Step by Step Guide to Probate
When someone dies leaving assets over a certain amount, the personal representative of the deceased will need to apply to the court for a Grant of Probate in order to deal with the financial affairs and property and to distribute legacies to the beneficiaries of the estate. Where the deceased died without a Will, the personal representative will need to apply for Letters of Administration. This process is commonly known as Probate.
Probate can often be complicated, confusing and lengthy, often taking months to complete. Unless you’ve experienced bereavement before you will probably be unsure of just what you have to do. So here is a step by step guide to Probate:
1. Unless the deceased’s estate is small (less than ?5,000) and no house or other property is involved, an application to the court for the Grant must usually be made, otherwise you will not be able to access the bank accounts, sell the deceased’s home, transfer shares to beneficiaries, and so on.
2. To apply for the Grant, you will need to give an estimate of how much the estate is worth. This is basically the total value of the assets less any debts due, including any inheritance tax that needs to be paid.
3. Some or all of the inheritance tax due, if any, must be paid before the Grant is given by the court. This must usually be paid within six months of the date of the deceased’s death.
4. When the Grant is received, the main stage of ‘collecting in’ the assets of the estate can be carried out. This means applying for the money in bank and building society accounts, transferring shares, selling land or property and putting the proceeds of sale into a special bank account, dealing with life policies and valuing possessions such as jewellery and antiques. It also includes paying off the debts of the estate, for instance, utility bills and loans and tax.
5. The net estate, i.e. what is left, can then be distributed among the beneficiaries. These are the individuals and any organisations named in the deceased’s will. Where there is no will, those entitled to inherit the deceased’s estate are set out in the statutory intestacy rules, starting with the closest living relative.
6. Before any funds are distributed to beneficiaries, it is necessary to draw up estate accounts setting out the income and outgoings of the estate and the legacies paid to the beneficiaries. As the personal representative, you will be asked to check and approve the accounts.
If you are a personal representative, seek early legal advice from an experienced legal organisation: it will give you peace of mind at a time when the legal help and support from an expert can make all the difference.
Find out all you need to know about probate services by contacting an organisation you know and can trust and they’ll explain everything from intestacy to grants.
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