The Process

• In most cases the expectation is that Inheritance Tax will be paid by the end of the sixth month after the date of death. With this in mind it is therefore important to start the process as early as possible and start gathering relevant information as soon as is practically possible.

  Whether a person left a will or died intestate you will have to calculate the value of the deceased’s estate and to do this we recommend that you start by contacting all organisations where the deceased held accounts such as banks, lenders, Stocks and Shares, NS&I and other fiscal institutions.

  You will need to calculate the gross value of the estate and will need to value all assets such as property, chattels (paintings, jewellery, household items, cars, etc), life insurance policies, pension policies etc. This also extends to foreign assets and any valuations that are not in English should be translated into English.

  Investigations will also need to be made into whether the deceased made any gifts in the 7 years preceding their death (for example by checking old bank statements).

  Likewise, you should gather all information pertaining to the liabilities of the estate, for example: mortgages, credit cards, loans, household bills (incurred up to the date of death).

  Funeral expenses can also be deducted from the estate total and we recommend that you keep all receipts relating to the Funeral.

  Once you have the estate valuation you will need to establish whether you need to file a return to HMRC, you will usually need to file a return unless the estate is an excepted estate. To file a detailed account to HMRC you will need to use form IHT400 and the relevant supporting schedules.

  If you need to make a payment of inheritance tax, you will need to apply for an inheritance tax reference number, we usually recommend that you apply for this early on in the process to avoid delays. Usually, HMRC will ask you to start paying inheritance tax before the grant of probate, in some circumstances you can pay in yearly instalments on items that take a long time to sell (such as property) or you can make an application for a grant of credit (to postpone the payment of inheritance tax), if your request to pay in instalments is granted it is usually subject to interest.

  HMRC will review the return and will either ask further questions or will confirm the account to the Probate Registry, after this point the Probate Registry will review the application for the grant of probate/letters of administration.

  After the probate has been granted the executors can use this to start administering the estate (collecting and distributing) in accordance with the terms of the last will.

  We understand and sympathise that this time is often tough for those dealing with the death of a loved-one, family member, close friend and this is often made further stressful by the additional role of an executor or the next closest relative in the blood line. And for this reason, our solicitors and team will make every effort to ease some of that pressure and make the journey as easy as possible for you.