Estate Administration – What Are The Risks Of Doing It Yourself?
Over the past few years there has been a move towards individuals administering a deceased’s estate themselves, rather than turning to a specialist who can offer legal advice and assistance throughout the Probate process.
If the Estate is straightforward then ‘doing it yourself’ can work for many.
However, there are complicating factors that quickly turn a seemingly straightforward administration into a legal minefield, some of which may include:
• Homemade Wills
• Second marriages
• Minors
• Feuding family members
• Trusts created in the Wills
• Distrust of the Executors/ Administrators (‘Personal Representatives’)
Why do people want to administer the estate themselves?
Most of the time it comes down to saving time and cost.
However, incorrectly or partially administering an estate can end up costing far more than it would have done had you sought legal advice from the beginning.
Due to the Covid-19 lockdown an increasing number of people have additional time on their hands and are deciding ‘to have a stab’ at administering the estate themselves. Again, if proper legal advice is not sought from the start the whole process could end up taking a lot more time than it should; due to delays correcting errors or finding out that the process is not as straightforward as you initially thought.
What are the risks if it goes wrong?
Personal Representatives are personally liable for any financial loss that they may cause to an estate, whether on purpose or by accident (perhaps due to an innocent oversight or because they simply didn’t have the required knowledge).
Of course, there are also financial penalties which can be imposed by HMRC for errors, missing information or the incorrect payment of Inheritance Tax. HMRC are becoming a lot stricter in their application of the penalties.
Wills are often drafted using legalistic language which, if not properly understood, could result in an estate being incorrectly administered. If this did happen, the wronged beneficiaries may sue the Personal Representatives for any financial losses that they have suffered.
If mistakes are made then relationships between Personal Representatives and Beneficiaries can quickly and irretrievably breakdown as the trust in the Personal Representatives to carry out a good job has been lost.
Correcting mistakes or seeking legal advice part way through an Estate Administration can often result in increased costs and delays as the mistakes are ‘unpicked’ and remedied.
Is there any good news?
Yes. Our friendly and knowledgeable Wills and Probate Team have almost 70 years of collective experience in advising and guiding clients through the Estate Administration process.
Timms are always happy to advise Personal Representatives following the death of a loved one to explain the contents of a Will or the Intestacy Rules (where there is no Will) or to advise regarding the process for administering the estate correctly.
We can offer a fixed fee or hourly rate service to deal with the Estate Administration on your behalf from start to finish, or simply to obtain the Grant of Representation and/or provide advice specific to your matter. Please feel free to get in touch with us to discuss this further.
If you would like to get in touch in relation to an Estate Administration, Wills or Lasting Powers of Attorney, please do not hesitate to contact Charlotte Day on 01530 561 531 or c.day@timms-law.com.
Charlotte Day
May 2020