Do you need Probate?
1. What is probate?
When someone dies, you’ll need to get the legal right to deal with their property, money and possessions (their ‘estate’).
You may be able to apply for a ‘grant of representation’ - known as ‘probate’.
You can apply yourself or use a solicitor or another person licensed to provide probate services.
Most cases follow the same basic process -
- 1 Check if there’s a will - this normally states who sorts out the estate. If there’s no will the next of kin can apply.
- 2Apply to get a ‘grant of representation’ - this gives you the legal right to access things like the person’s bank account.
- 3 Pay any Inheritance Tax that’s due.
- 4 Collect the estate’s assets, for example money from the sale of the person’s property.
- 5 Pay any debts, for example unpaid utilities bills.
- 6 Distribute the estate - this means giving any property, money or possessions to the people entitled to it (‘beneficiaries’).
2. What are the duties of an executor?
ADMINISTRATION
- Taking an inventory of the deceased’s possessions and debts
- Notifying and corresponding with all relevant organisations to gather together all the assets
- Paying all bills, debts and charges on the estate
- Distributing the legacies (whether specific items, cash sums or residue)
- Preparing and distributing estate accounts to interested parties
- Distributing the residue of the estate to the beneficiaries
- Following the testator’s wishes as closely as possible
- Collect date of death valuations for assets held by the deceased
LEGAL
- Applying for a grant of probate (in England & Wales, and Northern Ireland) or confirmation (in Scotland) to prove that the executors have the authority to deal with the deceased’s assets to those institutions and authorities that hold assets in the deceased’s name
- Identifying and dealing with any claims against the estate
TAX
- Completing inheritance tax returns and paying any inheritance tax due
- Completing any income and capital gains tax returns and paying any outstanding tax
3. Starting Out
Dealing with a loved one’s estate can be a difficult task as there are many factors to consider.
Have you thought about...
- Re-directing post?
- Selling the house?
- Re-homing any pets?
- Paying for the funeral?
- Any specialist legal work?
- Dealing with business assets?
- Having to attend court
- Having to take time off work
- Inheritance tax and income tax forms?
- Insurance for an unoccupied property?
- Dealing with shares and investments?
- Closing bank accounts and paying debts?
- House clearance and sale of high value belongings?
- How to distribute the estate correctly?
The whole process is called estate administration and part of the process may involve having to apply for a grant of representation. This is a legal document issued by the courts that proves you have the authority to administer the estate. It is often referred to as obtaining ‘probate’.
4. Obtaining Probate
Obtaining the grant involves completing the probate application, dealing with all tax elements of the estate and ensuring HMRC compliance.
VALUING ASSETS AND PAYING DEBTS
We contact all asset holders to obtain the necessary valuations to comply with HMRC requirements.
We will also contact any organisation or company to whom the deceased may have owed money and will obtain the balances outstanding.
ASSETS MAY INCLUDE:
- Property
- Bank accounts & ISAs
- Shares & investments
- Pensions/annuities
- Government benefits
DEBTS MAY INCLUDE:
- Credit cards
- Loans
- Mortgages/equity release
- Council tax
- Funeral bill
TAX WORK
Every estate requires an inheritance tax and income tax form to be submitted to HMRC, regardless of whether or not the estate is liable to inheritance tax. Our specialist tax team will liaise with HMRC and deal with tax related issues. This includes inheritance tax, transferable allowances, income tax, capital gains tax, self-assessment and certificates for interest accrued by beneficiaries.
LEGAL WORK
Our experienced legal team will undertake the necessary legal and trust work needed as part of the estate administration process.
5. Property
INSURANCE
It may not be top of your to-do list but making sure appropriate insurance arrangements are in place is a must.
This is a particularly important consideration for unoccupied properties as many insurers will not insure a vacant property, particularly if the property is not your main residence. As part of our service, we will arrange specialist property insurance.
If the property is damaged during the probate process an executor can be personally liable.
SELLING THE HOUSE?
You’re in good hands. We offer a comprehensive property marketing service to support you at all stages.
This service includes a free marketing report to help select recommended estate agents in the area and achieve the best price possible. All estate agents offer a no sale no fee service giving you complete flexibility and control.
We can arrange auctions if a quick sale is needed. We can also help with conveyancing and additional services such as maintenance, re-decoration, lock changes, clearance, cleaning, garden maintenance etc.
VALUATION & AUCTIONS
We can arrange valuations and sale at specialist auctions to ensure you get the best price possible for any high value belongings.
6. Intestacy
Intestacy - understand the effect of the intestacy rules on applying for probate and who benefits from the estate
WHAT IS INTESTACY AND DOES IT APPLY?
