Estate Accounts

diamond_dave

Can anyone point me in the direction of good sample estate accounts. I have googled it but there doesn't seem to many decent ones available. As I am executor and the family are beneficiaries I want to ensure all is above board and no-one can complain.

back_against_the_wall

I assume you are an executor named in the Will of a relative, with a view to managing the estate and the distribution of the assets of the estate to the beneficiaries named in the Will. Not sure what you mean exactly by "estate accounts". This only really applies if there is income accruing to the estate during the "administration period", ie the period between the date of death of your relative and the distribution of the estate to the beneficiaries. You then have to complete a tax return for this period in settling the affairs of the deceased with HMRC. Depends really on what the assets of the estate are. If there is no income accruing to the estate during the "administration period" it is really just a case of distributing the assets of the estate in accordance with the terms of the will. No need for HMRC to be involved. Can't really advise you further unless you give more details regarding the assets to be distributed and whether, as in the case of investments held by the deceased, these are still generating income. If the affairs of the estate are very complicated you really need to consult a solicitor. Hope this helps.

TonyMMM

All you need to provide is a simple 2 column account .... Assets of the estate listed on one side, and expenses and costs on the other ... e.g. any insurances, utilities and executor costs(you can charge for expenses you incur as Executor, such as probate charges, certificates, phone , stamps etc., but not for your time)

Then show the balance being distributed according to the Will.

Send a copy to each beneficiary when you distribute the proceeds.

trulys

I found this a really good example of how to set out the estate accounts.

A really good book you can get out from the library to help anything you might be stuck on is Probate by Gordon Bowley - you can hire it from the library. Gordon Bowley was a solicitor who initially wrote the guide for his wife, so that she could deal with his estate if ever she needed to!! Its really simple to understand and has sample letters, etc. at the back of the book you can use during the whole process. Highly recommend that one!

nige123

I'm puzzled by how to account for one small item in drawing up estate accounts:

During administration, a washing machine repairer scratched a floor, and paid a small sum in compensation. The floor was already in far from pristine condition and the compensation was banked with no repair made to the floor.

Should this be accounted for as income, and does that mean it's taxable? The amount? - a whole £20

dzug1

My take on it is that it's a capital payment and therefore not subject to income tax

Either way I can't see HMRC worrying too much about £4 tax.

John_Pierpoint

It is important to distinguish between capital and income.
Some accrued but not yet paid income will get clobbered for for both IHT and Income tax.
I would advise sending an R185 to each beneficiary covering every payment of income in each tax year.

If a beneficiary is a higher rate tax payer the situation can get really confusing.