Administering an estate can be a daunting task, especially during a time of grief.

Often families want their loved ones (usually their partner or children) to undertake this task and in many cases that is entirely appropriate.

However, there are a number of times that using a professional (whether that be directly appointing one in your Will or letting your family executors know that it is ‘ok’ to ask for help when the time comes) can make the process significantly better (and sometimes even cheaper) for all concerned.

Here are our top 10 reasons to enlist professional help when managing an estate.

1. Expertise in Legal Matters

With any luck, this goes without saying. However, what is often less clear is exactly how much technicality can underly an estate administration – the following are some examples I’ve seen over the years:

1. Your Will gives a ‘free of tax’ gift to your niece living in Germany – does that mean free of UK inheritance tax (an estate tax) or free of German inheritance tax as well (being a personal liability in Germany)?

2. Your Will gives your solid oak cabinet to your daughter in Scotland – who pays for the costs of transporting that, her or the estate?

3. Your Will (and this was a cracker) gives all the stuff in the upstairs of your property to your children. What happens if your family had moved stuff around before your death, perhaps because you were in care and they didn’t know what the Will said? What happens if you normally kept the family jewels in your upstairs safe, but the day before you died had brought them downstairs for a polish and forgot to lock them up again? Obviously never draft your Will this way.    

Specialised solicitors, especially STEP qualified ones, have extensive training and knowledge in estate administration. They can navigate the complexities of Will interpretation, court procedures, and local laws, ensuring compliance and reducing the risk of costly mistakes.

2. Minimising Stress

Losing a loved one is emotionally taxing. A solicitor can alleviate some of the burden by managing the intricate details of estate administration. This allows you to focus on healing and supporting family members rather than getting lost in paperwork.

3. Efficient Management of Assets

A solicitor can help identify, collect, and manage the deceased’s assets efficiently. They have the tools and resources to handle property, investments, and debts, ensuring that everything is accounted for and valued correctly. I have rarely, if ever, seen a good set of estate accounts produced by a lay executor. Without this crucial document, it is incredibly easy to overlook assets and under or over distribute the estate.

4. Resolving Disputes

Family dynamics can become complicated during estate administration. Solicitors can act as neutral third parties to help mediate disputes and ensure that the wishes of the deceased are respected, reducing potential conflict among heirs. Whenever parents wish to name their children but also admit that there is friction between them, I typically try to steer them away from naming them altogether – experience tells us that this lifetime friction will prove a recipe for disaster. However, if the parents are adamant, I will suggest appointing a solicitor alongside them to mediate (the professional punchbag). It is significantly better, from costs, time, and emotional toll perspectives, to have one solicitor helping all executors than have all executors fall out and appoint their own independent representatives.

5. Tax Expertise

Tax laws are complicated and taxes within estates are no exception. A solicitor can help you understand tax obligations, file necessary returns, and achieve clearance from HMRC.

Moreover, solicitors often know how to administer an estate in order to minimise the application of taxes. I have often saved an estate more in capital tax than it has cost in professional fees to administer it.

6. Probate Process Guidance

Navigating the probate process can be confusing. A solicitor can guide you through each step, from filing the Will to settling debts and distributing assets. Their experience can streamline the process and prevent unnecessary delays.

7. Comprehensive Documentation

The estate administration process requires meticulous documentation. Solicitors ensure that all necessary legal documents are prepared accurately and filed on time, which can help avoid legal complications down the line.

8. Estate Planning for the Future

If you’re administering an estate, you may also be considering your own estate planning. A solicitor can provide advice on how to structure your assets to avoid complications in the future, ensuring your wishes are carried out smoothly. For example, a 2-year inheritance tax planning window arises when you are a beneficiary of an estate (to enter in a Deed of Variation). Without seeking advice from a solicitor, most people are unaware that this opportunity even exists, let alone how to utilise it.

9. Protection Against Liability

Executors and administrators can be held personally liable for mistakes made during the estate administration process. Hiring a solicitor can provide a layer of protection, as they can help ensure that all actions taken are legally sound. Solicitors are also aware of means to protect executors (such as placingSection 27 Notices) that many lay executors will not know are avaialble. 

10. Peace of Mind

Perhaps the most significant benefit of hiring a solicitor is the peace of mind it provides. Knowing that a knowledgeable professional is handling the estate allows you to navigate your grief and make informed decisions without the added pressure of legal complexities.

Conclusion

In many cases, it is possible to administer an estate without professional help. However, if there are fractious family dynamics, or large or particularly complicated affairs within an estate, the advantages of using a solicitor are clear. Even if the estate itself is simple, people often struggle with this task at an emotionally fraught time, and having a helping hand can make the world of difference.

When it comes to estate administration, we are always happy to hold an initial meeting without charge to explain how we might assist and set out the process and costs for doing so. If you would like any advice about estate administration, please do not hesitate to contact the writer directly on 01494 893 533 or any member of our Wealth Management & Taxation team.