When appointed by an executor to assist in the administration of a deceased estate we contact the banks, companies and insurance companies with whom the deceased held accounts, shares or policies to confirm the holding and obtain details of the requirements to deal with the respective assets.
We produce probate to the assets holders and complete any other documentation required to either liquidate the asset so that its proceeds can be paid into our Trust account and distributed to the beneficiaries in accordance with the terms of the will, or sometimes, transfer the asset, such as shares or real estate, to the beneficiary.
In relation to assets such as shares being transferred which are subject to capital gains tax, the beneficiary effectively inherits the deceased's position in relation to capital gains tax, ie. the deceased's costs base is adopted, and the liability to pay capital gains tax is postponed until the beneficiary later sells the shares and makes the capital gain. If shares or real estate are sold on behalf of the estate and the proceeds distributed there may be capital gains tax payable by the estate.
We cooperate with the deceased's accountant in relation to the preparation of final income tax returns for the deceased and estate returns if they are required due to the estate earning income between the death of the deceased and the estate being wound up. Advice may also be sought from the deceased's accountants in relation to capital gains tax issues of selling or liquidating the asset or transferring it to the beneficiary.
When all assets are dealt with and liabilities and accounts owed by the deceased or the estate are paid, we prepare administration statements in a clear simple form which are sent to the executor for approval prior to distribution to the beneficiaries named in the Will. If instructed to do so, we also obtain releases from beneficiaries whereby they acknowledge that they agree with the administration statement and won't make any future claims on the executor in relation to the administration of the estate.