The personal representative

The person who deals with everything owned by the person who died is known as the personal representative (also known as the executor if they are named as such in the will, or the administrator if there is no executor named or no will) if the deceased got a social security benefit or pension, the personal representative should tell social security of the death as soon as possible.
 
Wherever the death occurs, it is important to find out if the deceased left a will, and if so who the executor is. The will says what should happen to the deceased’s money, property and possessions (known as the estate). The personal representative is responsible for paying all the deceased’s debts, taxes and expenses, including funeral expenses. They make the payments from the estate, not their own income or savings. Only when these duties are finished can the personal representative share out the rest of the estate.
 
If you are a personal representative you may have to apply to prove the will or, if there is no will, apply for letters of administration. This will give you permission to pay the bills and deal with the estate.

Normally debts, including funeral expenses, are paid out of the deceased’s estate. Relatives do not have to pay them out of their own income or savings. But if there is no estate to pay for the funeral, the personal representative is responsible for paying all the debts of the estate.

When all expenses, debts and taxes have been paid, the personal representative may then distribute anything left of the estate. If there is a will, the personal representative will follow the instructions in the will to carry out the wishes of the person who died.

Marriage will cancel any will made in most countries. After a divorce, a former spouse cannot get anything left to them from the will, unless the will clearly says otherwise. Divorce may also prevent the former spouse acting as a personal representative.

If there is no will, the personal representative can then distribute anything left of the estate. The personal representative shares out the estate according to rules that consider the rights of a surviving spouse, children, parents and other close blood relatives.

Whether you are related or not, you can apply for share of the estate if you were being supported financially in any way by the person who died, immediately before the death.  If you qualify you must apply within 6 months of the date on which probate or letters of administration are taken out. The court can allow later application in special circumstances. Get legal advice on how to do this.
 
Do not be rushed into parting with goods before taking legal advice. Hire purchase goods cannot be repossessed after a third of the purchase price has been paid unless the firm gets a court order. Where a deceased partner has left a debt, you may need to check with an advice centre or a solicitor about any liability for the debt.

If the person who died was paying tax or income from investments or as a self-employed person or as an employee, tell the tax office about the death as soon as possible. This will enable the deceased’s tax affairs to be settled. Depending on the circumstances, this may involve paying some more tax or claiming a repayment.
 
The particular tax office to contact will depend on the deceased’s circumstances. For instance:
 
* If the deceased’s was an employee or had a pension from a former employer, the pay section of the employer or pension organisation will know the deceased’s tax office
* If the deceased was self-employed, contact the tax office nearest to the place of business
* If the deceased was unemployed, or retired without a pension from a former employer, contact the tax office nearest to the home address.

If you have any difficulty in dealing with the deceased’s property, possessions or guardianship of their children, get advice from a solicitor or Citizens Advice Bureau as soon as possible. Get the leaflets legal aid guide and getting legal help from a Citizen Advice Bureau, public library, police station or court, to find out if you can get legal aid. These places also hold a list of local solicitors which shows whether they take legal aid cases and if they specialise in probate work.

You should return the following, with a note of explanation and the date of death with each of the documents:
* Order books, payable orders, or giro cheque to the social security office or other office which issued the payment. This applies also to a child benefit book which includes payment for a child who has died.  Orders should not be cashed after the death of the person. It may be useful to keep a record of pension book numbers or other social security numbers before you send anything back
* The deceased’s passport to the UK Passport Agency, Clove House, 70 78 Petty France, London, SW1H 9HD
* The deceased’s driving licence to Driver Vehicle Licensing Agency, Longview Road, Swansea SA6 7JL
* The registration documents of a car, for the change of ownership to be recorded
* A season ticket.  Claim any refund due
* Membership cards of clubs associations.  Claim any refund due
* Library books and tickets
* Any National Insurance Papers to the relevant office
* Any NHS equipment such as wheelchairs, hearing aids, artificial limbs.

The local social services department of the council if the person was getting meals-on-wheels, home help, or day-centre care or had an appliance or piece of equipment issued by the department
Any hospital the person was attending
The family doctor to cancel any home nursing
 
* The Inland Revenue
* A child or young person’s teacher, employer or college if a parent, brother,
sister, grandparent or close friend has died
* A car insurance company (if you are insured to drive the car under the deceased’s name,
you will ceased to be legally insured)
* The deceased’s gas, electricity and telephone suppliers
* The local housing department if the person who has died was living in council house
* The Local Council Housing Benefit/ Council Tax Benefit Section if the person who has died was getting Housing Benefit and /or Council Tax Benefit
* The post office so that they can redirect the deceased’s mail.

When death duties were brought in a hundred years ago, they were only ever meant to tax the super rich. But the endless rise in house prices means thousands of ordinary people face paying today's equivalent-inheritance tax. Many family homes are now worth more than the £325,000 inheritance tax threshold and once retirement savings are added in, even more people are caught in the net.

Q: What is inheritance tax?
A: It is a levy on your estate (home), savings, car and other valuables when you die. If it is worth more than £325,000 your beneficiaries will have to pay 40 percent tax on the rest.
For example if your home was worth £325,000, you had £25,000 in savings and a car worth £10,000 and owed £5,000 including funeral bills, your estate would be worth £365,000 net. That's £40,000 above the tax threshold on which you would pay £16,000 tax.

Q: How long have you got to pay it?
A: PAYMENT IS DUE SIX MONTHS AFTER THE END OF THE MONTH IN WHICH DEATH OCCURRED.

Q: What if the house has to be sold to pay tax?
A: Interest is charged on any tax not paid by the due date, no matter what caused the delay.

Q: What if I leave everything to my spouse?
A: Everything let to a spouse is a tax free. But when the survivor dies, your children may be liable.

Q: What if we each leave half the house to our children?
A: If your spouse continues leving there rent free, the taxman may say he or she owns it.

Q: Can the tax be reduced?
A: Yes, there's a lot you can do. Anything given away seven years before you die is exempt from tax, for example.

Q:What if you give money away but die within the seven years?
A: The tax is staggered over the seven years so you would still save some money.

Q: What other concessions are there?
A: A husband and wife are each allowed to give away up to £3,000 a year without tax being paid on it. You can also offer an unlimited number of gifts of £250 or less. In addition you can make wedding gifts of up to £5,000 to each of your children and up to 2,500 to each grandchild.

Q: What if I leave money for charity?
A: All outright gifts made to charities are completely free of inheritance tax.

Q: Are there any other ways to minimise the potential tax bill?
A: You can also put money into a trust for the benefit of your children or grandchildren, for example, whatever you do, consult an independent financial adviser. They can also help you draw up a will.

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