What is a ‘grant of representation’ and when is it needed?
When someone dies they invariably leave behind property and other assets that will be distributed among their loved ones. There may also be debts that need to be paid off, and in certain circumstances inheritance tax to be paid to HM Revenue and Customs. Someone has to be legally responsible for dealing with these assets and debts and they are known as the deceased’s personal representative.
Who can act as the personal representative is determined by whether the deceased left a will. If there is a will, the will should have named executor(s) who will act as the personal representative(s). If however, the deceased died without a valid will then the Rules of Intestacy will determine who will act as the personal representative (also known as the administrator). This is based on the nearest next of kin.
The personal representative will require formal evidence of their legal authority in order to deal with the estate. This authority is known as the grant of representation and is issued by the court. It is the legal document that the personal representative must produce to show their legal right to deal with the deceased’s property and assets, such as bank and building society accounts.
Where the deceased left a valid will, this legal document is called the Grant of Probate, and where there is no will it is known as Letters of Administration. Unfortunately, it is a common misconception that those entitled to the deceased’s assets are automatically entitled to deal with the estate, but this is not always the case. Certain assets such as shares and property must have a Grant of Representation to allow them to be dealt with.
The grant of representation gives the personal representative the legal power and responsibility to administer the estate according to the law. They must collect in all the assets, pay off any debts including funeral expenses, sell property when appropriate and distribute what is left to the beneficiaries in the will or those entitled to it under the Rules of Intestacy.
When is the grant needed?
A grant of representation is not always legally necessary. Where the deceased left assets (other than shares and property) of less than ?5,000, all that is required to legally deal with the estate is to produced the original death certificate.
However, if there are more sizeable assets, then the personal representative will be required to produce the grant in order to access assets and administer the deceased’s estate.
If a loved one has died and you need advice on applying for a grant of representation or power of attorney and when you might need it, speak to a probate expert for further help.
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