PERSONAL TAX SERVICES

I am an experienced personal tax practitioner, offering self-assessment tax return compliance services and tailored income tax and capital gains tax advice. I also support clients with all aspects of capital gains tax calculations and reporting.

My service is fully bespoke to each individual’s circumstances, ensuring their specific needs are met and easing the administrative burden of tax compliance.

PROBATE AND ESTATE ADMINISTRATION

Acting as the executor or administrator for a deceased estate is a very responsible role, and those taking on this duty often want or need the assistance of a professional to help them navigate the process of obtaining probate and administering the estate.

I am one of a small number of accountants licensed to carry out probate work, which is normally a service provided by solicitors. As a qualified accountant and tax advisor, and affiliate member of the Society of Trust and Estate Practitioners, I am able to handle the whole process for clients, including dealing with the tax returns for the deceased and the estate and the production of estate accounts.

Overview of the Probate Process and Services Provided
  • Confirm whether the deceased left a valid will and identify the appointed executors. If no will exists, I may still be able to handle the estate provided it is a straightforward, noncontentious intestacy. In such cases, I will explain to the next of kin how the intestacy rules apply.
  • Explain to the executors and/or next of kin the range of support that I can offer and agree how involved they would like me to be. Every estate is different, and some executors prefer to take a more handson approach than others (for example in dealing with the deceased’s bank accounts and investments), so my service is tailored accordingly.
  • Check the deceased’s pre-death personal tax position and prepare any outstanding tax returns, reporting income and gains up to the date of death. Once approved by the executors or next of kin, these returns are submitted to HM Revenue & Customs (‘HMRC’).
  • Compile a full list of the deceased’s assets and liabilities, in conjunction the executors or next of kin.
  • gree on how valuations will be obtained for all assets as at the date of death and establish the extent of any debts.
  • Confirm whether inheritance tax forms are required, or if the estate qualifies as an ‘excepted estate’.
  • Where required, prepare the relevant inheritance tax forms for the estate (IHT400 and supplementary forms), calculate any inheritance tax due and liaise with HMRC to agree the final liability.
  • Apply for the grant of probate.
  • Once the grant has been received, I help the executors to collect the estate’s assets into a designated executors’ bank account, settle any outstanding debts and pay any specific gifts set out in the will. Please note that I don’t handle client money, and so the executors will set up and manage the bank account themselves.
  • Prepare the estate’s tax returns for the administration period (if required), reporting income and gains and calculating income tax or capital gains tax due to HMRC.
  • Deal with the reporting requirements for income paid to residuary beneficiaries, and advise those beneficiaries on the implications of this.
  • Prepare Estate Accounts, to demonstrate to the residuary beneficiaries what assets and liabilities were comprised in the estate, the IHT paid and expenses incurred, the income received, and how the assets will be distributed.
Timescales

In most cases, gathering details of the estate’s assets and liabilities, obtaining valuations, and preparing the initial inheritance tax forms and schedules will take approximately three to six weeks from the point of instruction. Where an IHT400 is required, this typically takes five to six weeks to prepare, but in the case of excepted estates, where no IHT reporting is required, the process is generally quicker.

Once the inheritance tax documents have been submitted to HMRC, I move on to preparing the probate application. HMRC will issue the code necessary to apply for probate within 20 working days, and once that is received, I can make the probate application. Probate should normally be granted within 12 weeks of application, but can be much sooner.

Once probate has been granted, together we will proceed to collect in the assets of the estate and pay any debts and legacies. This can take anything between a few weeks and over a year, depending on the nature of the assets and the complexity of the estate.

Fee structure

My fees are charged based on the work involved in obtaining the grant of probate and administering the estate, rather than size of the estate, and I will always provide an estimate of my fees for the various aspects of the work before commencing.

The likely fees vary significantly depending on the complexity of the estate and the level of service that I’m asked to provide, however some illustrative fee estimates are provided below.

  1. Estate where full spouse exemption applies and qualifies as an ‘excepted estate’, such that no IHT400 is required. My work would be to confirm the estate meets the conditions to be treated as an excepted estate, prepare a schedule of the assets and liabilities of the estate, make the application for grant of probate, assist the executors with collecting in the assets and dealing with the estate tax position and estate accounts
    2. My fees would typically be in the range of £2,500 - £3,500 + VAT
  2. Estate where and IHT400 is required, and the executors will liaise directly with the third party institutions (banks, investment managers etc) to collate the information needed, and will themselves deal with collecting in the assets. My work would be to prepare and submit the IHT400 and supplementary forms, make the application for grant of probate and deal with the estate tax position and estate accounts.
    3. My fees would typically be in the range of £3,500 - £4,500 + VAT
  3. Estate where IHT400 is required, and the executors ask me to liaise directly with the third party institutions (banks, investment managers etc) to collate the information needed, and then deal with collecting in the assets. My work would also be to prepare and submit the IHT400 and supplementary forms, make the application for grant of probate and deal with the estate tax position and estate accounts.
    4. My fees would typically be in the range of £5,000 - £10,000 + VAT

I can also bring the tax position of the deceased up to date by preparing and submitting tax returns up to the date of death, and my fees for this will be based on the complexity of the pre-death tax affairs, but are likely to be in the region of £500 - £750 + VAT for each tax return required.

My hourly charge out rate for probate and estate administration work, which is updated annually, is £200 + VAT. Disbursements, such are probate fees and postage, are not included in the estimates provided above and are added separately to my invoices.


Other points

This firm is authorised by the Institute of Chartered Accountants in England and Wales (‘ICAEW’) to carry out probate work, and is listed on the register of ICAEW accredited probate firms.

I do not deal with contentious probate cases, but can suggest solicitors who are able to deal with such estates.