722 410009 or get in touch via our website contact form.

It can sometimes be confusing as to how long probate will take.

To make it as easy as possible we will outline the causes that largely lengthens the time taken for completion. As well this, we aim to define the variables contributing to the question of how long does probate take.

What Factors Contribute to How Long Probate Takes?

Obtaining the Grant of Probate is an essential part of the estate administration process. When trying to understand this process, one of the elements to consider is the length of time probate will take to complete.

Executors are unable to administer the estate until the grant has been issued. Ideally, this would be achieved within three to five weeks. Occasionally complications can occur, for instance inheritance tax to pay or mistakes in the submitted forms which can slow the Grant of Probate.

The primary factor affecting the completion of probate is the complexity of the estate. This is a time-consuming practice which deals with the collection of all of the assets and the selling or disposal of these in accordance with the will.

Another factor affecting the Grant of Probate can be where various institutions (such as banks, insurance companies and investment agencies) work to their own timescales which results in extending the administration period.

There are circumstances which can delay the completion of probate by two years, such as an interruption in a property sale. Thankfully, this is a rare occurrence.

Once all assets have been sold or transferred, the estate accounts can be completed. Any outstanding tax can be paid prior to beneficiaries receiving their legacies. This step can take a substantial period of time as it is dependant upon the time taken for beneficiaries to respond with information.

How Long Does Probate Take If Administered by a Layperson?

It is possible to administer the estate oneself. However, as mentioned probate is not an easy task. The probate process can be stressful, time-consuming and expensive if not completed in line with strict regulations. We believe it is certainly worth, if nothing else, understanding what you are paying for.

Probate is for many, an unfamiliar and complicated process faced at a distressing time. If you are unsure if the estate needs probate or you do not know what you need to do, please do not hesitate in contacting Dean Steele on 01722 410009.

The opportunity of claiming against an estate even if there are no provisions for them in the Will or the Intestacy Rules is given to the following people:

• Family Members (blood line relatives e.g. a spouse or child of the deceased)
• Someone who was financially dependent on the Deceased.
• A beneficiary under the Will
• Someone who is owed money (debt claims)
• Someone who was promised something by the Deceased

There are five main areas where wills can be contested

Mental Capacity – When the testator makes a Will, they must be of sound mind. Broadly speaking the individual must know what they are doing, understand the consequences of including and excluding beneficiaries and have knowledge of the value of the estate. They must know that they are signing a will and approve of its contents.

Lack of valid execution – The Will must be signed by the testator in the presence of two others who are neither under the age of 18 or a beneficiary of the Will.

Undue influence – The testator must not have been unduly influenced, coerced or been under duress at any stage during the making of the Will.

Fraud or Forgery – Contesting a Will is possible if you believe there was Fraud or Forgery involved during or after the creation of the Will. This area mainly includes forged signatures. Keep in mind if a beneficiary is removed from the Will after a fraudulent accusation the Will may be invalidated.

Rectification and construction claims – A Will may be contested where the testator’s wishes were not correctly or clearly written into the document either due to a failure in the person preparing the Will or a clerical error.

Probate is for many, an unfamiliar and complicated procedure faced at a distressing time, if you are not sure if the estate needs Probate or you do not know what you need to do as an Executor please do not hesitate in contacting Dean Steele on 01722 410009 to discuss the estate administration.

By accepting free advice you are under no obligation to use our services.

The appointment of an executor of a will is made on the creation of the document by the testator (The person for whom the will is made). Administering the estate and carrying out the wishes of the testator upon their death is the responsibility of the executor.

What are my roles as an executor of a will?

There are many tasks that an executor must complete; it is easiest to group these into three main areas of probate: The administration, legal and tax.

Administration consists of tasks such as taking inventory of the deceased’s possessions and debts, notifying and paying off bills for all relevant organisations and distribution of the estate. The most time-consuming task of the three is the estate administration.

The Legal side consists of applying for a grant of probate; this must be done before the executor of a will is able to carry out the majority of the estate administration. They must also identify and deal with claims that are made against the estate.

Finally, the executor needs to complete relevant tax returns and pay any inheritance tax that is due (this is normally paid before the Grant of Probate is issued). This must also be done for both income and capital gains tax; all outstanding tax must be paid.

I do not wish to be the Executor of a will

If an executor of a will refuses to take out the grant of probate, any substitute executor named in the will can step forward and apply for the grant. If the circumstance arises in which there are no executors available or are named in the will; beneficiaries can then apply to administer the estate.

Probate is for many, an unfamiliar and complicated procedure faced at a distressing time, if you are not sure if the estate needs Probate or you do not know what you need to do as an Executor please do not hesitate in contacting Dean Steele on 01722 410009 to discuss the estate administration.

By accepting free advice you are under no obligation to use our services.

Formerly known as ‘Enduring Power of Attorney’, today’s Lasting Power of Attorney replaced EPAs in 2007 – making the process more streamlined and accessible. A Lasting Power of Attorney is something you should look ahead to in the event that a loss of mental capacity becomes a barrier to making decisions regarding your future.

While none of us wants to consider losing our mental capacity, having an LPA in place will ensure your best interests can be met, as well make sure any assets you have are readily available to contribute towards your ongoing care. A reduction in mental capacity can happen suddenly – due to a stroke for example, or more gradually as dementia develops. Act now and you can protect yourself and your loved ones from a mountain of obstacles to climb if there is no Lasting Power of Attorney is in place.

If a loved one is unable to manage their own affairs or make their own decisions regarding their personal welfare, you may need to obtain a form of authority to act on their behalf. If they have already made a Lasting or Enduring Power of Attorney then this should be used in the first instance. However, if someone loses mental capacity before having the chance to make a Lasting or Enduring Power of Attorney, an application to the Court will have to be made for what is called Deputyship.

