When settling an estate is not straightforward, we can smooth the way
Our clients were both executors of their deceased parents’ estate. They approached us for help with the administration of the estate, explaining:
“We are both executors, and also both beneficiaries of our parents’ estate. At the moment we cannot come to an agreement on how gifts given during our parents’ lifetime should be treated, or how the estate should be distributed. We need help to look these issues, to work out how previous gifts affect Inheritance Tax, and ultimately how our parents’ estate will be shared.”
How we helped
We investigated the extent of the estate and the lifetime gifts and how these affected the Inheritance Tax. The Grant of Probate was obtained, and we began realising the assets and settling the liabilities. This then allowed us to begin our work on how the estate was to be distributed. This included going to Counsel and obtaining Counsel’s Opinion in relation to the lifetime gifts.
The result
The inheritance tax position was finalised, and we received formal clearance from HMRC. After Counsel’s Opinion was obtained, this allowed us to finalise our position regarding the distribution of the estate and achieve a fair and equal distribution to all the deceased’s residuary beneficiaries.
Written: June 2020With our help, an estate’s executors were able to complete a complex, ongoing property development
When our client sadly died while a large property development was in progress, the executors of his Will needed help to see the project through to completion. They told us:
“With the project funded by a private development loan, the bank and monthly building costs are significant. We want to honour his wish to see the project completed but need help to bring together all the parties affected to find a way for work to go on.”
How we helped
We advised the executors. Shortly before he died, the deceased asked his executors to continue with the project to the finish, so that the property could then be sold for the best price possible.
The Grant of Probate was obtained quickly, but cash flow to fund the build quickly became a problem - the loan facility with the bank ceased and most of the value of the estate was tied up in the value of the development.
We were able to successfully manage the delicate relationship between the bank, the developers and the beneficiaries, and we were able to secure a sale of the ongoing development - a good buyer had been found, and all parties agreed that it was in the best interests of the Estate to sell. A sale at this point ensured that the loan to the bank was settled.
The result
The inheritance tax position was finalised, and we received formal clearance from HMRC. After Counsel’s Opinion was obtained, this allowed us to finalise our position regarding the distribution of the estate and achieve a fair and equal distribution to all the deceased’s residuary beneficiaries.
Written: September 2020We provided clear advice to an estate’s executors where multiple jurisdictions were involved
Our clients were the executors of an estate where the deceased had complex affairs, with domicile in England & Wales and assets in three jurisdictions. They said:
“We need a team who can deal effectively with institutions not just here, but in the Channel Islands and Singapore. Tracking down the right information will be a challenge, and ultimately, we need Grants of Probate in three separate jurisdictions”
How we helped
Obtaining the relevant information to ensure the Estate for Inheritance Tax purposes was reported correctly was a challenge - we were able to obtain the information needed from the institutions in the Channel Islands relatively easily and obtained a Grant on the relevant island there, but establishing the information we needed from banks and fund managers in Singapore was difficult and estimates had to be provided when submitting the Inheritance Tax account in the Estate. The issues we were encountering in terms of dealing with these third-party institutions were flagged up to HMRC and a payment on account was made.
Once we had the Grant of Representation in England & Wales this formed the basis of an application in Singapore, and eventually the funds due to the Estate from there could be collected - we were still, however, unable to obtain the precise figures to be reported for the date of death (despite best efforts), so an agreement with HMRC was negotiated and the Inheritance Tax position of the Estate was cleared.
We also ensured that the deceased's Income Tax affairs to the date of death - which were again complex – were settled.
The result
The relevant tax compliance issues were dealt with, the Estate was wound up and we were able to give effect to the terms of the Will.
One of the beneficiaries also died during the administration, so we were also instructed to deal with and wind up that Estate as well - this beneficiary also had a complex Estate and a claim for Quick Succession Relief for Inheritance Tax paid in the first Estate was successfully made.
Written: September 2020