PRE-GRANT PROCEDURE

Question 1

6

The PRs frst responsibilities include:

Answer 1

*Collecting information and documents pertinent to de-ceased’s estate;
*Registering the death with appropriate entities (banks, building society, HMRC etc(;
*Obtaining valuations of assets, including using surveyors for land;
*Considering the validity of a will and possible claimants against the estate;
*Notifying benefciaries of potential entitlements (subject to the will being admitted to probate and the satisfaction of any liabilities); and
*Placing early advertising for unknown benefciaries and creditors.

Question 2

5

FUNDING THE INHERITANCE TAX LIABILITY

Answer 2

If inheritance tax (‘IHT’) is due, this must be paid by the PRs to obtain the grant. This can be funded in the following ways:
*Banks and building societies may release the deceased’s account funds directly to HMRC to pay inheritance tax before the grant is obtained. This direct payment scheme is a voluntary one that banks and building societies may join. It can be a slow process. Funds may be used to cov-er funeral expenses in a similar way.
*Bank loan—usually an undertaking has to be given by the PRs and/or their solicitor to account to the lender from the frst proceeds of realisation of estate assets;
*Loan from a benefciary;
*Sale of assets if no grant is needed prior to sale—for example, chattels; and
*Insurance policy payments—if the proceeds of life assur-ance are payable to the estate, the insurance company may pay them directly to HMRC.

Question 3

Timing

Answer 3

As explained in the Tax Outline, inheritance tax on certain assets can be paid in instalments. None of the tax on that property is due until the expiry of **six months from the end of the month in which the deceased died, after which date
interest will start to be charged.