Administering an estate is a significant legal responsibility that involves many legal, financial, and administrative tasks, especially if the estate is multi-jurisdictional with properties, shareholdings, and investments.
An individual must appoint a personal representative (also known as an executor and trustee) under the terms of their Will to administer their estate on their death. Often, an individual appoints a trust corporation as their personal representative, and below, we shall explore the benefits of doing so.
Understanding Estate Administration
Estate administration is the legal process by where a deceased individual’s estate is administered and distributed. The process involves validating the Will (if there is one), obtaining date of death valuations for the assets in the estate, calculating the inheritance tax due to HMRC, claiming any inheritance tax allowances to reduce the overall inheritance tax liability and arranging payment, discharging any liabilities, and legacies, and distributing the remaining assets to the beneficiaries at the appropriate stage of the process (dependent on any potential claims being brought against the estate). The estate administration process can be complex, and time-consuming, and there are specific legal duties that the personal representative must comply with to ensure that the estate has been administered properly.
What is a Trust Corporation?
A trust corporation is a separate legal entity (unlike an individual) which can act as a personal representative.
Benefits of Appointing a Trust Corporation
- Expertise and Experience: A Trust corporation has experience in managing and administering estates and navigating the estate administration process. For complex estates, which may involve multiple deaths or jurisdictions, sophisticated assets, or potential claims, a trust corporation’s expertise is crucial.
- Impartiality: Unlike a family member or friend, a trust corporation is impartial. This impartiality can help avoid any conflicts among beneficiaries and ensure that the estate is administrated fairly.
- Efficiency: Appointing a trust corporation can assist in expediting the estate administration process, reducing any unnecessary delays and costs.
- Consistency: Unlike an individual personal representative, who may become unwell, or die during the estate administration process, a trust corporation offers consistency and security.
- Professional Advisors: A trust corporation has a team of professional advisors who can assist and advise them during the estate administration process.
Brown Holliday & Clements Limited, Company number 06442571 (STCL)
STCL is a trust corporation owned by a number of the Partners of Brown Holliday & Clements. The Partners are each authorised to make decisions and sign documentation on behalf of STCL. If STCL is appointed to act, STCL (as a separate legal entity) would appoint Brown Holliday & Clements, and the matter would be allocated to the most appropriate specialist team for them to carry out the administration.
In practice, if STCL is appointed as a personal representative under the terms of a deceased’s Will, the Private Client team at Brown Holliday & Clements would deal with the estate administration, on immediate notification of death, and the estate administration process will progress without much input from the deceased’s family members at a difficult time.
STCL can also be appointed as a professional executor, trustee of trusts, attorney, or deputy for individuals for property and financial affairs only.
If you wish to speak with one of our experienced Solicitors about appointing Brown Holliday & Clements, then please do not hesitate to contact our Baker Street office on 02070344200, info@brownhollidayclements.com or info@brownhollidayclements.com
