‘Probate’ in its strictest sense is defined as the legal authority to deal with someone’s property, money and possessions after their death.
However, the term has expanded in recent years to now represent the entire estate administration process that is required when someone dies.
In this blog our experienced Probate and Estate Administration Solicitors consider the probate process and answer some frequently asked questions.
When is probate needed?
Probate is not always needed as part of the estate administration process, and whether it is necessary depends on the financial situation of the person who died.
If the deceased owned property in their sole name or owned high-value assets (generally over £5,000, although every financial institution has their own rules and thresholds), it is likely that probate will be required.
Probate will not normally be needed if an estate only consists of jointly owned property and money, which automatically passes to a spouse or civil partner upon death.
Who is responsible for probate?
If the deceased left a Will, it is an executor’s responsibility to apply for probate and administer their estate.
If there is no Will, a person is said to have died ‘intestate’ and an ‘administrator’ will be appointed under the rules of intestacy. This is usually a family member or close relative of the deceased.
Collectively, executors and administrators are known as ‘personal representatives’ (PRs).
Do you need a solicitor for probate?
Probate can be complicated, time consuming and often involves complex legal, tax and financial work.
A solicitor can help. Personal representatives are entitled to appoint a legal professional to help them and have these costs paid for by the estate.
If you have been appointed an executor or administrator and need some advice, get in touch with Bookers & Bolton.
Our experienced probate solicitors in Alton, Hampshire can assist personal representatives with the entire probate process, from locating assets, to obtaining the grant of probate and distributing the estate to beneficiaries.
To speak to one of our specialist probate solicitors, please get in touch with us on 01420 558335, email us at enquiries@bookersandbolton.co.uk or make an online enquiry here.
What does probate involve?
After the death has been registered, the probate process can be broken down into several main stages:
Stage one: Identifying assets.
Executors and administrators first must build up an accurate indication of the value of the deceased’s estate.
This is done by collating their various assets (such as property, investments, money in banks and building society accounts, shares, cars, jewellery and other personal possessions) and identifying any liabilities (for example, mortgages, loans, utility bills).
Stage two: Paying any IHT due.
Inheritance tax (IHT) is due on an estate that is worth more £325,000, subject to any gifts made in the last seven years.
This threshold is transferable between spouses and civil partners, meaning that if the threshold has not been fully used when the first person in a marriage or civil partnership dies, the unused part can go to the surviving spouse or civil partner.
If none of the £325,00 threshold was used when the first partner of the couple died, the nil-rate band can therefore be as much as £650,000.
Find out more about transferring nil-rate band to a surviving spouse or civil partner on the government’s website by clicking here.
If the deceased is gifting property to their direct descendants, there is a further tax-free allowance of £175,000.
IHT must be paid to HMRC by the end of the sixth month on the applicable estate in order to avoid additional interest being charged.
Check whether you need to pay IHT on an estate by using the government’s IHT calculator by clicking here.
Stage three: Applying for grant of probate.
Known as ‘letters of representation’ in cases of intestacy, executors must then apply for a grant of probate, which gives them the legal authority to administer the estate. This usually takes about 12 weeks.
Stage four: Gathering assets and paying debts.
After the Probate Registry has issued the grant of probate/letters of representation, PRs should send it to the relevant asset and liability holders (such as banks, building companies, mortgage companies, and insurers), settle any debts, sell any property and compile any funds.
It is advisable at this stage to open a separate bank account for the estate so that transactions can be easily tracked.
Stage five: Distributing assets.
Once the final accounts have been prepared, executors and administrators can then distribute assets to the beneficiaries as set out in the deceased’s Will or according to the law of intestacy.
Probate Solicitors Alton
At Bookers & Bolton, our specialist probate solicitors are equipped to handle every type of estate administration matter for estates of all amounts and sizes and are on hand to relieve some of the pressure by providing support to executors or administrators.
We can also offer specialist guidance if a loved one has died without a Will (intestate estate).
Our probate legal service includes:
• Identifying the legally appointed executors or administrators and beneficiaries.
• Accurately identify the type of probate application you will require.
• Obtaining the relevant documents required to make the application.
• Completing the probate application and the relevant HMRC forms.
• Drafting a legal oath for you to swear.
• Making the application to the probate court on your behalf.
• Obtaining the probate and securely sending two copies to you.
• Collecting and distributing all assets in the estate.
• Calculation of income tax and capital gains tax and correspondence with HMRC.
For legal advice from our experienced private client team, please get in touch with us on 01420 558335, email us at enquiries@bookersandbolton.co.uk or make an online enquiry here.
We can also help you with other legal services such as Wills, Lasting Power of Attorney, Family Law, Conveyancing and Business Law Services.
