WHAT HAPPENS WHEN SOMEONE DIES ?
When someone dies it can be a very stressful and confusing time. Normally, relatives or close friends of the deceased will deal with the immediate problems, such as arranging the funeral and obtaining the Death Certificate. If the death was unexpected, there can be delays in obtaining a Death Certificate and organising a funeral. In most cases, however, the matter is fairly straightforward. Your solicitor can help you contact Undertakers and arrange for the Death Certificate to be issued by the Registrar of Births, Deaths and Marriages.
What is the estate?
Someone will have to deal with the "estate", that is, the money and other assets of the person who has died. Your solicitor will be able to help you with this.
What happens if there is a Will?
The Will usually appoints at least two executors, one of whom is often the family solicitor, who will be responsible for dealing with any assets of the estate, all in accordance with the written instructions of the deceased contained in the will. Executors should take advice from a solicitor about the steps which should be taken.
What happens if there is no Will
If there is no Will, it may be necessary to apply to the Sheriff Court to appoint executors. These will usually be close relatives of the person who died. A solicitor will have to be instructed to prepare the necessary documentation for the Court to appoint the executors. The executors will then have to deal with the estate in accordance with the rules of "Intestate Succession". These include special rules for dividing the estate among the surviving relatives.
The executors have to prepare an Inventory of all the assets in the estate. This will usually be done by a solicitor. The Inventory should be signed by one of the executors in front of a solicitor. It will then be lodged in court and the court will issue "Confirmation". This document represents the right and title of the executors to deal with the assets of the estate.
What goes into the inventory?
All of the assets of the estate should appear in the Inventory; for example, Bank and Building Society accounts, National Savings or Post Office accounts, a house, or a half share in a house, any valuable jewellery or paintings, any shares, a motor car and even, sometimes, the furniture. Sometimes these items have to be valued as Inheritance Tax may have to be paid on the estate.
What happens next?
The assets of the estate are "uplifted": that is to say, Building Society and Bank Accounts are closed, National Savings are cashed in, shares are sold, etc. If there is a Will, then the proceeds of the estate are divided among the parties entitled to receive the money in terms of the Will. If there is no Will, then the proceeds of the estate are divided among those relatives who are entitled to receive a share of the estate under the rules of Intestate Succession.
How much will all this cost?
It may be difficult for your solicitor to advise you how much the winding up of the estate might cost. This is simply because it depends on how much work is involved and to a certain extent the size of the estate.
However, your solicitor should be able to tell you his hourly rate, how often he will bill the estate and what arrangements he has for assessing the fee e.g sending his file to independent Law Accountants or the Auditor of Court.
You may be able to do some of the work yourself, but, to make sure the matter is handled properly, SEE YOUR SOLICITOR FIRST.