WILLS, ESTATES & PROBATE

As you may already be aware at Charterhouse we have an in house team of specialists that include those experienced in the areas of Will drafting, Probate and the Administration of Estates.

We would like to take this opportunity to remind you of the services we have to offer in these often difficult and complex areas.

We are able to support you with full compliance services in each of these areas as well as offering advice and guidance as appropriate.

Wills

A will is the essential first step to estate planning. Not having a will can mean chaos and financial worry for your family or dependents after you have gone. Without one, you can not be sure that your property and other assets will be passed on according to your wishes. If you die without a will the intestacy rules determine who inherits what. For example in England and Wales if you are married with children your partner only receives the first £250,000 of your estate (referred to as the statutory legacy) plus a life interest in half the remainder. Your children will inherit the rest. For those without children your partner would receive a statutory legacy of £450,000 and the balance of the estate will be distributed amongst the deceased’s surviving immediate family based on the rules under intestacy.

We can prepare a will for you and in the process take account of Inheritance Tax issues that may arise and advise you of any relevant lifetime planning that you can consider and put in place to mitigate potential inheritance tax on your death. As we are experienced in the use of trusts we can advise you on the use of appropriate trusts. Trusts can be important in various ways for example in retaining control of or access to your assets/capital whilst potentially moving them out of your estate for inheritance tax. We are able to understand your needs and provide tailored advice and implementation of such advice therein.

Probate Services

Grant of probate is required in order for the personal representatives of the deceased (called the executors if there is a will in place) to obtain the authority they need to deal with (administer) the estate.

We can act as executors to your estate and provide the necessary probate services leading up to the grant of probate (which must be obtained either by the executors themselves or by a solicitor).
The probate services include the following:

Collating details of assets and liabilities of the estate.
Consideration of any trusts/life interest or any gifts/PETS made over the last 7 years
Preparation of the necessary papers and forms including appropriate oath, forms IHT 400 and IHT 205 and IHT421 for payment of Inheritance Tax.
Arrange for the payment of the Inheritance Tax due to HM Revenue & Customs.

Grant of Probate

If we act as executors to the estate we will deal with grant of probate which includes:

Completing form PA1 and returning to Probate Registry
Attending the interview at Probate Registry as executors of the estate
Swearing oath and signing of original will.

Estate Services

The granting of probate and distribution of assets to the beneficiaries can take time and sometimes if there are complexities for example the will is contested by the beneficiaries, this can take several years. In the meantime the executors are responsible for submitting the appropriate tax returns to the HM Revenue & Customs with respect to the income earned by the estate.

We will:

Prepare and submit tax returns required from 6 April to date of death
All subsequent estate tax returns required
Calculate and reflect any capital gains on disposal of assets
Preparation of R185 forms for payment of income to beneficiaries
As executors we will ensure the residue of the estate after payment of all taxes is distributed to the beneficiaries and issue R185 forms accordingly.

Lasting Powers of Attorney

The Mental Capacity Act 2005 makes provision for people to choose someone to manage not only their finances and property should they become incapable but also to make health and welfare decisions on their behalf. This is done through a Lasting Power of Attorney (LPA).

There are two types of LPA.

A Property and Affairs LPA – enables the ‘attorney’ to make decisions on your behalf about your property and affairs, eg collecting income & benefits, paying bills, selling house.

A Personal welfare LPA – allows the person you choose to make decisions on your behalf about your personal welfare eg where you live.

In order to appoint an LPA a ‘certificate of capacity’ is required to be drawn up and registered with the Office of the Public Guardian (OPG). Further, forms to appoint LPA must also be registered with the OPG.

We are able to prepare the forms for you and to provide the information you need to make the appropriate decisions.

Inheritance Tax

As mentioned we can advise on the ways in which to mitigate inheritance tax and this includes specific schemes for example investment in an Enterprise Investment Scheme provides 100% relief against inheritance tax after 2 years if the investment is held at the date of death.

Summary

We are therefore able to provide a complete service in both planning and executing matters of your estate.

Please contact us to discuss your circumstances in further detail and whether you wish to prepare a new will.

Our services are charged on a time basis, however should you choose to engage our services the cost of the initial meeting will be rebated to you.