Probate
What is probate?
When someone dies, an application is made to the Probate Registry of the High Court to get permission to deal with their property and affairs. This process is called probate.
Who obtains probate?
When you make a will you can name the people you want to deal with your affairs when you die. Many people name solicitors to act jointly with immediate members of their family. The people you appoint are called
"executors".
If you don't leave a will, the law sets out who can apply to the Probate Registry. This is normally in line with your "next of kin". So if
you are married, it will be your spouse. If you are not married, it will be your parents, or, if they aren't alive, your brothers and sisters. In this situation, these people are called "administrators".
What do executors and administrators do?
If you don't leave a will, the law sets out who can apply to the Probate Registry.
Executors obtain a "grant of probate". Administrators obtain a "grant of letters of administration". Both procedures are commonly called "obtaining probate".
The usual term to describe executors and administrators is "personal
representatives".
Why do I need a grant of probate?
Unless the overall value of the property is very small - usually less than £15,000, you will have to show the grant of probate to banks, building societies, insurance companies and other financial institutions. This is so they can be sure you are entitled to deal with the deceased's assets and affairs.
What does it involve?
As a personal representative, you will have to fill in a number of forms and send them to the District Probate Registry. These are found in most large cities.
The type of forms will depend on whether or not there is a will. They include details of all of the deceased's assets and debts and will help you work out any inheritance tax that might be payable. Normally, if there is no surviving spouse, inheritance tax has to be paid when the value of the deceased's property is more than £300,000. For more information about this, please listen to the podcast on wills.
Is there anything else I have to do?
Before you can make an application, you have to work out the exact value of the deceased's assets at the date of death. This may mean you have to get formal valuations for items such as property, jewellery, household effects, cars and antiques.
You will also need to get the exact amount held in bank accounts, National Savings, shares and insurance policies from financial institutions. And you'll have to work out what debts they owed as this may affect the amount of inheritance tax payable.
If there isn't a will, you will also need to identify all of the people who would be entitled to share in the estate.
How long does it take?
The process can take time, depending on the assets involved. But you should normally be able to apply for a grant of probate within three months of the date of death.
What happens after I've received the grant of probate?
When you have the grant of probate, you can collect all the deceased's assets and pay all their debts. Then you can arrange for the distribution of the net estate to the beneficiaries named in the will. If there isn't enough money to pay all the debts or beneficiaries, there is a particular order in which you pay them.
If there isn't a will, the intestacy rules set out who is entitled to the property.
What if there isn't enough money to pay for a funeral?
When you arrange a funeral you make a contract agreeing to pay for it. So you should make sure there is enough money in the estate first. Otherwise you should be prepared to pay any part of the bill that isn't covered. You may be able to get a grant from your local Job Centre Plus if you are on benefits.
How much does getting probate cost?
It is difficult to be precise because it depends on the time it takes and the value of the estate. A solicitor should give you an estimate of the likely overall cost at the start of the process.
If the process becomes more complicated than they originally thought, the solicitor must tell you and let you know if they propose to charge more.
A rough guide would be to budget for 1.5 per cent of the gross value of the estate (before inheritance tax has been paid).
Can I do it myself?
There is no legal reason why you cannot do this yourself. However, there are a number of reasons why you might want to ask a solicitor to do the work for you:
- You will be coping with the grief and upset of having recently lost a loved one
- You are probably unfamiliar with the work involved, such as filling in the forms to obtain a grant
- You might not want to get involved in possible family disputes over a will
- If you make a mistake, you will have to pay out of your own pocket to put matters right. Solicitors are used to this work and, in the unlikely event they do make a mistake, they are insured.
- You may not be able to do all of the work to obtain the grant and administer the estate in a timeframe acceptable to the beneficiaries.
- A solicitor will be able to give you professional help and guidance.
Where can I get more information?
If you would like more information about the issues in this podcast, you can speak to experts from Russell Jones & Walker solicitors. You can also appoint us as executors. We don't charge a percentage of the value of your estate. Instead, our bill will be based on the time we spend working on it. We pride ourselves on dealing with estates quickly and efficiently.
Our contact details are on our website, yourlegalrights.co.uk, or you can ring our freephone number 0800 916 9065.
This fact sheet will give you some basic information about wills. You can also listen to it online or download it onto an MP3 player.
Please be aware that this is not legal advice and if you are concerned about any of the issues mentioned you should speak to a lawyer.
You can contact Russell Jones & Walker's solicitors at enquiries@rjw.co.uk.