Inheritance Tax investigations are on the rise – is DIY estate administration worth the risk?
A recent article from The Telegraph’s Alex Marsh (Inheritance tax investigations hit six-year high – here’s what to watch out for) highlighted a significant increase in HMRC inheritance tax investigations, with formal enquiries reaching their highest level in six years. The figures serve as a timely reminder that administering an estate is about much more than completing paperwork – it requires a thorough understanding of complex legal and tax rules that continue to evolve.
With online guidance and probate services becoming more accessible, many executors are understandably considering whether they can administer an estate themselves. For straightforward estates, this may be appropriate. However, what appears to be a simple estate can often involve legal and tax complexities that are not immediately obvious.
Estate administration isn't always as simple as it appears
Every estate is unique. Factors such as lifetime gifts, jointly owned assets, trusts, business interests, agricultural property, overseas assets, pensions, and property valuations can all have implications for inheritance tax and the administration process.
An innocent mistake or omission can lead to:
Delays in obtaining probate
Unexpected tax liabilities
Requests for further information from HMRC
Formal inheritance tax enquiries
Additional stress during what is already a difficult time for families
HMRC has increased its focus on ensuring inheritance tax returns are accurate, with investigators able to request valuations, financial records, correspondence and supporting evidence where they believe further clarification is needed.
Taking advice doesn't mean handing everything over
Many people assume that involving a solicitor means committing to full estate administration. In reality, legal advice can be as much or as little as you need.
For some executors, a fixed-fee advice session provides reassurance that they are approaching matters correctly before progressing with the administration themselves. For others, professional support throughout the process offers peace of mind that everything is being dealt with accurately and in accordance with the latest legal requirements.
The right advice at the outset can often prevent costly issues further down the line.
How Gudgeons Prentice can help
At Gudgeons Prentice, we understand that every family and every estate is different.
Whether you would like us to manage the entire estate administration process on your behalf or simply provide clear, practical advice to help you understand your responsibilities as an executor, we are here to help.
We offer:
Comprehensive estate administration services
Fixed-fee advice appointments
Clear guidance tailored to your circumstances
Practical support from experienced legal professionals
If you're unsure, ask
Acting as an executor carries significant legal responsibilities. If you are uncertain about any aspect of administering an estate, seeking professional advice early can provide clarity, reduce stress and help avoid potentially costly mistakes.
If you are administering an estate or have recently been appointed as an executor, contact Gudgeons Prentice to discuss how we can support you, whether that's through a one-off advice session or by managing the process on your behalf.