Estate Administration: Should I Handle it Myself?

After a death, family members sometimes decide to deal with probate and estate administration themselves. Handling estate administration can be tricky, should you tackle it yourself? We take a look at the potential risks involved, and why it can be advantageous to ask a professional to take on the job instead.

When someone passes away, the executor or administrator assumes responsibility for winding up the deceased’s affairs and distributing the net estate to beneficiaries. To begin with, the personal representative may handle the process personally or hire a probate solicitor to manage the legalities. However, it is important to note that this role requires a substantial amount of effort. Specifically, the executor must value the estate, complete Inheritance Tax forms, and calculate and pay any tax due. Furthermore, they must collect all estate assets and prepare detailed accounts before the final distribution.

Do I have time?

Winding up an estate can be exceptionally time-consuming. Large amounts of correspondence and paperwork must be dealt with. Someone already working full time, and with other responsibilities may find it difficult to set aside the hours needed to deal with the administration promptly.

Generally, matters need to be completed within a year, unless there is a good reason for being unable to do so. Inheritance Tax must be paid by the end of the sixth month after the death. While this may seem like plenty of time, asset holders can take a while to provide information.

The Probate Registry often takes several months to deal with an application for a Grant of Probate or a Grant of Letters of Administration.

Am I prepared to take on the risk?

As an estate executor or administrator, you carry personal liability for any errors that cause a financial loss to the estate. Crucially, this liability remains even if you make a genuine or inadvertent mistake. For instance, if you calculate Inheritance Tax incorrectly or pay it late, the tax authorities will impose a penalty; consequently, you must pay this fine out of your own pocket rather than from estate funds.

To mitigate these risks, you should take specific precautions to limit your exposure. In particular, you should place statutory advertisements in the press to notify creditors and unknown beneficiaries of the death. Without such notices, you risk personal liability for any debts that surface later. Furthermore, these advertisements protect you from claims by unidentified beneficiaries who might otherwise hold you responsible for their missing inheritance.

Do I have the capacity to deal with the administration?

Estate administration always comes at a very difficult time for those close to the deceased. Managing the difficulties of winding up someone’s affairs while coping with the emotional burden is hard as well as stressful. Also, other family members may make the process harder. If there are differing opinions on how the administration should be dealt with, or they impose pressure to carry it out more quickly. Relationships can deteriorate and disagreements could arise.

Professional estate administration

The alternative is to ask a professional probate solicitor to deal with the estate administration on your behalf. They have the time and the expertise to ensure that it is dealt with as quickly and efficiently as possible.

They can eliminate any risks by meeting deadlines, placing statutory advertisements as necessary and making sure that the tax affairs are dealt with accurately. Having a professional deal with the winding up of someone’s affairs substantially reduces the scope for family disagreements. The cost of professional estate administration is paid from the estate.

Contact Us

If you would like more information please call us FREE on 0800 781 6658 or email us at enquiries@estplan.co.uk