Probate
Are you a named Executor considering undertaking Probate yourself?
Probate can be much more complex and time-consuming than people realise.
Dealing with a loved one’s affairs involves liaising with HMRC, banks, building societies, utility providers, phone TV companies and local councils. Following their death this can be extremely difficult and stressful, add to this the additional burden of having to liaise with and mediate between wider family and friends.
We provide Executor(s) or Administrator(s) assistance with obtaining the Grant of Probate and administering the estate, thus reducing some of the stress.
Responsibilities of an Executor
Gathering all the details of the Estate, both Assets and Liabilities.
Calculating the value of an estate is a time-consuming and often complex job which an Executor is legally required to do. This may take many months or even years if the estate is complex. Property has to be valued, shares valued, savings calculated, pensions valued, household goods, personal items and any other assets that may exist – the Executor is required to discover and value anything that is or may be relevant.
The Executor is required to ascertain and analyse the debts that are owed: For example HMRC, mortgages, credit cards, outstanding loans or finance arrangements along with any other financial liabilities. The Executor also has to consider, calculate and allow for funeral costs.
Valuing a House for Probate
This should be done professionally, otherwise The Executor will be liable to criticism by Beneficiaries, and could easily be in breach of HMRC tax regulations.
Applying for
Probate
A grant of representation obtained from the court. The grant also confirms the legal authority given to an Executor of a deceased’s will, to act in the administration of a deceased’s Estate.
HMRC and
Tax
The Executor must Contact HMRC if the Estate is over the inheritance tax threshold. The Executor is then required to arrange payment of any outstanding tax liabilities or reclaim any tax overpayment.
Receive Grant
of Probate
Once the Executor has finally determined and satisfied all the assets and liabilities and has settled all the outstanding issues with HMRC the Probate Office will be in a position to grant Probate.
Pay outstanding debts
At long last, the Executor is now entitled to pay off any outstanding debt that the deceased may have had.
Including paying for the funeral and funeral reception, any council tax owed or utility bills etc.
Distribute the balance of the estate
After this exhaustive process the Executor is finally in a position to distribute the balance of the Estate according to the instructions of the Will or the laws of intestacy.
Dealing with Family and Beneficiaries
After all the extremely hard work countless hours of toil, Executors get little or no thanks for what you have done for the beneficiaries.
They blame you for all the time it has taken, they blame you for all the fees paid, they blame you for having to pay HMRC There are countless family rifts from this process.
If your spouse dies without a Will
This situation is governed by the rules of intestacy which means at current rules you will inherit £322,000 of their Estate, plus 50% of anything else that is in the Estate. The remainder of the Estate will be divided amongst surviving family members according to the rules of intestacy. With Intestacy Rules non-married couples are not entitled to any inheritance if there isn’t a Will.
FAQs
What is Probate?
Probate is the process of dealing with the estate of someone who has passed away. This means obtaining a Grant of Representation (a Grant of Probate if there is a Will or a Letter of Administration if there is no Will).
Probate involves collecting all assets, paying any debts and taxes and distributing the assets in accordance with the Will or Intestacy Rules.
What is the Probate process?
In simple terms the Executor(s) must undertake the following:
Obtain details of the Estate’s assets and liabilities;
Apply for Grant of Probate;
Deal with HMRC regarding Inheritance Tax;
Pay any outstanding debts;
Collect monies owed to the Estate;
Distribute the remaining balance of the Estate in accordance to the Will.
Do executors need to apply for probate themselves?
If you do not wish to apply for Grant of Probate, you can instruct us to do this on your behalf.
Can executors sell a property before Probate is granted?
In short terms, no.
Before Executors can complete the sale of a property, the Executor must have Grant of Probate.
The property can be placed on the market but cannot complete until receipt of Grant of Probate.
When selling a property the buyers should be made aware that the Estate is pending Grant of Probate. .
How long does Probate take?
Obtaining Grant of Probate, as of November 2023, takes around 20 weeks to complete. Administering the estate can take around 12 to 18 months, depending on the complexity of the Estate and any disputes that may arise.
What rights to Beneficiaries have?
Beneficiaries have the right to be kept informed throughout the process.
The Beneficiaries also have the right to request a copy of the accounts of the estate.
What is the cost of Probate?
Our costs for obtaining the Grant of Probate are £600 inclusive of VAT.
The Probate Registry fees are £273 per application. Plus £1,50 per copy.
Our fees for administering the Estate on your behalf are capped at 3% of the value of the Estate.
Can you challenge a Will?
Yes, there are several reasons you may have concerns over the validity of a Will.
For example:
– Did the deceased have mental capacity?
– Is undue influence suspected?
Does an Executor get paid to administer an Estate?
As a non-professional Executor, you cannot be paid for your time spent. You can however, claim expenses.
Can claims be made against the Executor?
Beneficiaries can bring claims for undue delay, selling property below the market value or where the Executor does not seek professional advice.
We offer further advice to Beneficiaries and Executors regarding this matter.
Probate is Complex and Arduous
It is not uncommon for a family member named as Executor to fall out with other family members and beneficiaries – simply because of the time it takes to ensue things are done correctly.
Gifford Cairns can help with these complex negotiations.
Get a Free Consultation With Gifford Cairns
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Gifford Cairns Solicitors and PRHS are trading names of Philip & Robert Howard Solicitors Limited, registered in England and Wales: 08185212
Registered Office: 113 Wilmslow Road, Handforth, Wilmslow, SK93ER.
Authorised and regulated by the Solicitors Regulation Authority: 571131
