When someone passes away, it is often quite difficult to identify everything that they had owned. As a result, the process of finding these assets can be quite lengthy and if new assets are found during Probate or after the process has completed, this can impact on the Estate’s tax liability. It can also mean that some of the Probate steps that have already been taken will need to be repeated. In this article, finding additional assets after probate has completed UK, we take a look at the impact of finding additional assets after Probate has completed.
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What is the process of locating the deceased’s assets?
A lot of people keep their personal affairs private, even from their family members. Consequently, one of the biggest hurdles to overcome is to actually find all the assets belonging to the deceased.
A sensible and practical way to start is to have a thorough search of the deceased’s house in order to try and uncover any paperwork relating to hitherto unknown assets. Contact all the relevant banks and other financial institutions that the deceased was known to have dealings with as they should be able to offer you some guidance. It would also be a good idea to re-direct the mail of the deceased as this may shed some light on assets held.
Finally, there are databases which list all of the unclaimed assets in the UK. Searches of these databases, such as Unclaimed Asset Register and Landmark Financial Assets, may mean a Personal Representative discovers assets which the deceased may have forgotten about. There may be a fee attached to using these services.
What should you do If additional assets Are Found After Probate?
If an additional asset is discovered after the issuing of the Grant of Probate, you will need to have the new asset valued. You will also need to take instructions from the institution which manages the asset (i.e. the bank) to see if they need to see the Grant of Probate in order to release the asset to you as the Personal Representative.
The value of the new asset needs to be added to the value of the Estate, which was included in the application for the Grant of Probate in the first place.
Potential implications for Inheritance Tax
If there is a change in the total asset value of the estate due to the discovery of new assets after probate, this could have implications for inheritance tax.
In such situations, you will need to make sure you report the new Estate valuations to HMRC and arrange to pay the outstanding tax and any interest which has accrued on the tax account. Interest will accrue on the total sum of Inheritance Tax, six months after the date of death, even if the total sum of Inheritance Tax was not initially known.
If the institution which manages the asset confirms they need to see the Grant of Probate then it will be necessary to obtain a second, or amended, Grant. This is because, the first Grant obtained will not state the correct value of the Estate and, as such, can only be used to deal with the assets which were accounted for initially.
What happens if the Estate Has Already Been Distributed?
If the Estate has already been distributed to the Beneficiaries when the new asset is discovered, it will be necessary to involve the Beneficiaries of the Estate as their entitlement may have increased in line with the overall Estate value. The Personal Representative would also need to update the Estate accounts and ensure these are distributed to the Beneficiaries accordingly.
After someone dies, identifying everything that they owned can be far from straightforward. If new assets are found during Probate or after the process has completed, this can impact on the Estate’s tax liability. It can also mean that some of the Probate steps that have already been taken will need to be repeated.
How we can help
We have a proven track-record of helping clients deal with the process of probate. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact our Wills and Probate Solicitors
It is important for you to be well informed about the issues and possible implications of dealing with probate matters. We can provide the support and guidance you need to get through the process as simply and straightforwardly as possible.
To speak to our Wills and Probate solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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