Proposed changes to the Employment Tribunal and Civil Court system

The Law Commission has published its long-awaited report on Employment Hearing Structures which recommends reform to the employment tribunal and civil court systems.   It has been recognised that there is an awkward area of shared and exclusive jurisdiction which has led to anomalies between the civil courts and employment tribunals.  The Law Commission has also made it clear that employment tribunals were designed to have different characteristics to the civil courts and its recommendations to a degree reflect those characteristics and the specialist nature of the employment tribunal.

There are a total of 23 recommendations, the most important of which are as follows:-

  1. All time limits for employment tribunal claims be extended to six months. Most claims currently have a three-month time limit;
  2. There is a single test for extending time in all claims on the basis as to whether it is just and equitable to do so instead of the ‘reasonably practicable’ test;
  3. Time for bringing an equal pay claim to be extended where it is just and equitable to do so;
  4. Expansion of the jurisdiction of the employment tribunal in breach of contract claims and a recommended increase in the value of such claims from the current £25,000 to £100,000;
  5. Expansion generally of the jurisdiction of the employment tribunal to hear contractual claims to workers as well as employees, to include those breaches that arise during the course of employment and not just those at the termination of employment, and can include hearing claims relating to post-termination breaches;
  6. Employment judges to hear discrimination claims in the civil courts and creating a specialist list in the Queen’s Bench Division of the High Court to deal with employment and discrimination claims. This will include restraint of trade, confidential information, equal pay and industrial action injunctions;
  7. The High Court specialist list would also deal with appeals from the County Court in goods and services discrimination claims and from any other employment related cases;
  8. Employment Judges to lend their expertise to the County Court in discrimination cases;

This is welcome news and if implemented will produce an updated employment tribunal system combined with the expansion of employment law claims into the civil court system.

If you have any questions then contact Steven Eckett – Partner and Head of Employment at Meaby & Co LLP

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Where does your money go, if you do not make a Will?

I’m not making a Will, if I die my spouse will get everything? Not necessarily…

Who should make a Will? EVERYONE!

If you die without making a Will then your assets (this includes money, property, personal possessions, shares, cars etc) will be distributed in accordance with the intestacy rules.

What are the intestacy rules?

The intestacy rules govern what happens to a person’s estate if they die without having made a Will, revoke a Will they previously made or make an invalid Will. In all these circumstances the intestacy rules will determine who inherits.

There is an order of priority which sets down who receives an estate and the order in which they receive it:

  1. The surviving husband or wife;
  2. The children of the deceased and the issue of any deceased child who died before the deceased;
  3. The father and mother of the deceased;
  4. Brothers and sisters of the whole blood and the issue of any deceased brother or sister of the whole blood who died before the deceased;
  5. Brothers and sisters of the half blood and the issue of any deceased brother or sister of the half blood who died before the deceased;
  6. Grandparents;
  7. Uncles and aunts of the whole blood and the issue of any deceased uncle or aunt of the whole blood who died before the deceased;
  8. Uncles and aunts of the half blood and the issue of any deceased uncle or aunt of the half blood who died before the deceased.

OK, so my spouse will get everything? No!

The spouse or civil partner currently receives:

  • all personal possessions
  • a statutory legacy of £270,000 (if there are children and issue) or £450,000 (of no children or issue)
  • The rest of the residuary estate is split equally into two halves. The spouse or civil partner takes one half absolutely and the other half on the statutory trusts either to children, parents or siblings.

It is not always the case that the spouse will get everything. It depends on the value of the assets and how they are held.

Example 1

Mr Meaby died on 3 March 2020 leaving a wife and two sons. His daughter Jane died in 2009 leaving two sons Barry and Harry. Mr Meaby’s estate is £1.2million including the house (£600,000) which is held in his sole name.

Mrs Meaby will receive a statutory legacy of £270,000, the personal possessions of Mr Meaby and then one half of the remainder absolutely. The remaining £465,000 will be divided as to one third each for John and Fred and the remaining one third (Jane’s share) for her sons Barry and Harry.

