When a loved one passes away, there is no doubt that a difficult time will follow. When you’ve been selected as an Executor of the Will it is likely to be even harder as there are many responsibilities which are now in your hands.
Being an Executor is an important role, and once the task is accepted it is yours for life. When you have begun to carry out your duties it is not possible to step down and unfortunately, when acting as an Executor, there is a lot of room for errors.
Part of the role which can be difficult is identifying debts. It is essential to look into all possibilities of money owed, for example, contacting suppliers of energy, such as gas and electricity. According to the Trustee Act of 1925, an Executor should publish the death in The Gazette and a local newspaper so as to give any creditors the chance to claim money owed. This provides two months for anybody to come forward, and after this time frame, the Executor can not be held to blame. However, if this is not done, and a creditor comes forward after the estate has been distributed, the Executor can be liable for any financial claims.
While life goes on, it is easy to lose track of things. With the increase of online statements and the decline of paperwork it is becoming increasingly harder for Executors to track down all of the deceased’s assets. Searching for unclaimed or missing assets can be an arduous task so it is useful to discuss these things with your loved one if they ask you to be their Executor while they are still around.
Taxes are a factor that are specific to each Estate. The three types of tax which are involved are Income Tax, Capital Gains Tax and Inheritance Tax. It is necessary that Income Tax is calculated on the deceased person’s income up to the date of their death. Capital Gains Tax is paid when an asset is sold and it has increased in value since the original purchase, the increase in price is the part which is taxed. Halfway through the past decade, it was estimated that less than 6% of Estates were liable to Inheritance Tax. Due to ever increasing house prices this is on the rise, more and more of us are now liable so it pays to be aware of the current threshold.
Here at Legal & Contract Services Ltd. our Executor Support Service, which we provide under the Living Wills or Ultimate Service package, deals with all aspects on behalf of the Executor. We can put together all of the necessary forms, oaths, tax returns and Land Registry matters. Please call 0345 017 8250 or visit http://bit.ly/LCSExec for more information.