Who can be a Deputy?

The only legal requirements to become a deputy is that the person is over 18. Deputyship is usually given to a close friend, family member or Law firm, in some circumstance’s Local authorities or organisations such as The Money Carer Foundation have been approved as deputy by The Court of Protection.

There are two types of Deputy

• Property and Financial Affairs– Paying bills and organising a pension.
• Personal Welfare– Making decisions about medical treatment and how someone is looked after.

What is the Difference between getting Deputyship and getting Power of Attorney?

Do deputies need power of attorney?
A Power of Attorney enables a person to act on your behalf. It must be given while the donor (the person who wants you to act) has mental capacity. If a deputy is required that means the person is mentally incapable and so unable to create an ordinary power of attorney.

Applying for Deputyship can be a daunting procedure. At Steele Rose, we have a number of experts who can assist you every step of the way, providing valuable support at a difficult time. For more information or to speak to a member of the team please call 01722 410009.

By accepting free advice, you are under no obligation to use our services.

The cost of probate can be a very confusing matter, with vast differences in who charges what and how they calculate their quote. We will try to address the amounts you should and should not be paying, the methods companies use to work out quotes, and things to watch out for when getting a quote.

The Methods

The cost to have a probate specialist take over the estate administration for you will vary from estate to estate. It takes in factors such as size of the property, number of beneficiaries, and the amount of bank accounts, to name a few. There are multiple methods as to how a probate specialist calculates the quote.

Hourly Rate

An hourly rate for services is one way the quote for estate administration is calculated, this usually falls between £100 and £250 per hour. This can swing either way, some find it saves them money because the probate is simple and does not take much of the specialists’ time. Others can find this a bank breaking method as the estate takes an eye watering amount of time as new barriers begin to crop up that prolong the case.

Percentage of the Estate

Taking a flat percentage of the estate is the common means of working out the quote. This can be as low as 1% to as extortionate as 6%. Law firms sit around the 2% mark on average. The estates complexity plays a role in working out the percentage. Some also like to use both methods in a quote, for example they will charge 1% of the estate, and they will also charge £100/hour for additional work.

Shall not exceed

A good thing to ask for is a ‘shall not exceed’ quote, the hint is in the name, they give you a figure that the probate fees cannot exceed, most firms will be happy to give you this, keep in mind that it is at times quite high and occasionally it backfires when the firm sees it as a ‘happy to pay up to mark’, so they ramp up the charges to the amount and you end up costing yourself more, it all depends on the firm. I recommend having a talk with the specialist first, it’s a good way to give you some background on the company.

Most Preferred

The cost of probate does not often fall below £2000-£3000. Each method has their pros and cons however for the most part Executors prefer the percentage system as they have an exact number to work with in relation to planning out expenses.

Probate is for many, an unfamiliar and complicated procedure faced at a distressing time, if you are not sure if the estate needs Probate or you do not know what you need to do as an Executor please do not hesitate in contacting Dean Steele on 01722 410009 to discuss the estate administration.

By accepting free advice you are under no obligation to use our services.

Tax matters to date of death– including the completion of repayment claim forms, self-assessment tax returns, Court of Protection Accounts and all taxation related matters to date of death with HM Revenue & Customs

Inheritance Tax– completion of all inheritance tax forms, including IHT 205, IHT400 and supporting schedules, checking HM Revenue & Custom’s calculations of interest where payment by instalments is applicable and dealing with clearance applications

Capital Gains Tax – computations of liabilities, including review of available reliefs, claims and exemptions. Reporting to the Inland Revenue and looking at potential tax planning opportunities

Trust Taxation– accounts and tax returns, including the completion of trust tax administration with HM Revenue & Customs

Tax Planning– Lifetime and Wealth Planning. How to mitigate IHT & CGT

No one likes to think about losing the ability to manage their own affairs including handling a bank account, claiming benefits, looking after their tax affairs or transacting a house sale.

For peace of mind it is more important than ever that you make Lasting Powers of Attorney to nominate people you trust now to make important decisions on your behalf in the future. The use of a professional advisor is essential, in order to avoid mistakes and ensure the Lasting Power of Attorney paperwork is acceptable to the courts, who will promptly reject incorrectly completed documents.

Steele Rose have specialist legal consultants based throughout England and Wales who are ready to visit you, in your home, at a time and date that is convenient (evenings and weekends included).

Steele Rose pride ourselves on our professional, prompt and personal approach. We aim to complete your Lasting Power of Attorney request as quickly as required and provide a 14 day no obligation option to cancel instructions without penalty, so there is no risk or obligation when contacting us.

Fixed Lasting Power of Attorney (LPA) Prices:

What’s Included?
Home visit Single Registered LPA only £299
Home visit Multiple Registered LPAs only £250 each
*Prices exclude vat, additional court fees may apply

There are two different types of Lasting Power of Attorney available, most people choose to do both types in order to have complete protection:

• Property and Financial Affairs Lasting Power of Attorney (LPA PA) that looks after all
  your property, financial assets, pensions and investments etc.
• Health and Welfare Lasting Power of Attorney (LPA HW) that covers all aspects of your healthcare and personal welfare. Including controlling where you may live, medical administration and life sustaining treatment, should you ever require care.

Even joint bank accounts may be frozen if one of the account holders loses mental capacity. Recent newspaper articles have highlighted the plight of residents in care homes being uprooted from the home they love and dispatched, like a parcel, to unfamiliar new addresses. These issues may be avoided if the correct Lasting Power of Attorney is in place.

If you would like to make a Lasting Power of Attorney, call us free on 01722 410009 or complete the no obligation Contact Form.