The death of a loved one can be devastating and coping with that loss is hard. As the Guardian aptly writes, “first comes the shock, then the grief – and finally an awful lot of paperwork”.
There should be a name for it; admourning. And whilst the demands of admin can seem pretty perverse when you’re trying to work through your grief rather than forms, it does need doing so you’re able to find some closure.
From filing paperwork and informing institutes of the deceased’s death to arranging the funeral and tackling the “fraught process” of probate, there’s a lot to think about. To make things a little easier, we’ve put together a guide on how to manage a family member’s estate after they pass.
ARRANGING AN EXECUTOR OR ADMINISTRATOR
Usually, the deceased individual will have left a valid will. In these cases, the person who deals with the estate post death will be named in the will, and are known as an ‘executor’ of that will. If the will left by the deceased is invalid, then the individual who deals with the estate is known as an ‘administrator’.
These administrators will be appointed by a court if there is no executor of a will named. Executors generally will have full authority for the estate from the moment of death.
The duties of both of these roles are generally the same; they will be responsible for sending copies of death certificates to the family member’s banks and other such financial organisations to allow the funds to be released. This also means that they have to freeze accounts so money can’t come out unless there is legal authorisation.
Of course, they also have to manage the estate in general, checking for any creditor and debtors, and setting up a new bank account for the estate as a whole. When it comes to debts, both owed and owing, they will have to take care of that, too.
Lastly, once all fees are paid, collected and paperwork sent off, they’ll be able to distribute the assets of the estate to those mentioned in the will.
Read: 4 ways to cope with the death of a loved one
DEALING WITH DISPUTES
If you feel that your family members estate is being mismanaged, whether intentionally or not, you can challenge via contentious probate.
Contentious probate refers to any dispute concerning the manner in which a person’s estate is administered after they have passed away. From the date of the probate coming into effect, you’ll have six months to bring a claim.
One of the most effective ways in which to deal with disputes is to use an experienced solicitor to help challenge the probate process. Osbornes Law tell us that “If you’re unsure on how you can protect your will from being challenged, there’s an abundance of information on their website that will guide you. By filling in a quick form, you can then get directly in touch with a solicitor who can advise you on your specific case”.
The disruptions in question could be financial concerns about valuations of assets or how the will has been interpreted, as well as general disagreements about the estate distribution.
This can lead to will contesting, which is a legal process that can either be settled early, or in rare cases, go all the way to court. Having a solicitor on your side will mean they are able to assist you with any concerns regarding the administration of the estates trust. It could lead to the removal of trustees, too.
COSTS AND PAYMENTS
There can be outstanding costs and debts owed by the deceased that need dealing with. These could be rent or mortgage payments outstanding, as well as any unpaid bills. You’ll also have to keep in mind that there are funeral costs to take care of, too, as well as other payments to protect the estate assets.
It’s not uncommon for there to be formal debts to be paid. The executor/administrator will be legally responsible for paying off these debts. On the flipside, they will also be responsible for collecting owed money, such as claiming tax rebates, life insurance, pensions and savings.
BANK ACCOUNTS AND PENSION SCHEMES
No matter the size of the estate, an executor or administrator must open a separate estate account with a bank or building society. This is because all transactions within the administration of the estate need to be tracked and recorded.
Those involved with the will, such as beneficiaries, are entitled to see a full inventory of the estate, including copies of the accounts. If the executor or administrator doesn’t cooperate in providing information, an order of court can be made instructing them to provide documents.
If the deceased had money with another individual in a joint bank account, then usually the surviving joint owner will gain control of the money.
There are different rules for pension pay-outs which usually depend on whether the deceased was retired or not. If they hadn’t yet retired, then most of the time there will be a lump sum pay-out. If they were retired, and they were in receipt of a pension from a defined benefit scheme, then a reduced pension may continue to be paid to a spouse or other dependent.
If they were getting a state-based pension, then you should inform the pension service that they have died, in order to stop the payments. When you contact the pension provider, they will be able to tell you how much they had, and what the next steps should be.
In the case of the executor or administrator not knowing the pension provider, contact their employer to see if there was a set up in place at the time of their employment.