Mrs Meaby may feel that she does not have sufficient assets for the rest of her life and she may want to make a claim for reasonable provision under the Inheritance (Provision for Family & Dependents) Act 1975

Example 2

Mr Meaby dies on 3 March 2020 leaving a spouse and three siblings. Two other siblings died before him, one leaving 3 children and the other leaving none. Again Mr Meaby’s estate is £1.2million including the house (£600,000) which is held in his sole name.

Mrs Meaby will receive a statutory legacy of £450,000, the personal possessions of Mr Meaby and then one half of the remainder absolutely. The remaining £375,000 will be divided as to one quarter each for Bob, Marge and Jim. The remaining one quarter (Violet’s share) is for her sons Tom, Rob and Paul.

In the above example, would Mr Meaby want his siblings to inherit? Possibly not. This is why it is important to make a Will ensuring your estate goes where you want.

What happen if you don’t have a spouse, children, parents alive or siblings. We are then looking for cousins, second cousins etc. If there are no surviving relatives then the estate will pass to the Crown.

If you need a Will or more information on how your estate will be distributed then  please contact Esther Janalli-Brown on 01306 884432 or email ejbrown@meaby.co.uk for more information

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An update on Furlough leave

According to HMRC, 185,000 employers submitted claims on the first day of the launch of its online portal (20 April 2020).  These claims alone are worth £1.5billion and represent 1.3million UK employees.

The British Chamber of Commerce has also provided up to date statistics which show that between 15-17 April 2020,  71% of employers in the UK had furloughed staff which is up from 66% the previous week.  The British Chamber of Commerce has also launched a tracker which measures the Covid-19 pandemic’s impact on businesses and the effectiveness of Government support measures.

When broken down these statistics also show that  30% of businesses had said that they had furloughed 75% or more of the workforce.

One of the biggest concerns for employers is cashflow with 59% of businesses suggesting that they have only three months’ or less cash reserves.

These concerns are heightened further when HMRC has had such a short period of time since the launch of its online portal on 20 April,  to ensure that staff receive their pay by the end of the month.

HMRC has pledged to deposit funds to employers within 6 working days which means for example that those businesses that applied on the first day the portal was launched should receive payments on or about 28 April 2020.

The Coronavirus Job Retention Scheme has recently been extended by the Chancellor of the Exchequer for an additional month to 30 June 2020 and has changed the eligibility date for staff who were on the payroll from 28 February to 19 March.  There are however still problems for staff who were on the payroll as at 19 March but who did not have Real Time Information (RTI) submitted to HMRC by then, who are still excluded and are not eligible to be paid under the scheme, which is somewhat unfair.

At the time of writing, HMRC has also provided helpful guidance on a discrepancy between the Treasury Direction and HMRC Guidance.  The Treasury Direction requires employees to agree to cease all work in writing whereas conversely HMRC guidance states that written agreement from the employee is not necessary.

HMRC has attempted to clarify this and has stated that employers should follow the Guidance with the crucial paragraph stating ‘the employer and the employee must reach an agreement and an auditable written record of this agreement must be retained.  It does not necessarily follow that the employee will have provided written confirmation that such an agreement was reached in all cases’.

In practice, this means that HMRC will not deny an employer the ability to reclaim funds simply on the basis the employer had not obtained written agreement from the employee to cease all work for the employer.

The Furlough scheme will no doubt throw up some more anomalies as the system beds in and we see how efficient it actually is in ensuring the Furloughed staff are paid in a timely manner.

If you have any concerns about the Furlough scheme either as an employer or as an employee then contact Steven Eckett – Partner and Head of Employment at Meaby & Co LLP.  seckett@meaby.co.uk or 020 703 5034.

 

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PROBATE AND DEALING WITH A DECEASED’S ESTATE

Dealing with the affairs of someone who has died is often a daunting and stressful task at what is clearly a difficult time.

Issues can arise regarding rights of access to the deceased person’s estate and what happens if the deceased person has not made a Will.

After someone dies, if there is a Will and an Executor has been appointed, their money, property and possessions need to be dealt with by the Executor named in the Will. This means that they make sure that the spouse or civil partner is aware of the right to distribute the estate in accordance with the Will and the law.

