What is Probate?
Probate is the process of “proving” a Will or alternatively, establishing the validity of a Will. Where there is no valid Will, the process is called Letters of Administration. Personal representatives (executors or administrators if there is no will) must apply for probate or letters of administration.
Probate or Letters of Administration gives the representatives the legal authority to manage and distribute the assets in the estate of someone who has passed. How this this is supposed to be done is either set out in the Will or alternatively, in Law under the Rules of Intestacy.
Executors have the legal duty of locating all of the assets and paying any outstanding debts. Additionally, they must submit tax returns to HMRC along with locating all of the beneficiaries.
Table of Contents
What is a Grant of Probate?
Step one in administering an estate after death is to apply for probate, or letters of administration where there is no Will, which validates executors’ authority. You can do this yourself, or with the assistance of an authorised Estate Planner, or you can employ a solicitor to do it on your behalf.
Once granted, the process of administrating the estate can begin. This includes gathering all of the assets, paying any debts including Inheritance Tax and finally, distributing the remaining assets.
What are Letters of Administration?
Letters of Administration is granted to the representatives of an Estate when there is no Will. The persons who can apply for Letters of Administration are pre-set and follow an order of eligibility starting first with surviving spouse or civil partner.
The Letters of Administration are the same as the Grant of Probate, whereby the administrators obtain the legal authority to deal with the deceased’s estate.
Probate Process Explained
An estate administration process can be stressful and time consuming. This involves accessing bank accounts, selling any property they owned and paying any applicable taxes – an undertaking many find stressful and time consuming on its own. That is why many individuals seek assistance from a probate specialist.
The first step should be registering the death and reporting the estate value to HMRC through the application process. After that comes applying for probate or letters of administration.
It is important that you seek financial advice in relation to taxation, including Inheritance Tax, Capital Gains Tax and Income Tax.
Difference Between Probate and Full Estate Administration?
Probate is simply the process of applying to HMCTS for the right to deal with an Estate. Once the Grant of Probate or Letters of Administration have been granted, the probate process comes to an end. It is also seen as the first step in Estate Administration.
Estate Administration is what happens after the Grant or Letters have been received. This includes gathering all of the assets within the Estate, searching for assets where required, obtaining financial advice, paying any debts such as mortgages, overpaid benefits or pensions, funeral costs and taxes such as Inheritance Tax. It also includes locating all of the beneficiaries and distributing the estate in accordance with the Will or the Legal Rules of Intestacy. It is important that you keep a full set of Estate Accounts in all cases, something which a Financial Advisor can assist with.
You may wish to employ an Estate Planner to assist with obtaining probate or alternatively, a solicitor can complete the entire process on your behalf and their fees would be payable out of the estate.
How Long Does the Probate Process Take?
The process of obtaining the Grant of Probate or Letters of Admin can take a minimum of 6-8 weeks following making your application to HMCTS however, as with all government bodies and Court systems, they are experiencing delays.
The process of administering an estate can take considerably longer given the level of detail and work required. In most cases, administering an estate can take a minimum of 12 months.
What are the Responsibilities of the Executors?
The responsibilities of the executors and/or administrators include:
- Applying for Probate or Letters of Administration
- Arranging the funeral
- Contacting banks and other institutions to obtain information regarding the Estate
- Transferring assets to an Executor account
- Selling assets to realise the cash
- Closing bank accounts
- Talking to pension providers and life insurance companies
- Paying any overpaid tax, benefits, pensions and premiums
- Identifying and locating potential beneficiaries.
- Keeping a full set of Estate Accounts to document the money in the estate and distributions made.
- Where beneficiaries cannot be located, taking out insurance to protect them from personal liability.
- Distributing the assets under the terms of the Will or the Rules of Intestacy.
What Information You’ll Need to Apply for Probate?
In order to apply for probate, you will need the following information:
- The details of the Executors. If there are persons named who do not wish to act, you will need to provide reasons as to why they are not acting.
- The details of the deceased including their date of death and if they owned any assets outside of England and Wales.
- The value of the Estate – you can use the GOV online calculator to include these figures.
