Page 5 - A Guide to the Executry Process

INHERITANCE TAX GUIDE
AFTER A DEATH

any concern that there will be insufficient funds in the estate to repay the debts then
the executor should not proceed further without taking legal advice.

Stage 9 - Confirmation of the Executor.

Forms C1 and C5, which are court and tax forms, are prepared and submitted to the
appropriate Sheriff Court. If the Sheriff Clerk is satisfied with the documentation

then a document called the Grant of Confirmation is issued by the Court. This
confirms that the person who applied to be executor is entitled to hold that office and
to deal with the assets listed on the estate inventory. The Grant of Confirmation is

important as it shows third parties that the executor named in it is entitled to deal
lawfully with the deceased’s property. And it is really important point to note here

is that if there is any inheritance tax due to HM Revenue & Customs this must be
paid before Confirmation will be granted. The executor is also responsible for
ensuring that any outstanding income tax has been paid. If the executor fails to pay

the correct tax he or she is personally liable to the revenue for any shortfall – so we
strongly recommend legal advice be taken before this point is reached.

Stage 10 - Ingathering the Estate.

Armed with Confirmation the executor now “ingathers” the deceased’s assets. This

can be quite a long process, even in relatively modest sized estates. Most executors
prefer to instruct a solicitor to deal with this procedure.

Stage 11 - Distributing the Estate.

This can be a complex area. Assets may be realised and monies distributed or

property such as houses passed on to the beneficiaries. It all depends on the
circumstances. If there is a will the executors must make over the property as stated
in the will. But children have certain legal rights and they may claim part of the
estate no matter what the will says. A surviving spouse also has legal rights which
he or she can claim. Some surviving spouses and children do make such claims if it

is more advantageous to them than accepting the terms of the will. But they must
accept what they are left in the will or claim legal rights, they cannot do both. This
is a difficult area and legal guidance is strongly recommended.

If there is no will the estate must be paid out in accordance with rules laid down by
law. Again this is a complex area but the rules are designed to pay most of the estate
over to any surviving spouse or children, with succession opening up to other

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