Administration of an estate of a loved one that has passed away is a very delicate matter that needs to be dealt with high proficiency and discretion. This guide outlines the procedural steps for managing the estate of an individual who passed away intestate (without a will).
- 1. Appointment of an Administrator
- All rightful and legal heirs must agree on and consent to the appointment of an Administrator.
- Following the heirs' consent, an application needs to be filed to Court to obtain "letters of administration," which will officially authorize the administrator to manage the estate of the deceased.
- Asset Identification and Inventory
- The Administrator should conduct comprehensive searches to identify all assets owned by the deceased at the time of death as well as any debts of the deceased.
- An Inventory of Assets must be filed to the court, accompanied by an Affidavit sworn by the Administrator, affirming that all known assets have been disclosed.
- Notification to Tax Authorities
- The Administrator must notify the Inland Revenue Department of the administration procedure.
- The department will then open an investigation to determine if the deceased had any outstanding tax liabilities which need to be paid in order for the administration to proceed.
- Tax Clearance
For Cypriot Tax Residents: The Inland Revenue Department will request the deceased's Income Tax Declarations for the past three to six years if they were not filed before death.
- For Non-Cypriot Tax Residents: The department will require a Certificate of Fiscal Residence from the relevant authority in the deceased's country of residence, confirming their tax residency status for the past three to six years.
- Distribution of the Estate
- Once tax clearances are obtained, the Administrator can distribute the estate's assets to the rightful beneficiaries.
The distribution must align with the legal shares entitled to each heir.
- Final Accounts and Closure
- The Administrator must file Final Accounts to the court, detailing all actions taken during the administration process and how the estate of the deceased has been distributed.
- The Final Accounts should include signed declarations from all beneficiaries confirming they have received their respective shares of the estate.
- Once the Court approves the Final Accounts, then the Administration is complete and the Administrator is relieved from his duties.
In conclusion, administering an intestate estate involves several critical steps, including the appointment of an Administrator, thorough asset identification, tax clearance, and the final distribution of assets. By adhering to these procedures, the Administrator ensures that the estate is managed lawfully and that all heirs receive their due inheritance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.