Accounts, tax returns and R185s
Once your grant has been approved by HMRC, you can use it to manage the estate and distribute the remainder of the assets after bills are paid. We can deal with or assist with selling the assets or transferring them to the legatees, paying the liabilities and advising on distributions.
We can also consider the implications where the estate includes overseas assets or if it’s a cross border estate, with international probate considerations. Our in-house US tax specialists are able to assist where relevant and we have contacts in most jurisdictions who we work closely with.
We’ll suggest how to minimise the administration burden and if tax returns can be avoided. We can also prepare the forms R185 required by the legatees for their personal income tax reporting. In most cases, detailed accounts won’t be required and we can prepare statements showing how the funds were realised and distributed. However, for substantial or contentious estates, we'll prepare detailed accounts, including for court proceedings if required.
If there is a trust created under the will, we can advise on the implications of keeping the trust. Our specialists can support with the registration of the trust and assist the trustees with all compliance matters. We can also help you to understand the options when it comes to managing, varying or terminating the trust.
Minimising tax liabilities
If we haven't already had the opportunity to advise on the wills and IHT planning prior to death, we’ll tell you what can be done to rearrange the estate to minimise tax liabilities. We can advise on deeds of variation or obtaining legal advice for claims under the Inheritance Act.
There are income tax and capital gains tax mitigation opportunities during the estate administration period too, such as timing distributions or transfers of assets prior to sale to make use of any losses or legatees non-UK tax status.