Before you distribute the estate #
Before you distribute the estate, you have to pay any outstanding tax, debts or bills and any expenses. It’s a good idea to place what’s called a ‘Statutory Notice for Creditors’ in the press, allowing two months for any claims to be made. If you don’t, you and any other Executor(s) are personally responsible for any claims that arise. If you place the notice, any future claims against the estate are made against the Beneficiaries instead. Get clearance from HMRC for any Inheritance Tax, Income Tax or Capital Gains Tax liability.
Distributing the estate #
These are the main tasks involved in distributing the estate:
- If the Will states that a specific item of personal property is to be given (‘bequeathed’) to someone, you can do this before Probate is granted, but make sure you have the item valued before doing so.
- When Probate is granted, draw up estate accounts, accounting for all the assets collected, income built up and any bills paid since the date of death.
- Using the Beneficiary Schedule (if appropriate Intestacy Schedule) in Stage 4, distribute the estate in accordance with the terms of the original Will (if appropriate Rules of Intestacy), making sure at least two trustees are named for any gifts left to Beneficiaries under 18. Any additional income since the date of death should be distributed in accordance with the terms of the original Will (if appropriate Rules of Intestacy) – This additional income is not included in the Beneficiary Schedule (if appropriate Intestacy Schedule) and will need to be accountant for separately, to the relevant Beneficiaries.
- You may need to complete and provide each Beneficiary with a R185 tax form so they can report any additional income they receive, that has been received by the deceased’s estate since their death and which is being distributed to Beneficiaries.
- You may want to wait at least six months after Probate is granted before distributing the estate incase any claims are made against it.
How long should I keep the paperwork for after the estate has been distributed? #
You should keep clear records of the work you’ve done, and any documents so you can answer any questions or challenges over how you administered the estate. You must keep all paperwork associated with the estate, including the Grant of Probate or Letters of Administration for a minimum period of 12 years.