Estate administration
In this section I aim to give an indication of the main problems encountered in estate administration and those issues that I feel will be most important over the coming months.
The recession has led to a larger than usual number of wills being contested, usually either because the claimant has been left out of the will and feels that they ought to receive something, or because the beneficiaries in the will have changed. People have almost started spending the inheritance before it has been received. When they find that they are not to benefit they are understandably distressed and in the litigation led society that we find ourselves in thesedays people are all too quick to take the matter to the courts.
The courts give a lot of weight to what the testator intended and it is essential therefore that the will is carefully drafted to give effect to your wishes.
We go to great lengths to ascertain details from clients which on the face of it may seem somewhat strange and obscure, but our file notes may be what settles the case and gives effect to your wishes. I also see all too often wills that are defective in some way, usually because of the way that they were signed or because of alterations and the like. These can usually be resolved by providing affidavits but the additional work is so easily avoidable by having us look at the executed will to ensure that it is valid once you have signed it. We provide comprehensive will signing instructions because there are strict rules governing the signing of wills. If you are in doubt please let us check for you. If the will needs reprinting now this can lead to a small additional cost. This cost however is far less than the cost of providing affidavits after you have passed away.
Another issue affecting estates at the moment is the recent change in the inheritance tax return IHT400 required by HM Revenue & Customs. These forms are somewhat large and very daunting if you do not know your way around them and are often needed for estates where we need to claim some Inheritance Tax nil rate band unused from a pre-deceased spouse’s estate. Take a look at the IHT400 suite of forms and you’ll see why it is a good idea to take advantage of our probate services!
There are also a large number of estates that are using a deed of variation to alter an old “nil rate band” discretionary trust into other forms of trust (or indeed collapsing them entirely) due to the recent introduction of the transferable nil rate band between spouses which removes the need to remove one person’s nil rate band on the first death of a married couple or civil partners. Don’t worry too much if you have one of the old trusts – in worst case situations we can alter them after you’ve gone.
