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Experts – James McMillan and Shannon Whyatt from Punch Robson Solicitors are on hand to offer estate planning advice.
Upcoming key changes to impact estate planning and administration
ESTATE PLANNING
PICTURES: CHRIS BOOTH
Punch Robson Solicitors senior associate James McMillan outlines important aspects in estate administration that can often be overlooked without professional advice.
The importance of obtaining high quality legal advice from a suitably qualified adviser has always been important when estate planning and, also, when administering the affairs of someone who has passed away.
This will become increasingly so over the coming years following the changes announced in the October 2024 Budget.
The key aspects that can be overlooked include the following:
Not being aware that income tax and / or capital gains tax may be due for the period of estate administration It is the responsibility of the deceased’ s personal representative – generally this would be an executor where there is a will, or an administrator where there is no will – to ensure that any taxes are correctly paid and to account to the beneficiaries for any payments made.
Not gathering in all the deceased’ s assets There is a concerning statistic that reveals there are billions of pounds of unclaimed assets in the UK. Many of these are in pensions that personal representatives are unaware of.
To ensure they are not culpable, suitable searches should be undertaken to trace all assets. Missed assets may also mean unpaid tax.
Not placing notices to creditors It is the responsibility of the personal representative to settle all debts of the estate.
Personal representatives should consider placing statutory notices – this time limits their own liability as to settlement of the debts.
Not being aware of situations where is it advisable to obtain a Grant of Probate, even if not required A Grant of Probate is not just a tool for gathering in assets, it also serves to start the clock running for any potential claims being brought against the estate under the Inheritance( Provision for Family and Dependants) Act 1975.
Not keeping proper accounts The personal representative must account to the beneficiaries for work undertaken during the administration period.
Adequate accounts are often not maintained or do not contain the necessary information.
The changes to business relief, agricultural relief and pensions will throw up even more aspects for personal representatives to be aware of.
The main changes around business and agricultural reliefs relate to a cap on the currently available reliefs and a reduced rate of relief available on assets over that cap.
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