Last will and testament
Sorting out wills and legacies in often entangled financial affairs can be a nightmare, and cause rows in one in ten families following a death.
Problems can become even worse when the person charged with executing the will's instructions may be struggling with grief or unprepared for the job.
"The process can take between six and nine months for the typical estate where there is a property involved. It can be an onerous task," Nick Robshaw of HSBC told This is Money.
The first step is to work out the size of the estate covered by the will.
"Finding the assets can be a challenge. Some people leave a list or register of what they have. But others leave no indication of their wealth," says solicitor Janet Kyriacou.
Sending a copy of the death certificate to any financial company concerned will let the firm know what has happened and who to contact. Professional valuers can estimate the cost of property, jewellery or antiques.
Once the wills and estates value has been worked out, along with a tally of taxes and debts, an executor must arrange matters with the taxman.
Inheritance tax is charged at 40 per cent of any estate worth over £275,000. Requests to a spouse or charity are exempt, however. Payment of tax is due six months after the death, although instalments may be arranged when wealth is tied up in assets.
After the tax man has been dealt with, a Grant of Probate allowing the executor to take control of the assets must be obtained. Finally the will may be distributed.
"You will need to set up an executor's bank account to receive money and arrange for shares to be sold or transferred into the names of beneficiaries," said Mr Robshaw.
"Administrators and executors must also keep a detailed record of money they receive and pay out.
Related Articles:
Inheritance 'makes some purchases possible'
Britain's pensioners 'should pick up money owed promptly'
Inheriting debt is 'a fear of the young'
Parents 'want financial help from offspring in old age'
Pensioners susceptible to inflation
