Intestacy

Question 1

Taxation of deceased estate

Answer 1

Any interest / dividend receive by estate is taxable
No personal allowance/no psa or dividend allowance
Interest charged at 20%| dividend 7.5%
If death occurred after 6/4/18 deceased isa can be designated as continuing isa for tax status
CGT charged at 20%|28% but can use deceased exemption for 2 years after death

Question 2

Probate process

Answer 2

Deceased left a Will, executors appointed

Executors identity and value deceased assets and liabilities

Submit an IHT return to HMRC and pay any liability

Applie for grant of probate - probate registry office

Executors take control of the assets and pay off any debts

Prepare accounts and pay residue of estate to beneficiaries

Question 3

Mental capacity test

Answer 3

Can individual understand the information

Can individual use that information

Can an individual retain the information to make a decision

If one test failed the individual does not have mental capacity to make decision