If someone dies without leaving a will, this is known as dying ‘intestate’. In cases like this, theestate is administered in accordance with the Administration of Estates Act 1925, which stipulates who may administer the estate and who may benefit from it. The Administration of Estates Act 1925 applies to anyone whose permanent home was in England or Wales at the time of their death.
If there is a will but it does not deal with the whole estate, then the remainder will be treated under the intestacy rules. This is known as ‘partial intestacy’. If there is a will but it has been held to be invalid, and if there is no valid and unrevoked earlier will, then the deceased will be considered to have died intestate.
If a will is irretrievably lost then the estate will be intestate. It is possible to obtain probate of a copy will, but this is a complicate process and legal advice should be sought.
INTESTACY RULES
The intestacy rules are the principles laid down by law which stipulate how the estate of a deceased is to be administered if there is no will. They contain provision about the order of succession of beneficiaries (which is also the order of priority of people entitled to be appointed administrators of the estate).
WHO BENEFITS UNDER INTESTACY?
Although the social landscape is changing, one of the more common situations is the presence of a spouse or civil partner and children (where the child is under 18 years old their share of the estate is held in trust until they reach 18 or marry). In a situation like this with no will, the estate is divided.
INTESTACY RULES FOR DEATHS OCCURRING
ON OR AFTER 1ST OCTOBER 2014
The spouse or civil partner will inherit:
- All the deceased’s personal possessions (known as chattels)
- The first £250,000 of the estate
- One half of the remaining estate
The children will inherit:
- Half of the remaining estate equally between them
- The spouse or civil partner inherits the entire estate if there are no children
INTESTACY RULES RELATING TO ALL
DEATHS
Regardless of the date of death, if there is no surviving spouse or civil partner, or the deceased was single, then the estate is distributed in the following order:
- Children: the children will inherit the entire estate, divided equally between them. If one or more of the children has died before the deceased, then their share is passed onto their children (ie the deceased’s grandchildren).
- Parents: if there are no children or grandchildren then the deceased’s parents will inherit the estate equally, or one parent will inherit all the estate if they are the only surviving parent. Step parents are not entitled to inherit the estate under the laws of intestacy.
The above are the most common examples but should there be no surviving spouse, children or parents, then it is distributed in the following order:
- Brothers and sisters
- Half brothers and sisters
- Grandparents
- Aunts and uncles
- Half-blood aunts and uncles (Any half-brothers or halfsisters of the deceased’s parents)
7. We offer two options of service for clients
where they are dealing with probate:
OPTION 1 - PROBATE ASSIST
What we will do for you:
- Complete the probate application form
- Complete the correct IHT forms
- Check the Will for potential problems
- Filing the probate application form with the correct probate registry
Our fee for this service is only £495 + VAT
By choosing this option you will:
- Have peace of mind knowing that the forms have been completed by an expert
- Have all probate and IHT forms completed by us within 5 days of receipt
OPTION 2 - COMPLETE SERVICE
If you are really pushed for time or particularly worried about making mistakes and being personally liable, then this stress free managed probate service could be the answer that you are looking for.
You will get the entire probate process completed for you – from start to finish. This saves you the most amount of time and effort and also removes the personal liability aspect from your shoulders.
You will put an end to the worry and anxiety caused by worrying about completing the probate and tax requirements and it will also save you in the region of 30-40 hours of your time dealing with the probate requirements.
This service is suitable for you if:
- You are finding probate too overwhelming or upsetting to deal with on your own
- You would rather get closure of your loved one’s estate with help from an expert
- You want an expert to take over and finish off all of the probate requirements for you.
- You want the weight taking off your shoulders
- You are worried about the prospect of making a mistake and being liable
What we will do for you if you choose this service:
- We will finalise the estate valuation process
- We will complete ALL of the probate paperwork, submit the application to the probate registry and obtain the Grant of Probate (there is no need for the executors to attend the probate interview)
- Complete the inheritance tax returns and calculate any tax due
- Arrange the payment of any tax due
- Collect in the assets and pay the liabilities of the estate
- Prepare the estate accounts
- Distribute the estate in accordance with the terms of the Will
- A reasonable fixed fee will be agreed with you at the outset which will be paid from the estate funds once probate is granted
- Complete all of the actions as listed in this guide for you
How you will benefit from this fully managed service:
- We will put an end to probate headaches and get the entire probate process completed for you from start to finish
- There is no risk – You pass on the liability for the estate to a probate professional – no more probate insomnia caused by worrying about making a mistake
- You will save the most amount of time (between 30-40 hours for the average estate)
- There is nothing to pay up front. The fee is paid from the proceeds of the estate after probate has been obtained.