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Client died December 2014

Client died December 2014

Didn't find your answer?

I would appreciate your help on following situation:

Client died December 2014, Solicitor sent me info re savings income  in February 2015.

I then had to sort out business records which was difficult but I have now got all info for 2015 tax return.

Do I prepare return in clients name or exec. name ?

Can I file on line ?

Thanks very much for any help.

Replies (15)

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By Tim Vane
26th Jan 2016 11:15

Have you been appointed to do the return and do you have an engagement letter in place?

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By Phil Yaboots
26th Jan 2016 11:37

Have you been appointed by the executor? Does your client appointment not lapse on client's death? EDIT Tim Vine hit the post button before me!

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By Paul D Utherone
26th Jan 2016 11:17

Has probate been granted?

Until then no one can submit as no one is authorised to sign off as executor.

You can file online and wioll prepare a return for the period to date of death.

The return is for the exors of late client.

The exors will need to re authorise you as agent. The client should have disappeared off your agent list once HMRC knew of the death.

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By Andp
26th Jan 2016 12:40

tax

Paul D Utherone wrote:

Until then no one can submit as no one is authorised to sign off as executor.

We all know probate MAY take years to be granted. Does that mean SA, IHT and trust and estate returns are not filed in the meantime?- No it does not.

You need a signed letter of engagement for each type of tax return. As others have said you prepare an SA100 with supplementary pages as applicable for 6th April 2014 to date of death ,in the deceased name with deceased UTR- executors sign off and state their capacity.

Also the executors have a duty to inform HMRC of any estate income post death , obtain a trust and estate UTR and start preparing and submitting said tax returns.

If applicable -Also the executors have a duty to pay inheritance tax within 6 months post death and submit IHT 205 or IHT 400 within 12 months post death

You need to educate the executors of their tax obligations relating to the deceased, establish with the lawyer which party is preparing each of the myriad of tax returns.

Good luck

 

 

 

 

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By Paul D Utherone
26th Jan 2016 13:54

Or possibly for SA it does?

Andp wrote:

Paul D Utherone wrote:

Until then no one can submit as no one is authorised to sign off as executor.

We all know probate MAY take years to be granted. Does that mean SA, IHT and trust and estate returns are not filed in the meantime?- No it does not.

SA you prepare ready for probate to be granted and then submit within 30 days of grant. No penalty as you have submitted as soon as is possible after the grant to administer the estate is issued
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By garforth
26th Jan 2016 11:59

Thanks

Yes I have letter of engagement and client is off list . Also have new reference number just confused as to how to file (paper or online)and in what name. (exec or clients name)

thanks for help.

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By Andy Reeves
29th Jan 2016 11:46

UTR should not change

The deceased taxpayer's reference should not change. After all, they were his tax affairs, and not the executor's. The executor will sign the return though and, as already pointed out, will also need to sign a 64-8 and engagement letters for each service. Remember to obtain ID, etc under the Money Laundering regulations for the executor, the same as you would do for any other new client.

If you have a new UTR, that may be for the estate, i.e. post-death income.

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By garforth
26th Jan 2016 12:54

Andp
Thanks a lot that is great.Much appreciated 

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By Andp
26th Jan 2016 13:04

most welcome

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By adamwalker1
29th Jan 2016 11:33

Having just done this for my father in law..

 

Any 64-8's you have end once the client has passed. The revenue wills end a paper return and you can fill this is as a personal representative for tax. You must notify HMRC that you are acting in this capacity.

 

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By Lawskills
29th Jan 2016 12:32

Bereavement service

No-one has mentioned the bereavement service.

HMRC has a specialist bereavement team at HMRC PAYE & Self-Assessment PO Box 4000 Cardiff CF14 8HR.

Once HMRC are notified of the deceased's death they check to see if you have been appointed as the agent by the PRs after death. Then with self-assessment customers they will send a standard letter (P1003 or P1004) and any outstanding personal tax returns to the PRs or their appointed agent within approximately 8 weeks of death.

 

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By Nigel Wulcko
29th Jan 2016 12:41

Recent experience

I know that the response from adamwalker1 is correct as I am dealing with my late mother's estate.

There is no executor at this stage, as the executor(s) are appointed by the Grant of Probate, so you will file the SA returns as the personal representative for tax.  You do not have to wait for Probate to be granted.

 

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By Lawskills
29th Jan 2016 12:47

Executors are appointed by Will and their authority stems from it and operates from the date of death. The Grant of Probate merely confirms this. If the named Executors do not prove the Will then the Grant will have to be applied for by a beneficiary or by order of the Judge - and it will then be a Grant of Letters of Administration (with Will annexed). In that circumstance  the persons obtaining the Grant would have no authority until the Grant has been issued.

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By Nigel Wulcko
29th Jan 2016 13:09

HMRC not too fussy?

With regard to my mother's SA returns, HMRC were happy for me to sign them off merely on my telling them that I was one of the joint-executors named in the will.  Although I suppose in this case, I was also (one of) the next-of-kin.

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By The Minion
29th Jan 2016 13:14

You must get a formal appointment

we were told by the solicitor dealing with the estate that the executor had agreed that our recently deceased clients tax return to date of death should be done by us.

 

Being the trusting souls that we are we took it at face value and sent out engagement letters along with the completed return (the executor had previously sent everything in to us). Only to find that "lawman spoke with forked tongue" because the email that contained the instruction was not legally a legally enforceable instruction...

 

As always every day is a skill day...:-(

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