Assets Included In Estate

[GTPork]

Hi all

Trying to find answers online to this one but struggling.

Question is: How do the various assets that are included in your estate get collated prior to distribution to beneficiaries?

I may have various ISAs, investment accounts, pensions and property etc. But if these are not specifically named in a will, how are they known to exist?

Cheers

[Doofus]

Presumably you have records? Make sure somebody knows where those are.

[GTPork]

I do yes, although need to get them in a nice concise folder should the worst happen.

But what if I didn’t? Is there a mechanism or body that knows what the deceased owned or does it just sit there for eternity

[pequod]

Assuming you have, at least, an annual statement from each of your investments, then your Executor will need to wait 12 months to establish your estate, or if you have regular interest/income arriving in a known bank account, that might speed things up.

Best to get everything in order in a file as you suggest?

[bigpriest]

Government services use the "Tell Us Once" process once the death is registered. It notifies a number of organisations so they can cancel services. The Financial side is a PITA - don't know why they can't have a similar service. Bank account and investment records don't always exist in paper form. You can include a codicil in a will that allows you to set out in more detail (or list specific items) you may want distributing. I suppose you could include a financial codicil with account names and contacts.

[Rufus Stone]

GTPork said:

I do yes, although need to get them in a nice concise folder should the worst happen.

But what if I didn’t? Is there a mechanism or body that knows what the deceased owned or does it just sit there for eternity

There was a newspaper article a few weeks ago about an old guy that puts his will and paperwork on his sofa every night in case he died in his sleep.

[alscar]

There is “ my lost account “ which will tell you about various Bank and BS accounts that may exist but having used it on behalf of a relative it’s not foolproof.
Individual shares can be often be traced by the share registrars like computer share.
Largely down to executors to find all the paperwork.

[Panamax]

The easy way to address this is to,
a) Make a Will, and
b) Put with the Will a list of assets to assist the Executors.

The Will can only be changed by formal process but the list of assets doesn't form part of it and can be updated from time to time as circumstances evolve.

[C69]

It's going to become even more of an issue in the future as more banks / providers move to entirely paperless accounts. There won't be a file of letters or statements for executors to look through.

[Tyrell Corp]

Choose your executor(s) wisely, executor is a huge responsibility and a lot can go wrong, this could also be a legal professional instead.

Make detailed paper list of all your assets and accounts, left with the lawyer storing your will. Also maybe passcodes for crypto or paypal accounts etc.

Make sure your family know where your will is stored -and if it has been altered keep them up to date.

Try to file your own records in order, separate a4 clip folders for each account, hole punch the letters, old at the back, new at the front.
This will make the task much easier for the executor -also if the assets are clear there is less chance of legal delays or beneficiaries squabbling.
I've been in the situation of executor twice.

[Random Account No6]

We (as do my parents and as did my grandparents) have it all filed away with the solicitor. Each year we have a quick chat to update it.


They are our ‘work’ solicitor but I’m guessing they’d do similar as a stand-alone service.

[Sheepshanks]

GTPork said:

I may have various ISAs, investment accounts, pensions and property etc. But if these are not specifically named in a will, how are they known to exist?

Other than stumbling across some mention of them, they're not - it's a blinking nightmare if the person (like my Mum did) regularly moved money around, opening and closing accounts.

I think with banks then credit checks will show accounts but I don't know the extent of that.

It make me wonder about the gifting and 7yr tapering rules - if the giver didn't tell anyone, or specifically note it, how would the authorities know if chunky amounts of money had been given away and then the account closed?

[Mogul]

It sounds like minefield.

Collecting full details of all financial assets would be one thing, but collating details of all physical assets, and agreeing valuations there on, could be a big challenge for some estates.

And it would appear that the executor more or less has to swear on oath that they know the nature of every disbursement (both monetary and physical assets) during the preceding seven years to ascertain whether or not there have been any gifts (as in failed Potentially Exempt Transfers).

I guess we all owe it to our heirs to keep our affairs in order, and to simplify things where possible.

I really have no ideas how common it would be for HMRC to challenge what an executor might choose to sign off on…

The prospective abolition of IHT is of course in the news again today, but I can’t see it happening.

Even if the tax was abolished, it may still be necessary to compile a a forensic summary of an estate to make sure that it can be divided as per the deceased’s wishes, and/or the intestacy rules.

[Marcellus]

My, now deceased, father in law every 3 months updated a file called “my estate” which was a ring binder on the shelf in his office.

Every quarter he’d update it and put the forecasted death duties into a separate “instant access savings account”.

He did that last update 2 days before he suddenly died of a heart attack whilst serving up his dinner.

It has made sorting his estate very easy for us, I might start to do the same.

[GTPork]

Marcellus said:

My, now deceased, father in law every 3 months updated a file called “my estate” which was a ring binder on the shelf in his office.

Every quarter he’d update it and put the forecasted death duties into a separate “instant access savings account”.

He did that last update 2 days before he suddenly died of a heart attack whilst serving up his dinner.

It has made sorting his estate very easy for us, I might start to do the same.

I imagine many would scoff at the idea but when the day comes it makes a huge difference at a very difficult time.

I need to pull my finger out

[The Leaper]

For my wife and I, I maintain a spreadsheet on a flash drive showing all the relevant information for our financial assets, plus other important similar information such as credit and other cards etc. This includes updating for switches and the like, as well as for latest values which I include whenever we receive latest statements etc. Separately, my wife maintains files with the hard copies of all relevant information. I discuss the contents of the spreadsheet with my executor maybe every 6 months or so, so he knows where the information is and he'll have latest information when required.

R.

[alock]

I had to collate and document everything as part of my divorce anyway. Now I just update this list a few times a year, print it out, and put it in my fireproof document safe. My kids know it's there, and where the key is.

Mine doesn't have all the values, just account names and numbers so nothing is missed.

[Tyrell Corp]

Also regarding the executor(s), bear in mind if there is any chance that car(s) or property assets might be kept by a beneficiary - being executor effectively debars them from selling it to themselves, even buying at top dollar and with any other beneficiaries all in agreement

Worth knowing if you want property to remain in the family, and any possibility that one might buy the other(s) out.

Edited by Tyrell Corp on Sunday 16th July 08:23