Where there is no Will, an administrator is appointed, and this will usually be the next of kin or a Solicitor. There are various steps that need to be followed in order to obtain probate. This can be complex, and it is advisable to appoint a Solicitor at Meaby & Co Solicitors to do the job. The Solicitor will be paid out of the estate and will take over the burden of administering the estate at what is an extremely difficult, upsetting and stressful time for the family.

STEPS TO BE TAKEN

  1. Going through the deceased’s paperwork to locate a Will. If there is no Will, the next of kin who can take on the role of administering the estate will need to be identified. If there is any doubt about who is entitled to be the administrator, the issue will be decided by the Probate Registrar. You should also bear in mind that any individual may oppose a Grant of Probate or Letters of Administration. They may lodge a caveat (objection) in the District Probate Registry or at the Probate Office. If this happens, Meaby & Co Solicitors will deal with the issue and assist in resolving any problems in order for the process to proceed.
  2. The Executor or next of kin will have to locate all of the deceased’s documents to include bank statements, mortgage documents, utility bills, passport, correspondence from official institutes e.g. Department for Work and Pensions (DWP) premium bonds etc. If Meaby & Co Solicitors are instructed by you, we will take over all of the paperwork from you and deal with notifying all parties, closing accounts, pay utility bills, mortgages etc. and distribute the residue (balance) of the estate remaining in accordance with the Will. If there is no Will, distribution will be in accordance with the Intestacy Rules.
  3. An advert will be placed in the Gazette and the Law Society Gazette requesting any creditors to come forward with any debts that may be outstanding debts owed to them by the deceased.
  4. Pay any debts owed.
  5. Pay the funeral expenses, if they haven’t already been paid.
  6. Distribute the estate and finally transfer the property into the surviving legal owners or beneficiaries name(s).

If the deceased was in receipt of a pension and/or benefits we must inform the Department for Work and Pensions (DWP) to enable them to reclaim any overpayment that may have been made.

Further information and assistance can be obtained by calling one of our specialist, skilled and professional Probate Solicitors at 020 7703 5034 or by email at mwaters@meaby.co.uk.

 

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Family Law During the Coronavirus Pandemic

Our Family Law Team

Our Family Law Team remains fully operational during the lockdown period. The only difference that clients will notice is that we are no longer arranging face to face consultations. Instead, we are offering consultations via the Zoom digital platform. The technology is very ease to use and we can guide you through process.

We are also able to offer Family Mediation – both MIAMs and joint sessions, by Zoom.

We are experiencing some delays in case progression as some courts are closed and others are operating with reduced staff numbers. Stages of a case that demand the delivery of signed hard copy documents are also proving a little tricky to organise, but most problems can be overcome.

Court hearings

Although the situation with regard to court hearings was chaotic during the first few days of the lockdown, things have settled down now and the President of the Family Division has issued guidance to judges, court staff and practitioners in the Family Court, which has been updated on a regular basis.

The court will do its best to ensure that a case is progressed in some way, if at all possible. The vast majority of hearings are taking place remotely either via telephone or video conferencing. Each court has a slightly different preferred way of dealing with this and it is unlikely that the exact arrangements will be confirmed until the day before.

A small number of courts have been closed completely. If you have a hearing in one of those courts, you should check the court’s website on a regular basis. The most common website message seems to be “Don’t call us, we’ll call you”.

Some cases have been adjourned administratively, without a hearing.

Arrangements for Children

By far the most common enquiry we have received has been from separated parents who have been unsure as to what should happen with regard to the arrangements for their children.

The Government advice is clear “Where parents do not live in the same household, children under 18 can be moved between their parents’ homes”. Therefore, parents should continue to abide by any agreed arrangements or arrangements under a court order unless there is a risk to the welfare or health and safety of a child or another member of either household. Common sense needs to be applied.

