ADMINISTERING THE ESTATE

There are three stages to go through:

• collect all the assets
• pay the bills and taxes
• distribute the net assets.

This may sound like a simple process that can be completed in a day or two, but if some of the assets are in the form of property or goods which have to be sold, or are investments which have a specific maturity date, for example, it can turn out to be a long drawn out affair. Along the way you may discover assets that you were unaware of or unexpected debts that have to be paid.

If you are unable to ascertain from the deceased’s records who the creditors are, you may need to advertise in a local newspaper or the London Gazette.

It is not unreasonable to allow a period of six months – or even longer – to wind up the estate.

Records need to be kept of all these transactions, and it is also advisable to set up a special executor’s bank account for paying in monies received and making out cheques to creditors and beneficiaries (see Figure 16). The tax authorities have the power to do spot checks, and for this reason everything must be accounted for. This means you should obtain receipts from everyone, including those people receiving bequests.

In property transfers it is necessary to register the change of ownership of the property with the Land Registry using Form AS1. This is known as Assent.

Usually a will nominates a person or people to receive the residue of the estate, and they should be provided with a set of accounts to show how the estate has been administered.