Probate is the legal authority to manage a deceased person’s assets, although the term has grown to become synonymous with the entire estate administration process that is required when someone dies.
This involves dealing with any money, property, and possessions they had at the time of their death, settling any outstanding debts, and dividing the estate among the people to inherit it (the beneficiaries).
If the deceased left a Will, they should have named an executor (or executors) in it, who is the person (or people) they want to administer their estate.
Without a Will, an ‘administrator’ will be appointed following the rules of intestacy who is responsible for the estate administration process. Collectively, executors and administrators are known as ‘personal representatives’ (PRs).
In this blog, our experienced Probate Solicitors look at the role of executors and administrators in the estate administration process and consider the steps involved in probate.
Who needs probate?
Probate (known as ‘letters of administration’ in cases of intestacy) is generally required if the deceased’s estate includes property, such as a flat or a house, or the person who died had significant assets in their sole name.
There are some circumstances when probate may not be required, including if the deceased’s estate is just made up of cash, the amount of money is small (generally under £5,000), or the estate is insolvent.
Executors and administrators should not sell property or access monies before finding out whether probate is required. PRs are personally liable for any mistakes made during the estate administration process and errors can prove costly.
At Langley Wellington our experienced probate solicitors in Cheltenham and Gloucester can assist executors with the entire probate process, from locating assets, to obtaining the grant of probate and distributing the estate to beneficiaries.
Personal representatives are entitled to appoint a legal professional to help them and have these costs paid for by the estate.
To find out more about our private client legal services or to speak with one of our team, call us on 01452 521 286 (Gloucester Office), 01242 269 998 (Cheltenham Office), email lawyers@langleywellington.co.uk or fill in this contact form.
What does probate involve?
There is a set legal process that must be followed when administering an estate. The main stages involved in probate are:
Step one: Register the death. In England and Wales, deaths must be registered with the relevant authorities within five days.
Step two: Value the estate. PRs must then collate the various assets that make up the deceased person’s estate. This can include houses, flats, money, investments, cars, jewellery and other personal possessions.
PRs must have a clear understanding of what an estate is worth, prior to moving towards an application for Probate/Letters of Administration. By obtaining accurate valuations, they are protecting themselves against any potential future claims.
Step three: Pay any inheritance tax (IHT) due. IHT is paid when a person’s estate is worth more than their personal tax-free allowance. Each individual has a tax-free allowance of £325,000, subject to any gifts made in the last seven years, with there being a further tax-free allowance of £175,000, where a deceased is gifting a property to their direct descendants. Read more about valuing an estate for IHT here. HMRC will start to charge interest if any IHT due is not paid within six months after the date of death.
Step four: Apply for grant of probate. PRs must then apply for a grant of probate (or letters of administration for intestate estates) which gives them the authority to administer the estate. This currently takes around 16 weeks.
Step five: Gather the assets in the estate. Once an executor has received the grant of probate, they should send copies to all relevant asset and liability holders, such as banks, building societies, mortgage companies, insurers, and utility providers, along with a request to release any funds. It is usually advisable to open a separate bank account for the estate so that all financial transactions are easy to track.
Step six: Pay off debts. Executors are responsible for paying off any outstanding liabilities, such as mortgages, credit card bills, and personal loans, and preparing the final accounts.
Step seven: Distribute assets. Once all final administration matters have been dealt with, PRs can then distribute the estate according to the instructions the deceased’s left in their Will or following the rules of intestacy.
Probate Solicitors Gloucestershire
At Langley Wellington, our experienced probate solicitors in Gloucester and Cheltenham provide specialist legal advice and support to executors or administrators dealing with the estate of a deceased person.
We sensitively and professionally guide personal representatives through the estate administration process, providing specialist legal advice at every stage.
We can also provide guidance if a loved one has died without a Will (intestate estate).
We have an experienced team of solicitors providing comprehensive legal advice on estate planning, including a member of the Society of Trust and Estate and Practitioners, recognised as specialists in this area of law.
Our estate administration solicitors provide legal advice on:
- Obtaining a grant of probate.
- Calculation and payment of inheritance tax.
- Collecting assets and arranging valuations.
- Payments of debts and expenses.
- Distribution of the estate to the beneficiaries.
- Correspondence with HM Revenue & Customs.
To find out more about our private client legal services, or to speak with one of our team, call us on 01452 521 286 (Gloucester Office), 01242 269 998 (Cheltenham Office), email lawyers@langleywellington.co.uk or fill in this contact form.
This blog is not intended to be taken as advice or acted upon. If you are seeking legal advice, please get in touch with our team of solicitors.