The full guidance from the President of the Family Division and Head of Family Justice can be viewed here

https://www.judiciary.uk/announcements/coronavirus-crisis-guidance-on-compliance-with-family-court-child-arrangement-orders/?utm_medium=email&utm_source&fbclid=IwAR3XBGDhcsqT_rxojvrgKbX7II7z8y1raA8Q2YZvaQj6t_VB9jw7sSl_LIc

The Children and Family Court Advisory Service has also issued some helpful advice, which can be viewed here

https://www.cafcass.gov.uk/grown-ups/parents-and-carers/covid-19-guidance-for-children-and-families/?fbclid=IwAR3hIneeBFvhrM9Jii0OmeXChpmYtAuyba79iIvapNegsK3xppmJQ6w6-SI

If an urgent application needs to be issued in respect of a child, the new online digital system should be used, if possible. However only the parents of a child (or solicitors representing them) are able to use this system. It is a relatively new system and I used it for the first time in the last couple of weeks. I was pleased to see that it now appears to be possible to combine an application in respect of children with an application for a Non-Molestation Order by ticking the right boxes.

Domestic abuse

The National Domestic Abuse Helpline has seen a 25% increase in calls since the lockdown and the Counting Dead Women project has identified 16 domestic abuse killings in the UK during the period, which is more than double the number for the same period in previous years.

It is likely that the restrictions on movement have heightened domestic tensions and limited escape routes.

The government guidance is clear that domestic abuse victims are permitted to leave home to seek help. The government has launched a new campaign “At Home Shouldn’t Mean At Risk” which is being publicised via social media.

Anyone in immediate danger should call the police on 999 and press 55 on a mobile if they are unable to talk. The National Domestic Abuse Helpline number is 0808 2000 247.

For advice and help with all Family Law matters, please contact our Head of Family Law, Joanna Toloczko on 020 3861 5155 or at jtoloczko@meaby.co.uk

 

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The 2020 Government Advice Note on Cladding

Over the last 20 years, many high-rise buildings in the UK have been built with exterior finishes which comprise of metal sheet cladding. The type of cladding material on the exterior of the Grenfell Tower was the main cause of the fire spread in June 2017. Grenfell Tower was built with Aluminium Composite Material (ACM) cladding on the exterior. This type of cladding was later found to have no flame retardant properties.

It has been a legal requirement since the 1980s in accordance with Building Regulations, to consider the risk of all buildings from fire spread. The Regulatory Reform (Fire Safety) Order 2005 also requires that any purpose-built block of flats, regardless of height, should have an up to date fire risk assessment and appropriate fire precautions in place.

Following the Grenfell Tower tragedy, the Ministry for Housing Communities and Local Government published Advice Note 14 (AN14) in December 2018. AN14 aimed to address concerns about the fire safety implications of systems which did not incorporate Aluminium Composite Material and provide guidance for anyone responsible for, or advising on, the fire safety of external wall systems of residential buildings 18 metres or above in height.

The risk of both ACM and non-ACM cladding on high rise buildings and changes to building regulations and government advice on guidance, has affected the ability of leasehold owners of such flats to sell or re-mortgage their properties.

In late December 2018, RICS, the Building Societies Association and UK Finance, agreed an industry-wide External Wall Fire Review process to be used by valuers, lenders, building owners and fire safety experts in the valuation of high-rise properties. The process requires a fire safety assessment to be conducted by a suitably qualified and competent professional and confirmed using Form External Wall System 1 (EWS1). One assessment is required for each building and remains valid for five years. Government advice does not require an EWS1 to be completed to demonstrate compliance, but it has acknowledged the existence of the form.

In January 2020, the Government published a further Advice Note which now supersedes AN14 and all other previous Advice Notes. The latest advice states that the owners of all multi-storey, multi-occupied residential buildings should investigate and remedy the risks of combustible cladding.

The government has also announced its intention to introduce a Fire Safety Bill which will clarify that building owners and managers of multi-occupied residential buildings of any height must fully consider and mitigate the risks of any external wall systems and fire doors in discharging their duties under the Fire Safety Order.

Many mortgage lenders require an EWS1 certificate to be issued as a condition of offer where there is cladding present on the building. This certificate needs to be signed by an independent qualified professional adviser who belongs to one of 21 professional bodies recognised by MHCLG. This can take several months to obtain as there are a shortage of inspectors qualified to undertake the EWS1 process (and many inspectors are unable to obtain professional indemnity insurance cover for such checks) As a result, a large number of homeowners nationwide, are finding it difficult to mortgage, re-mortgage or sell their properties. The Royal Institution of Chartered Surveyors (RICS), UK Finance and the Building Societies Association are still working to find a solution to the issue.

