Steps to Take When Managing An Estate

Receiving an inheritance can be a life-changing event that provides you with new opportunities. But it also requires some careful planning and decision making to ensure that this wealth is handled wisely.

Follow these best practices when acting as an executor and beneficiary of a will in the UK.

Pay Any Inheritance Tax Due

If the estate exceeds the current inheritance tax (IHT) threshold of £325,000, any amount above that is subject to IHT at 40%. For example, if you inherit £400,000 and no IHT was prepaid, the amount above £325,000 is £75,000. £75,000 x 40% = £30,000 owed in IHT.

However, there are many exemptions, and it can also be challenging to construct a detailed picture of the estate of the deceased. A suitably qualified solicitor can really help.

Pay Outstanding Debts

Before distributing inheritances, any debts like loans, taxes or fees owed by the deceased must be paid from their estate.