Dealing with the estate of a deceased loved one can be a daunting process, filled with legal rules and specific restrictions. At its core, probate is the legal right to manage the estate of someone who has died, ensuring their property, money, and possessions are distributed according to their wishes or the law.
(Read Time: Approx. 5 minutes)
Topics Discussed:
- Understanding when probate is needed and who can apply
- Key considerations and steps in the probate process
When is Probate Needed?
Probate is not always necessary; it depends on the nature and size of the deceased’s assets.
Some assets, like jointly held properties, trust-held assets, and small bank account balances, may bypass the probate process.
- Jointly Held Assets: Automatically transfer to the surviving owner without probate.
- Bare Trusts and Small Accounts: Certain small sums and trust-held assets might not require probate.
- Death Benefits and Pension Schemes: Often pass directly to beneficiaries without probate intervention.
Who Can Apply for Probate?
The person eligible to apply for probate depends on whether the deceased left a will:
- With a Will: The named executors in the will apply for probate.
- Without a Will: The closest living relative usually applies to be the administrator of the estate.
When multiple executors are named, they must decide who will apply for probate, as it can only be granted to up to four people.
Special provisions exist if an executor is incapacitated or deceased, allowing other entitled persons to apply.
Steps to Apply for Probate
- Submitting an Application: Applications can be made online or by post, accompanied by the original will and any codicils.
- Addressing Mental Health Conditions: If an executor cannot apply due to a mental health condition, a medical professional must complete form PA14.
- Checking for Substitutes: Ensure the will does not name a substitute executor before someone else applies.
What if There is No Will?
If the deceased did not leave a will, the estate is handled under intestacy rules, which can be complex.
The closest relative typically becomes the administrator, and the estate is divided according to a set hierarchy of relatives.
- Intestacy Rules: Determine the inheritance based on surviving relatives and the estate’s value.
- Inheritance Distribution: The surviving spouse or civil partner inherits up to £322,000 plus half of the remaining estate if there are children. The children receive the other half.
Inheritance Tax (IHT) Liabilities
When applying for probate, you must estimate and report the estate’s value for IHT purposes.
The estate’s value determines if IHT is due, and probate cannot be granted until any owed IHT is paid.
From January 2024, HMRC streamlines the process by no longer requiring form IHT421 with probate applications.
Probate Fees
Fees can vary based on the estate’s value:
- Estates Under £5,000: No fee.
- Estates Over £5,000: A fee of £273, which is expected to rise to £300.
What Happens After Applying?
Upon approval, the will and any codicils (A codicil is a legal document that acts as a supplement to your last will and testament) are kept by the probate registry and become public records.
The applicant receives either a grant of probate (with a will) or letters of administration (without a will), allowing them to administer the estate.
Accessing Records
Records for individuals who died after 1857 can be searched and ordered online for a small fee.
This service includes checking if probate has been issued and ordering copies of probate documents.
Summary
The probate process can be complex and stressful, especially during a time of grief.
Understanding the steps and requirements involved can help ease the burden.
For professional and caring help during this time, get in touch with Saara at Help Me Legal today.
Saara’s experience as a probate expert can make the process as simple as possible – give her a call on 01772 282768, or use our 24/7 WhatsApp line at +447816848188.
Additionally, contact us through email by filling in the form here.