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Want to be rid of your landlord but buying the freehold isn’t an option for you? Read our note about the Right to Manage procedure:

Email the Leasehold Property Team: leaseadvice@meaby.co.uk

What is the right to manage?

The right to manage (RTM) provides leaseholders with the right to transfer management of the building from the Landlord to an RTM company. This company will be comprised of the leaseholders of the building. The company will then make decisions regarding annual budgets, repairs, services provided, major works and any other management functions.

The RTM can be acquired without the landlord’s permission and there is no requirement to prove that the landlord’s management is unsatisfactory. However, the building and leaseholders must meet certain requirements. The main requirement is that at least two-thirds of the flats must be let to qualifying tenants. A qualifying tenant is a leaseholder with a lease of more than 21 years (from the date that it was granted).

What is the legal process?

  1. Establish with your solicitor whether you meet the requirements.
  2. Form the RTM Company (this must be formed of qualifying tenants totalling at least half of the number of flats in the building).
  3. Send a notice inviting participation to all qualifying leaseholders who are not at the time part of the RTM company.
  4. Serve a notice of claim on the Landlord. This is the document that exercises the RTM and sets a date for when the RTM Company will take over management functions.
  5. Provided there is no dispute of entitlement in the counter notice from the Landlord, the RTM Company takes over management on the acquisition date stated in the notice of claim.
  6. Register the RTM with the Land Registry.

Should I consider acquiring the RTM?

Common reasons that leaseholders acquire the RTM are:

  • To keep the costs of managing the building to a reasonable minimum;
  • To ensure that their asset (their flat) is protected and carefully looked after;
  • To ensure repairs are carried out promptly and in a cost effective manner;
  • If they feel that the Landlord is not adequately managing the building; and
  • If they are concerned about the costs of repairs or major works

 

 

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How to minimise a dispute over your Will – 5 action points to consider

COVID-19 has resulted in some law firms reporting up to a 300% increase in new enquiries in the last month to get a Will drafted. The urgency among the British public to make a Will is understandable in these current circumstances. However, all too often, our lawyers are instructed to assist in resolving disputes relating to Wills. Therefore, we wanted to take this opportunity to set out five common areas of disputes relating to Wills, we also set out suggestions to help avoid such disputes from occurring.

  1. Undue Influence on the person writing the Will

A person making a Will (known as a “the testator”) must be free to draft the Will to reflect their wishes.  Unfortunately, all too often we see cases where individuals have been accused of exerting undue force or pressure to encourage the testator to draft the Will in terms which are more favourable to one party over others.

Suggestion: If you are in the process of drafting a Will, take care to ensure it truly represents your wishes and desires. No one should be applying any undue influence on you during this process.

  1. Reasonable Financial Provision has not been made for an individual

The Court have the power to re-write the terms of the Will pursuant to the Inheritance (Provision for Family and Dependants) Act 1975. This situation commonly occurs, for example, where an individual is a dependant on the deceased and has been left out of the Will. Where a party has been left out of a Will, they may commence proceedings under the 1975 Act and request the Court to make an Order that the assets are redistributed to ensure there is a fair outcome.

Suggestion: Consider whether you have left out any immediate family members or dependants from your Will. If so, consider having a frank and transparent conversation with anyone you intend to leave out and ensure your intentions are carefully noted. Before or at the time of writing a Will, you could also consider writing a letter of wishes which would provide better insight as to why the Will has been written in its current terms. Whilst this may be difficult, it could assist in preventing disputes later down the line.

  1. The Testator lacked the mental capacity

A common dispute which arises after the testator has died is whether they really had the mental capacity to make the Will. All too often we receive complaints from interested parties who allege that the testator could not have had the mental capacity to draft the Will and therefore the terms of the Will cannot possibly reflect the true wishes of the testator.

