Accounting for Estates - The Nuts & Bolts for Probate Professionals

Introduction

Are you unsure about angles of preparing the accounts of a deceased estate?

Are you frustrated by the lack of technical guidance?

This new virtual classroom seminar will look at the basic requirements and layout and will provide you with a broad understanding of accounting for estates in the context of the probate rules from small estates to large estates with a working business (e.g. a farm).

You will learn who is entitled to receive accounts and how to prepare a set of accounts from the core accounting records that are ‘real time’, and other information (if any) provided by your clients and what information must be asked for at a very early stage from the executor.

The understanding of the inheritance tax reliefs and impact of the October 2024 Budget will feature as well as the restrictions on distribution and the associated recording in the accounts.

What You Will Learn

This live and interactive course will cover the following:

• The importance of the accountant’s approval certificate explaining the scope of the work and information supplied
• The starting point of the probate valuation together with the collection of assets and liabilities
• How to treat XD dividends
• The distinction between capital and income
• Estate cash account - and cashflow requirements, especially around IHT liabilities
• Interpretation of the legal occupation of property - impact on accounts
• Responsibilities of executors and accountants
• The letter of engagement and instruction understanding
• The starting point of the probate valuation and pressures on those values
• Users of the accounts
• Estate double entry and interaction of improving estate software
• The main statements and how they interact with the following:
• Estate at death account
• Estate capital account
• Estate income account
• Investment schedule, sales and income
• Property schedule, sales and income (matched to expenses)
• Distribution statement for each beneficiary
• Balance sheet date and preparation
• Estate cash account and solicitor’s estate account
• The distinction between capital and income
• Sale of estate assets - how to treat gains (and losses) on assets and investments from probate valuations - interaction with capital gains tax
• Impact of Budget 30 October 2024
• Chattels reconciliation
• The impact of the living business
• Inheritance tax calculation and disclosure in the estate accounts
• Importance of protecting IHT reliefs

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.