It is also a good idea to contact individual organisations to find out what their probate threshold is.
Financial institutions and organisations can determine their own probate thresholds, and probate may not be required to access funds if the amount being accessed is below the probate threshold.
Estate administration
Estate administration is everything else involved in dealing with the estate after probate has been granted.
This ranges from notifying any banks and other financial providers, in pensions, mortgages, credit cards, etc.
The administration also includes arranging the funeral, dealing with any property, and calculating and paying any IHT that might be owed on the estate.
These tasks all typically fall to the executor.
Every estate is different, and the tasks involved in the estate administration process can vary from client to client depending on what assets and investments they held.
But it can be a lengthy and stressful process for executors.
As the deceased’s financial adviser, you will most likely have all the relevant information relating to the client’s financial situation.
As a result, you’re best placed to provide support throughout the estate administration process and make life that little bit easier for the executors.
Helping executors identify reliefs
Another area where advisers can offer valuable support is by helping a client’s executor understand any IHT relief that may be available.
Rising property prices have meant more estates than ever are likely to face an IHT bill.
In fact, the amount of IHT collected is expected to reach £6.9 billion by 2023-24, an increase of £1.5 billion in just five years.
Helping executors to make use of any available IHT relief could save the beneficiaries, hundreds of thousands of pounds.
While everyone is entitled to a pass on £325,000 free of IHT (£650,00 for married couples and civil partners) - the threshold known as the nil-rate band - the estate might also qualify for an additional £150,000 (£300,000 for couples) of relief thanks to the residence nil-rate band.
This is a difficult but an important calculation to get right.
Unfortunately, it is not always clear cut how much relief an estate can claim, as certain tapering restrictions might apply in some cases where the estate is worth more than £2m.
It is unlikely that an executor will be able to do this without your help.
On the Octopus Investments website you can use the residence nil-rate band calculator to get a feel of how much IHT might be owed on an estate.
Business property relief
