Probate is the word used to describe the legal process of administering the estate of a person who has died, and, after deducting debts and other liabilities, transferring that person's money and possessions to the people who will inherit them: their beneficiaries.
As a general rule, if the person who has died owned assets in their own name, you will need a grant of probate. Exceptions include where the only assets involved are low value bank or building society accounts or if all of the assets are held in joint names.
You can, but bear in mind the complexities and the possible timescale. If you want to do probate yourself, Lawpack's Probate Kit provides you with an expert guidance manual and access to the probate forms.
Alternatively, we have teamed up with probate experts Kings Court Trust Ltd to offer their Probate Assist service, which gives you telephone guidance on how to complete the probate forms and make your grant of probate application.
It will depend on the amount of work necessary. A straightforward estate with a few UK based assets and a small number of beneficiaries will take less time to administer than a complex estate with numerous assets, both in the UK and overseas, and a large number of beneficiaries some of whom perhaps cannot be easily located.
On personal applications for grants of probate, the probate fee is currently £215, unless the net estate is less than £5,000, in which case no probate fee is payable for the grant.
You can either do probate yourself or you can seek professional advice from either a bank, Trust Corporation or solicitor, or from a stockbroker or other adviser. Whether an executor handles all the tasks involved in administering the estate or uses professional advisers is a matter of choice and convenience.
Should you want to do DIY probate, Lawack's Probate Kit can help. The Kit includes expert guidance and provides access to all the probate forms you need.
Alternatively, we have teamed up with Kings Court Trust Corporation to provide you with expert assistance on administering your estate. They provide a fixed price Probate Assist service which provides you with expert telephone assistance to help you complete your probate forms.
It depends. If the person who has died owned assets in their own name, you will need a grant of probate. Exceptions include where the only assets involved are low value bank or building society accounts.
Someone's estate is everything that they own; all of their assets (whether real property or personal property) and their liabilities.
Executors have the power to deal with the deceased’s assets from the date of death. But it’s not until they receive a grant of probate in England and Wales (known as ‘confirmation’ in Scotland), that the executors can prove their authority to those institutions and authorities that hold assets in the deceased’s name.
There are certain circumstances during probate where executors can be personally liable if they fail to correctly carry out the legal duties and procedures required; for example:
In England and Wales, when there is no Will, administrators are appointed in the following order of priority:
In England & Wales, the following can apply:
If there is no Will, the people who apply for the grant of probate are called ‘administrators’ (the term ‘executors’ is only used if the deceased wrote a Will) and the probate application is for a Grant of Letters of Administration, rather than a grant of probate.
In Scotland, the following can apply:
The fact that there is a recent and valid Will doesn't affect whether or not a grant of probate is required. If there are assets in the deceased's sole name that are above a certain value, probate is likely to be needed.
Around 50% of estates in England and Wales require this process.
Coping with bereavement is hard enough, but matters of estate administration are further complicated by financial institutions that don't make it easy to work out if probate is required.
Banks, building societies, share registrars and other institutions all have different requirements for dealing with a deceased person's account.
As a general rule, most institutions will release up to about £15,000 of an estate to the executors of the Will on production of a death certificate; that is, without the need for probate. However, thresholds can range anywhere from £5,000 to £30,000.
The Probate Advice Line has knowledge of the different requirements for various institutions, and can give tips where it may be possible to waive the need for a grant of probate if an asset is just over an institution's threshold.
As executor to your father’s Will, you have the power to deal with your father's assets from the date of his death. However, it's not until you receive a 'Confirmation' in Scotland that you can prove your authority to those institutions and authorities that hold assets in your father's name.
Application for Confirmation is made to The Sheriff Clerk of the Sheriff Court in the area in which the deceased had been domiciled at his death. A list of Sheriff Courts is available online at www.scotcourts.gov.uk or by calling the Scottish Courts Service on 0131 229 9200. The grant of Confirmation is proof to the public that the executors can realise the deceased's estate, collect from the deceased's debtors and distribute the assets, as determined by the will.
The executors can now send the Confirmation, or a Certificate of Confirmation, to all parties concerned, requesting whatever money is due to the estate. This money can be deposited into the executors' bank account from which debts of the deceased can be paid.
Up to a certain value, the estate is exempt from inheritance tax, but once you reach that threshold, there are quite considerable amounts of tax to be paid. The rates to be paid vary from time to time but you can find the latest figures at the HM Revenue & Custom's website.
You can calculate the tax yourself by using HM Revenue & Custom's Inheritance Tax interest calculator.
If you are finding the whole thing too much, then hand the tax calculation problem over to your local Capital Taxes Office and they will work it out for you.
When someone dies, they are entitled to their normal full year's worth of allowances. A tax return will need to be completed for the last period of their life from 6 April up to the date of their death and the tax will have to be worked out accordingly.
Income arising after death is treated as the income of the estate and becomes the responsibility of the trustees or executors. When the estate is distributed, both the capital and the income that has arisen since the date of death will be distributed according to the Will to the various beneficiaries and tax will be deducted from any income that has been received at the appropriate rate.
If you, as a beneficiary, receive income that's been credited to a deceased person's estate, then you will receive that income net of the appropriate rate tax and while you may have to pay higher rate tax on the income, there's also a chance that you might be able to claim some back or for there to be no adjustment at all. You should be issued with Form R185, which shows the tax suffered.
A trust is brought into existence when a person (called the 'settlor') transfers some of his assets to trustees (who become the legal owners) for the benefit of third parties, called 'beneficiaries' (the beneficial owners). A trust is a legal entity in itself. Another word for a trust is a settlement.
Sometimes trusts are created under a Will and sometimes they are created during the lifetime of the settlor. Sometimes trusts are created to save tax, sometimes to protect assets; there are many and various reasons for setting up a trust.
The main tax that affects Wills, triggered by the death of the person, is Inheritance Tax.
When someone dies the deceased's personal representative or executor will make sure that a personal Tax Return is completed from the start of the tax year to the date of the deceased's death.
From the date of the deceased's death to the end of the tax year the personal representative will have to account for tax and report to the beneficiaries on the tax that he or she has deducted.
Each year the personal representative will have to submit a Trust and Estate Tax Return to HM Revenue & Customs. But in the year in which the estate is wound up and all the assets have been distributed, the personal representative will only have to account for the tax on the income up to the date of distribution.
In practice, if probate value is less than £2.5 million and the total tax due by the personal representative is less than £10,000, HM Revenue & Customs will accept a single computation and one-off payment.