Last Will And Testament

It is never easy when a family member or friend passes away. 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 be 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," said a representative of a leading high street bank.

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," commented a solicitor.

Sending a copy of the death certificate to any financial company concerned will let the firm know what has happened and who to contact. Often firms will have well defined policies about how to deal with the assets of the deceased and can give helpful advice. 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 currently 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.

It may be necessary to set up an executor's bank account to receive money and arrange for any shares to be sold or transferred into the names of beneficiaries. In addition, administrators and executors must also keep a detailed record of money they receive and pay out.

If you would like to know more about wills why not ask AnswerBank Business and Finance.