What happens if somebody self employed dies? their tax return? & is it different for them writing a will? uk?

[bluecheese544]

what happens when somebody dies who's self employed? does this not cause problems for whomever is left behind and has to fill in their tax return... personal experiences, anybody?

and is it different writing a will if you're self employed?

thank you

When anybody dies, the executors/administrators are responsible for finalising the deceased's income tax affairs to the date of death and HMRC will send out a specific form for this. I have only ever dealt with self employed persons' estates where they have employed an accountant: in those circumstances, the accountant will make up the final return for you to send off. If the person didn't have an accountant, you would be best to instruct one really, unless you feel very confident about doing the work yourself.

The advice given to a particular individual about their Will depends on a number of things, one of those could be their status as self-employed. It's too broad a question to answer really - you need to take personal advice on making a Will so that you get proper advice about how to make sure things are settled in the way that reflects your wishes and in the most tax efficient manner.

Is it not difficult with awareness of what bills are still to come in for the deceased etcetera?

i suspect (?) you need to use a solicitor to write your will if you're self-employed... rather than other cheaper methods?

I would never recommend using anyone other than a suitably qualified solicitor to write a will. Home-made wills are a total nightmare - the last estate I administered where there was a home made will required a rectification application to sort out some issues, at a cost of £6k to the estate. If he had paid £100 for a properly drafted will, it would have been much cheaper and easier.

Regarding unpaid bills, you can allow for a reasonable period for people to come forward, or contact known suppliers to request final accounts etc - then once you have got all the potential creditors that you can find out about, you would be best advised to place Trustee Act notices (basically adverts notifying of the death and requesting unknown creditors to come forward - then if they don't within the set time period, their claim on the estate is barred). Hope that makes sense. Typing quickly whilst simultaneously eating a pot noodle .

emsyj

what do you think of companies like this:

www.glosslegal.co.uk/

I don't have any experience of will writing companies tbh - there is a user on here called mumblechum who writes wills and she gets great reviews from posters. If you look in the Classifieds on here she has a paid ad.

Wills and conveyancing are (so I believe) the most fertile areas for negligence claims - so I would choose your will writer carefully, as it will cost more in the long run if you don't get it done properly. The cost will depend on how complex your affairs are.

I agree with the recommendation to use a suitably qualified lawyer. My aunt died Christmas Eve 2010 and the home made will hadn't been worded correctly. We needed verification from the witnesses but both of them were elderly and one wasn't capable of managing their own affairs let alone anyone else's.

Personally I would pay a little extra for individual attention of a lawyer rather than an online company who basically rely on turnover to keep their costs down.

thanks for the plug, Emsyj.

The ad is over on Classifieds, titled 5* Will Writing Service Recommended by Mumsnetters.

To answer your question, OP, it depends on whether you are a sole trader or have a limited company,as to the correct wording.

even!

i don't have a limited company

i'm assuming it's better to have a will than die without one...

Yes, it's better to have a will - in general, it is cheaper to administer an estate where there is a Will. There is more work involved in intestacy, plus there is more scope for family arguments in my experience. Also, bear in mind that the results of intestacy may not be what you want, or what you would expect - for example, many people assume that if you're married, your spouse gets everything. This is not usually true (depends who else survives, but rare for the spouse to be entitled to everything on intestacy).

Will or not, you still need to inform HMRC. Website advises this must be done by phone and gives the number. 127 minutes later you will get through to some who says fine, download form R657245672 and send it in ... Frustrated? Hmm.

what i've read thus far about online wills hasn't been too good...

i've checked the intestacy rules and it would follow how i would want it and i don't think there would be many/any family arguments with my estate (fingers crossed) - but i wouldn't want to leave those facing lots of really expensive bills (if getting a will is relatively cheap)

If you go to a well established local firm, they won't charge you a fortune to do a basic will. If you have complex personal affairs that warrant a long time being spent, it will cost more but will be money well spent and will save a lot of hassle and expense for your family/friends later on.

If you visit www.step.org you can search for a local member of the Society of Trust and Estate Practitioners. There are now exams to pass before you can join as a member (back in the old days you could just sign up, but it's quite strict now re: qualifications) so you should be able to find someone competent that way.

thanks

i've read the citizens advice bureau or law society can be helpful with choosing a solicitor too...

i would imagine it'd be relatively simple

The Law Society can tell you if a person is a solicitor and what their area of practice is - I think they will give you a list of solicitors in your area who do wills (think this is due to pass to the Solicitors Regulation Authority but the changeover seems very slow) - that's not the same as a recommendation.

I've never worked for the CAB although I did volunteer at a legal advice clinic held at a CAB and my understanding is that they hold a list of local firms who do wills and probate work - again, this is not a recommendation, just a list of existing firms who offer those services. We were forbidden to give clients at the legal advice clinic advice on wills and probate unless we had specific qualifications (for insurance purposes - as I said previously, it's a very fertile area for claims and not something that you can dip in and out of easily without making mistakes).

Thank you for asking, I've wondered this as I continue to remain quite anxious for some very dear friends of ours who (as a couple) as well as having two children and assets above the inheritance tax level own a small-medium sized company with several employees but have no wills. mumblechum1 did a fab job of my will and have recommended her to them but they still feel it would be bad luck to write a will!

don't think i have as much as stake as oddboots friends. i imagine many people go by recommendation, but what if you've just moved somewhere - i guess this can be a problem for many people.

Oddboots, thanks for recommending me to your friends (who have an odd attitude but one I've come across before; some people equate writing their will with a death warrant!).

OP, you can find a local will writer on the Institute of Professional Will Writers website. To be a member, we have to pass exams, hold professional indemnity insurance, public liability insurance and take regular training updates and are subject to spot checks. We're regulated by the Office of Fair Trading. Have a look on the website to find a member near you.

mumblechum1 - are you in 'step' as well?

No, because I qualified through a different route, through the Institute of Legal Executives, but all my wills are written in accordance with the STEP regulations.