Suggestion: Shortly before writing a Will, it is often a good idea to ask your GP or health professional to provide a brief opinion as to your mental capacity and well-being. This medical opinion should be documented and kept safely with your Will. This will reduce the chances of a dispute regarding your mental capacity at the time of making your Will.

  1. The Will is unfair

Just because a Will is unfair does not automatically mean there is a legal remedy. In the first instance an interested party should see whether any of the above claims can be made out. To obtain clarity of the circumstances surrounding the drafting of the Will, an interested party can send a Larke v Nugus letter to the solicitor who drafted the Will. This letter is essentially a letter of request for an explanation as to the circumstances surrounding a Will being made.

Suggestion: Before or at the time of writing a Will, you should consider also writing a letter of wishes which would provide better insight as to why the Will has been written in its current terms. This would be particularly important where a party who may have expected to have been a beneficiary under the Will has been left out.

  1. The Executors are failing to perform their task of executing the Will

The role of the executor of a Will is extremely important as they will be responsible for fairly administering the estate. Disputes often arise between executors who are also beneficiaries under the Will. If an executor is acting inappropriately, it may be possible for an application to be made at the Court to remove and replace the executor.

Suggestion: Think carefully about who you appoint as executors of your Will. Is that individual trustworthy, responsible and likely to cooperate with other executors or beneficiaries? You could also consider appointing a professional or a solicitor to be the executor of your Will, to avoid disputes among beneficiaries and to ensure the process is taken care of appropriately.

Please do not hesitate to contact our team if you have a Will, require advice regarding the drafting of a Will, if you are an executor, if you are a beneficiary or an interested party who would like advice regarding a potential dispute about a Will. We currently offer free 30-minute consultations where you can discuss and one of our Solicitors can answer any queries you may have.

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Blogs

LASTING POWER OF ATTORNEY

An important part of lifetime planning is the Lasting Power of Attorney. A Lasting Power of Attorney (LPA) is a legal document that gives one or more persons the power to act on your behalf as your attorney to look after your property and financial affairs and if necessary, your health and welfare. Having a Lasting Power of Attorney has become increasingly more common in England and Wales.

Just consider how much worse your situation would be if you had dementia or Alzheimer’s. These medical conditions could result in you having difficulties making any decisions and you will need help managing your finances.

A Lasting Power of Attorney must be made whilst you still have mental capacity. You will be able to appoint a relative or friend that you trust to look after your affairs if you lose capacity. By putting a Lasting Power of Attorney in place, you do not suddenly give up control of your own finances. You can choose when your attorneys can make decisions for you. This can be before or only when you lose mental capacity. You may have full mental capacity but be disabled in other ways leaving you housebound and unable to visit the bank. Your attorneys will only ever be able to make a choice for you if you are unable to make a decision at the time it needs to be made.

There is also a Health and Welfare Lasting Power of Attorney. This type of LPA is harder to obtain and is used in circumstances where attorneys are required to make decisions about day to day healthcare and medical treatments as well as dealing with any health care workers and social care workers. A Health and Welfare LPA can only be used after a person loses capacity and not before.

Unless you create a Lasting Power of Attorney while you have mental capacity, your loved ones will have to apply through the Court to become a Deputy. This process takes longer and can be more expensive. You should act early before you lose capacity. Irrespective of your current health, you should still consider a Lasting Power of Attorney. None of us know what is around the corner. Severe medical conditions and accidents do not discriminate and anyone over 18 years can set up a Lasting Power of Attorney. Anyone can have an accident which may result in an individual having severe concussion, be in a coma, have a stroke or brain injury leaving one with severe mental problems and unable to make decisions.

Mental Capacity

Mental capacity is the ability of an individual to make decisions. Some people may be able to make decisions some of the time but not all of the time because of medical conditions such as bipolar disorder, depression or schizophrenia to name a few. This does not necessarily mean that an individual lacks capacity all of the time; only when they are extremely unwell.

The Mental Capacity Act 2005 defines a person as being unable to make decisions if:-

  • they cannot understand information given to them to make a relevant decision;
  • retain information long enough to make decisions;
  • be able to use that information and communicate a decision.

