Frettens resident Chartered Tax Advisor, Lee Young, is one of a few solicitors in Dorset to be dual qualified as a Solicitor and Chartered Tax Advisor. In this article, he provides a summary of the budget tax implications.
What happens if someone dies without leaving a will?
If this happens to one of your relatives, it is best to seek legal advice as soon as possible, because the law sets out who should then inherit their estate (their money, property and possessions).
Usually, a close relative like a spouse, parent or child has the right to deal with the estate of the person who has died. They are referred to as an ‘administrator’ - the person who deals with the estate if there’s no will.
You can usually apply for a grant of representation to be the administrator of the estate if you’re the person’s next of kin, for example their husband, wife, civil partner or child.
How do you value the estate of someone who's died?
You need values of any money, property and possessions (known as their estate) of someone who’s died, on the date of their death, before you are able to get a ‘grant of representation’. This is the legal right to deal with their estate.
You also use your valuations to work out if inheritance tax must be paid on the estate.
You’ll need details of all the person’s assets and debts when they died - plus any assets they gave away before they died (known as ‘gifts’) and also any assets they held jointly with someone else.
An asset is anything the person owned with a value which could be sold.
What are the steps involved in valuing an estate?
- Find out the value of assets and any gifts that were made in the last seven years.
- Add up assets and gifts, then take away any debts or loans they had.
- Use the total to ascertain if inheritance tax must be paid - there usually is if the estate’s value is more than £325,000.
- Fill in the correct inheritance tax forms - use the forms to deduct anything that’s exempt from inheritance tax and then work out the tax bill. You have six months to complete this from the date of their death if there is inheritance tax to pay.
- Send the forms when you apply for a grant of representation.
- It is important to keep records of all of the above.
Can you contest a will?
The answer to this question is yes, if there are grounds to do so.
Whilst someone’s wishes upon their death are of paramount importance, the courts do consider the needs of others known to the deceased who may be disappointed by the contents of the will. It may therefore be possible to make a claim for financial provision from the estate of the deceased.
In addition to this, there may be concerns as to the contents or the circumstances surrounding the making of the will, which invalidates it.
What are the grounds for contesting a will?
Grounds for contesting a will due to validity
The other grounds the court will consider when looking at whether a will is valid include:
- Mistake or error in the drafting of the will.
- If there is evidence that any pressure was placed on the person making the will as to its contents. Do you have suspicions regarding the contents or making of the will?
- Doubts as to the will makers mental capacity or their understanding of the contents of their will or their assets at the time they made their will.
- Proprietary estoppel. Have you been promised an inheritance, acted to your detriment as a result of that promise and then found out that you have been left nothing from the estate?
- The will has not been signed properly or there were not the required number of witnesses present.
How do I contest a will?
If we consider that there are sufficient grounds to dispute the validity of a will then we would initially look to settle the claim through correspondence and mediation.
If this is not possible, as a last resort, it would be necessary to commence court proceedings. We can consider various payment options when dealing with disputed will cases including deferring payment until the outcome of the case where the merits allow.
Disputing a will is never easy as we understand that you are grieving a loved one and embarking on litigation. Our team are sympathetic to the circumstances surrounding these types of dispute and can guide you through these stressful times.
Can Ex-spouses Claim Against Estates?
Yes, if the ex-spouse has not remarried or formed a new civil partnership, and the parties have failed to reach a formal financial settlement order or achieved a clean break, an ex-spouse could make a claim against the Deceased’s estate for reasonable financial provision pursuant to the Inheritance (Provision for Family and Dependants) Act 1975.
Such a claim would have to be brought within 6 months of the Grant of Probate being issued. A financial settlement will usually contain a clause preventing future claims against the estate of the other party, therefore if such settlement has not been achieved it is likely they can claim.
