Guide to locating assets when dealing with an estate 

Settling an estate in Scotland can be a complex and time-consuming process, especially when it comes to identifying all of the deceased’s assets. Without a full inventory, executors may find it challenging to locate and manage financial accounts, property, personal belongings, and liabilities.

Check personal records and documents

The first step in identifying assets is reviewing the deceased’s personal records. This includes checking their Will, which should outline beneficiaries and may identify key assets. If the deceased had a letter of wishes, it might provide further guidance. Reviewing bank statements, pension documents, and tax returns can offer insights into financial accounts, investments, and income sources such as rental properties or dividends. Life insurance policies and safe deposit boxes may also hold valuable information. Executors should also check for any inheritance tax (IHT) records or liabilities with HM Revenue & Customs (HMRC).

Examine digital and online accounts

As more financial management takes place online, digital assets are an important consideration. Executors should check email accounts for notifications regarding bank accounts, pensions, and digital investments. Some individuals maintain digital records of their assets, including passwords and logins, which could simplify the process. Reviewing cryptocurrency wallets, PayPal accounts, and online banking platforms can help uncover hidden assets. In some cases, social media accounts and cloud storage may contain valuable intellectual property or sentimental assets.

Investigate heritable property

Heritable property is often one of the most significant assets in an estate. Checking Land Registry records can confirm property ownership. Reviewing mortgage statements and rental agreements helps determine outstanding liabilities or income-generating properties. If the deceased owned property abroad, consulting international property records and legal professionals may be necessary. If a property is vacant, executors should arrange for security and insurance to prevent damage or fraud.

Locate vehicles and personal valuables

Vehicles, boats, and collectibles may have significant value. Checking DVLA records will confirm vehicle ownership, while reviewing insurance documents can highlight other assets such as jewellery, art, or antiques. Some high-value items may be stored in safe deposit boxes or storage facilities, so investigating these is advisable.

Identify pensions, savings, and investments

Pension schemes and savings accounts often form a large portion of an estate. The deceased may have had private or workplace pensions, and contacting pension providers is essential to determine entitlements. The Pension Tracing Service can help locate lost pensions. ISAs, premium bonds, stocks, and other investments should be identified by reviewing financial statements and consulting investment firms. National Savings & Investments (NS&I) records may also hold information about government-backed savings.

Locate business assets

If the deceased owned a business, their estate may include company shares, intellectual property, or business accounts. Reviewing Companies House records will reveal company ownership and directorships. Checking shareholder agreements, contracts, and insurance policies can provide further clarity on business-related assets.

Unclaimed assets

The King’s and Lord Treasurer’s Remembrancer (KLTR) deals with ownerless goods in Scotland and can sell land or buildings at market value, then the money goes to the Scottish Government. KLTR may transfer ownerless land or buildings using the Ownerless Property Transfer Scheme (OPTS).

Handling newly-discovered assets after Confirmation

If an asset is discovered after Confirmation has been granted, it must be dealt with in accordance with Scots law. Firstly, as the missed asset will not be on the grant of Confirmation and, depending on the requirements of the asset holder, you may need to apply to amend the Confirmation through an “eik”. This act will delay the estate administration and result in additional costs. Also the inclusion of additional assets will likely increase the inheritance tax due (if it is an IHT taxable estate) and if that additional tax is paid late, this could result in penalties and interest being charged by HMRC. If IHT has already been paid, the executor has a duty to report the new asset to HMRC, which may mean further tax payments. In some cases, low value assets can be distributed informally with the agreement of all beneficiaries, but for greater sums, legal advice should be sought.

Locating assets when dealing with an estate in Scotland requires a methodical approach and careful documentation. Executors must ensure all property, savings, investments, and debts are accounted for before finalising the estate administration process. Consulting a solicitor or financial adviser can provide guidance on complex cases, preventing legal complications and ensuring the estate is managed correctly.