During the process of making an LPA or Deputyship a certificate provider will be asked to complete a section of the application form stating whether or not they believe you are capable of making decisions. The certificate provider will usually be a doctor, solicitor or social worker.

What To Do Now

This will depend upon your situation.

If you still have mental capacity, this is the best time to act. Call or email Meaby & Co. Solicitors on 020 7703 5034 or mwaters@meaby.co.uk and our professional, friendly team of lawyers will assist you to create and apply for your Lasting Power of Attorney. Once we make the application on your behalf, it will take approximately 10-12 weeks to register. As soon as the Lasting Power of Attorney is registered it will be effective and your attorneys can, if required to do so start making decisions straight away or when you specify.

If the person has already lost capacity, Meaby & Co. Solicitors can assist you to apply for a Deputyship so that you can become a deputy of the Court of Protection to make decisions on their behalf.

A Lasting Power of Attorney is an extremely powerful legal document and we at Meaby & Co. Solicitors advise individuals to instruct one of our Solicitors to help you through the process. It is vital that you fully understand what the forms mean.

There is a misconception that a spouse or adult child will be able to manage your affairs should you become mentally incapacitated. As mentioned above, a Lasting Power of Attorney can only be registered while you have mental capacity, once you have lost capacity it is too late.

Act now, pick up the phone or email Meaby & Co. Solicitor on 020 7703 5034 or email: mwaters@meaby.co.uk to prevent a lengthy and complicated process for your loved ones at what will already be a difficult time.

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I have been appointed as executor. What do I do?

  • What is my role?

You have a legal responsibility to sort out the estate of someone who has died. You will have to collect in all the assets, pay off all the debts and liabilities and then distribute the estate as set out in the Will.

Being an executor can be time consuming and you will be responsible for making some important decisions. It is helpful if you can be organised from the start and keep good records.

  • Register the death and organise the funeral

These are usually the first tasks to be undertaken in your role as executor. The funeral can be paid for from the deceased’s own assets if sufficient.

You will need the death certificate to produce to the asset holders so that they will provide you with the information you need for the probate application.

  • Identify the assets, debts and liabilities

Gather up as much paperwork as you can from the deceased. Part of the role of the executor is to establish what assets and liabilities are held by the deceased as at their date of death. It is better to write to too many asset and liability holders than too few.

People often have dormant or long forgotten accounts or insurance policies that have been overlooked. What about internet based accounts? Is there any paperwork for anyone to be able to identify those assets. We often assist clients with carrying out searches for these types of assets so that they can be identified and paid over to the estate.

Some assets such as antiques, jewellery, cars etc may need to be professionally valued. These can be overlooked by executors but should be included in the estate.

The executor should also ensure that assets remain secure until they can be sold  or distributed. Should the locks on a property be changed (yes, if the executor is not sure who has keys); Should valuable items be removed and placed in safe storage? Yes, ideally. If the property is unoccupied it is  probably not a good idea to leave valuable jewellery in situ.

What about debts and liabilities? These can be utilities, mortgages, loans or credit cards. They will also have to ensure that the funeral is paid.

  • Complete inheritance tax forms and apply for probate

Some estates will be subject to inheritance tax and the executors will need to ensure that the inheritance tax is paid before applying for probate. Once you have settled the inheritance tax, you can then apply for probate.

You will then receive a grant of probate and this can be given to the various asset holders in order to close accounts and sell assets.

  • Check tax position

Is the deceased’s income tax position settled up to their date of death? What about  income tax due during the administration period? Some assets when sold as part of the administration of the estate will attract capital gains tax and this should be paid from the deceased’s assets before distribution.

  • Prepare the estate accounts

This helps the beneficiaries and the executor ensure that everything has been accounted for

  • Distribute the estate

The executors distribute the estate in accordance with the Will. Sometimes they may also have to continue to act as trustees, for example if a beneficiary is under 18 years they may be required to look after that money until the beneficiary reaches the appropriate age.

If you need assistance or advice if you are appointed as an executor then please do not hesitate to contact Esther Janalli-Brown on 01306 884432 or email ejbrown@meaby.co.uk for more information.

 

 

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