We have had a number of questions recently about how the recession affects estate planning and Probate. The most dramatic impact is the swift fall in asset values, especially property and shares, between the date of death and the time that the Personal Representatives are able to take formal title.

The rules in this matter are quite straightforward - for the purposes of establishing the size of an estate for Probate purposes (and of course for tax purposes) those individuals who are administering the estate (the Personal Representatives) must use the value of the assets at the date of the death. However the assets cannot be realized until the Grant has been received and in the current market these values can fall significantly.

If you are a Personal Representative or a Beneficiary of an estate, you should consider carefully a number of matters.

1. Is it really necessary to sell assets immediately? Many people do not realise that the actual asset can be transferred to the beneficiaries and that in some cases there are tax advantages to be gained through this route.

2. If assets have to be sold to pay Inheritance Tax there are ways to claim tax relief for any losses arising. The rules are more complex for losses arising on shares and securities as only a net loss on ALL transactions in the period can be claimed and any claim must be made within 1 year.

3. Speed is of the essence in obtaining the Grant and any delay between the date of a death and the receipt of a Grant can cost money. With our reputation for speed, you can be confident Kings Court will protect you in a volatile markets.