A new technical note has been published by HMRC outlining the responsibilities of estate executors for the upcoming inheritance tax changes.
Starting from next April, pensions are set to fall under the scope of inheritance tax. The note makes it clear that estate executors named in the Will of the deceased person will be classified as their ‘personal representative’. This will also apply to professionals who are appointed to handle the estate administration, such as Wills and Probate solicitors in North Wales.
The technical note offers some guidance on what they will be expected to do when the changes come into effect. It details what information they will be required to provide, how they should assess pension tax liability, and the right way to complete calculations and accounts.
It also clarifies that all responsibilities as executors will begin from the death date. The only situation where that will not apply is if a personal representative has to be appointed from outside. In those circumstances, the person will not assume the role until a Grant of Probate has been issued.
Emily Dean works for STEP as its government affairs head and technical counsel. She told Today’s Wills and Probate:
“We’re pleased that HMRC has provided further clarification on the new inheritance tax rules for pensions. The additional detail helps answer some of the questions facing executors and gives more clarity on how the new process will work in practice.”
At Bennett Smith Solicitors, estate Probate is one of our key areas of expertise. Call our solicitors in Bangor today for a quote.
