Sometimes people are put off by the legal fees when dealing with inheritance, but using professional services can actually save you money in the long run.
It is always a very emotional and difficult time when someone dies and having to deal with that person’s estate on top of that can be an additional pressure. Here at Stephens Scown we are here to help with the administration of an estate as much as you need us.
Here are some of the reasons why getting professional assistance can save you money:
#1 – Inheritance Tax
Where tax is payable on an estate, interest and penalties can arise on the amount due if the return is not filed within certain time periods. We can ensure that the forms are submitted in time to avoid any unnecessary interest or charges arising. Also, where Inheritance Tax has been paid in an estate and an asset in the estate then sells for a lesser value, we can advise on reclaiming some Inheritance Tax from HMRC where applicable.
#2 – Capital Gains Tax
Whether or not Inheritance Tax is due on an estate, people are often unaware that if an asset sells for more than the value declared at death, then executors may be liable for Capital Gains Tax. We can advise on reducing any potential liability for Capital Gains Tax within an estate.
#3 – Liability of Executors of the Estate
Being an executor is a big responsibility and, as we covered in our previous article, dealing with an estate involves a lot of work (regardless of the size of that estate). Executors can also be personally liable for many reasons.
If an executor fails to pay all debts and liabilities of an estate, even if they did not know about them, the executor may continue to be personally liable and if the funds of an estate have been paid to the beneficiaries, the executor may not be able to reclaim funds from them. Executors can also be liable if they have wrongly distributed an estate, fail to pay all tax due, do not properly protect the assets of an estate, or pay money to a beneficiary when they should not (i.e. if they have been made bankrupt).
We can carry out checks, place notices and advise on all aspects of the administration of an estate, to protect the executors from personal liability.
As well as the practical assistance and support, knowing that the estate of a friend or family member is being dealt with properly and efficiently can give peace of mind to all those involved.