Estate Accounts and taxation

During the period of administration, a record should be kept of the assets and liabilities of the estate as they are collected in and of payments of bills and legacies. In many cases income is received from the assets by the executors.

What can we do to help?

• Preparing and filing the estate income tax returns for the period of administration (these are separate to the personal returns that may be required by HMRC for the deceased up until date of death).
• Advising on the setting up of any trusts established by the Will and/or requirements to terminate such trusts. Note that any legal work required for this would be referred to a solicitor if applicable and charged separately from the estate administration.
• Preparing Estate Accounts to provide a clear analysis of the estate assets and liabilities and the subsequent distributions to the beneficiaries of the estate to enable the executors to meet their legal obligations correctly.
• Making the final payments out and moving the ownership of the assets from the estate to the residuary beneficiaries.
• Advising executors of their ongoing role as executor of an estate and whether measures such as deeds of indemnity should be implemented to guard against potential claims against the estate.

Settling tax liabilities, preparing Estate Accounts and making final payments to beneficiaries may take up to two months, depending on the number of transactions and beneficiaries involved.