Managing an estate – what to do when someone dies

HMRC have just updated their guidance “what to do when someone dies”.  This is a step by step checklist, which allows you to make sure you have not missed anything.

The list includes:

• Registering the death;
• Arranging the funeral;
• Telling the Government about the death, by using the “Tell Us Once” service;
• Checking eligibility for benefits;
• Dealing with pensions and taxes, and
• Dealing with the Estate.

Most of these steps will not require any professional help but, at various points, you may need to seek advice from a specialist.

Here at Lambert Chapman LLP, we can assist with preparing Estate Accounts and Tax Returns.

Not all Estates need to file Tax Return

Tax Returns for the administration period, which is the period between the date of death and the date on which the Estate is settled/distributed, are required if any of the following apply:

• The total Income Tax and Capital Gains Tax due for the administration period was more than £10,000.
• The Estate was worth more than £2.5 million at the date of death.
• More than £500,000 a year came from the sale of the Estate’s assets.

If a Tax Return is required, then the Estate must register online to get a Unique Taxpayer Reference (UTR).  Lambert Chapman LLP can assist you or your Solicitor with this process.

If none of the above apply, you can liaise with HMRC on an information basis to settle any tax due and, again, we can help with preparing the report for submission and liaise with HMRC on your behalf to reach agreement.

You can read the gov.uk guidance on what to do when someone dies in full here

Please contact Lucy Orrow if you require further advice on this matter.