Overview
Troika is used to administer an estate for a deceased individual, and assist with the production of the HMRC IHT probate forms. The probate framework can also be used as a tool to assist in IHT planning, if required.
Setting up the Initial Client, as an Estate
To add a new estate, from the Wealth Management module, select the Client tab and the menu option Estates - Add.
Enter the date of death for the individual as the date of the initial valuation being loaded.
Once the estate is added, still within the Client tab but the menu option Estate Details - Edit, enter any other relevant details which may impact on the IHT planning, e.g. beneficiaries and family members.
Under the Inheritance Tax Account tab also ensure the relevant IHT forms are selected.
Once complete, click Close to exit and save.
Within the Client tab and the menu option Load Data, now enter all assets and liabilities, with values as at the initial valuation date.
As a small time saver, for any investment records being added, add the total value of the investment, with the Units as 1.
Reviewing the Position
At any point, reports can be run within Estate Details - Edit, and the Reports tab. For example, to view all assets and liabilities sitting within the probate framework run the 'Assets and Liabilities at Date of Death' report.
In addition, IHT forms can be run from the IHT & Other Tax Forms menu option.
The Next Valuation
Firstly, amend the date of death for your estate to match the date of your next valuation. To do this, from the Wealth Management module, select the Client tab and the menu option Estate Details - Edit, edit the Date of Death field. You will see the following warning:
Changing the date of death requires changes to all date of death accounting records; please confirm you want to go ahead with this change. Any administration period transactions already entered, should be reviewed and adjusted where required.
Click OK to continue.
Once amended, proceed to edit any other relevant details here which may impact on the IHT planning, e.g. beneficiaries and family members.
Once complete, click Close to save/exit.
To amend/delete any assets and liabilities required, since the previous valuation, access the Client tab and the menu option Load Data again. Amend the existing values to the new values, as at the new valuation date, by double clicking on the item's value.
If unsure how to edit/delete an entry, the following article may assist:
How to edit/delete an asset, liability, bank or investment entry
Amending the Date of Death date within Estate Details - Edit will automatically amend the DOD period seen within Load Data, and the transaction date against those DOD transactions.
At any time, generate the IHT form under the IHT & Other Tax Forms menu option and review the outcome. This will provide the opportunity of looking at the impact of these changes in investment holdings, other assets and liabilities on the potential IHT bill.