Estate administration when losing a loved one

It can often be difficult when a loved one passes, but this can also create a period of significant estate administration regarding their assets and taxes.

This can start with understanding their Inheritance Tax position, but can lead to the requirement to file lifetime tax returns, estate tax returns and ongoing trust reporting.

At Lambert Chapman, we have a dedicated tax team who are on hand to support and assist with any estate administration requirements. In particular, Tax Partner Lucy Orrow and Tax Senior Katy Stables.

Inheritance Tax Reporting

Understanding the requirements of the Forms IHT400 and preparing Estate Accounts is Katy’s area of expertise.  She can guide you through the collation of information and talk you through what reliefs and allowances the estate will be eligible for, whilst confirming payment dates and options.

Lifetime Tax Returns

Lucy and her team can help to finalise the lifetime tax reporting to bring those matters to a close.  We can often get information directly from HMRC to reduce the burden on the executors.  Confirmation of any tax liabilities or refunds then gets reported in the IHT400 as part of the estate assets or liabilities.

Estate Taxes

What can then follow is a period where the estate holds the assets before distribution to the beneficiaries.  Depending on the value of the estate or its income, a requirement to file formal estate tax returns can be triggered.

Whilst working with the executors or their solicitors, we determine whether this formal route is required or whether the less onerous ‘informal’ reporting can be undertaken.

Will Trusts

Once the estate administration has been completed, the Will may have a trust included to protect assets.  If the assets are income-bearing, then trust tax returns will be required and the trustees (often the executors of the estate) can also require trust accounts.  Lucy and Katy support a number of clients with this annual process, which can also result in beneficiaries being entitled to tax refunds.

Trust Registration Service

Both complex Estates and Trusts require registration, and this is undertaken via the Trust Registration Service.  At Lambert Chapman, we have a streamlined service which handles this administration process efficiently.

Support

We work with clients and solicitors to provide a seamless service in respect of trusts and estates.  It is important that we can provide you with a clear understanding of what will be needed and when.  As you can see, there can be a significant amount of formal procedures to get through and we hope that we can offer support at a time when things can be very challenging.

Please do call our offices to discuss your requirements. Lucy and Katy will be happy to answer any questions you may have.