After a loved one dies, it can be difficult to understand what steps need taken and how best go about taking them. The following blog post will answer some common questions associated with handling an individual’s estate after they’ve passed on including:
- What is probate and do I need it?
- What is estate administration?
- Are probate and estate administration the same thing?
Estate administration is the process of settling an estate after someone has died. Probate, on the other hand-is used for handling any assets or property that needs to be passed along within a legal framework; this includes drafting wills and powers of attorney as well determining how much wealth individuals leave behind when they pass away (in case there are ties).
The two terms aren’t always interchangeable but it helps if you keep these differences in mind so nobody gets confused!
What is Probate and why do I need it?
Probate is required when someone passes away to allow the family or the executors to legally deal with the deceased´s estate and assets. You may have heard the term “Grant of Representation”. This is an umbrella term for the types of grant you can get during applying for probate.
- Grant of Probate – where there is a valid Will
- Letters of Administration – where there is no Will
What does Probate involve?
- Completing the relevant application form depending on whether or not there was a Will
- Completing the relevant IHT forms where required
- Confirming the details of the deceased including providing an original death certificate
When is Probate required?
It is often believed that, when there is a Will, there isn’t a need for probate. Unfortunately this isn’t the case!
When someone dies, the process of Probate must be completed in order for their property and/or financial institutions ownership. This can include anything from banks or buildings societies; it all depends on what threshold they set.
When applying for probate, there is a set fee of £273.00 which is payable to HMCTS for obtaining either the Grant of Probate or the Letters of Administration. This does not apply, however, when the estate is worth less than £5000.
What is Estate Administration?
Estate administration is the process of handling all legal and financial affairs after someone has died, which includes dealing with their assets as well as debts or taxes before distributing inheritance accordingly so it can go towards whoever should receive them in accordance with wishes established during life.
In additional to obtaining Probate, the process will usually involve:
- Completing Inheritance Tax forms
- Income Tax work
- Postal redirection
- Registering or selling properties
- Valuing assets
- Cancelling or transferring utilities
- Dealing with shares and investments
- Distributing funds to beneficiaries
The whole process of estate administration can be extremely complex and time-consuming. However, it doesn’t have to take over your life! You could choose the option where you appoint a professional individual or company that will handle all tasks for an agreed upon price – this allows them some peace while still giving everything attention when needed most
How long does it all take?
The length of time that it takes to administer an estate can vary greatly depending on the individual specifics of each case. However, because this process is so complicated and diverse in its requirements for success—it’s not easy predicting how long any one administration will last without knowing more specific details about your situation!
