What is Probate?
Probate is a process by which a legal document (known most commonly as the Grant of Probate or Grant of Representation) is issued in the United Kingdom by the Probate Registry. This document allows the personal representatives to deal with the assets of the person who died and distribute them in accordance with their wishes set out in the Will. These assets are usually in the deceased’s sole name. The personal representatives are usually the executors named in the Will and are the people permitted to administer the deceased’s estate. Without the Grant of Probate, the executors are unable to deal with their loved ones assets.
If a person dies without making a Will or if there is a Will but it is deemed legally invalid, then the rules of intestacy apply. The person who died will be known as an intestate person. There are rules in place which state who is able to deal with the estate and this is usually the deceased’s closest family members. The family member or members who are permitted to deal with the deceased’s estate will need to apply for the Letters of Administration. (Which can also be referred to as the Grant of Representation). It is normal for the spouse and children of the deceased to inherit the estate.
How Long Does It Take To Finalise The Probate Process?
The length of time it take to obtain the grant of probate depends upon the complexity of the estate and whether or not the personal representatives are required to give a detailed account of the assets owned by the person who died.
Matter such as country of domicile, business assets, the value of the estate and inheritance tax liability can all play a part in the complexity of an estate.
A simple estate could take anywhere between 9-12 months however a complex estate could take more than 18 months before distribution can take place.
In most cases, there is no need to give a detailed account of a person’s estate and an application can be made by the personal representatives either online or by post. Often people choose to instruct a solicitor however many elect to deal the administration themselves.
Statistics from the 2021-2022 show that roughly 1 in 20 estates paid inheritance tax and so in most cases a detailed assessment of an estate will not be necessary.
If a detailed assessment of a deceased’s estate is required the personal representatives must complete the IHT400 and relevant schedules. The value of the estate must be reported to HMRC before the grant of probate can be issued, once accepted HMRC will inform the probate registry that application can be approved by issuing a receipt, this can take anywhere between 4-6 weeks.
Prior to submitting any application the personal representatives must identify the deceased’s assets, this may be investments, shares, properties and personal possessions. In addition, the deceased’s liabilities or debts must also be identified, these are usually loans, mortgages, credit card bills, outstanding utility bills etc.
Once the assets and the value of the estate are confirmed then the personal representatives can submit the application to the probate registry.
It can take anywhere between 7 – 20 weeks from submission of the application for the Grant to be issued once the application has been submitted to the relevant probate registry.
Is Probate Always Required?
If the deceased had property which was owned as joint tenants, the principle of survivorship applies their share automatically transfers to the surviving owner or owners irrespective of the Will. The same applies for bank accounts held jointly.
Additionally, if the deceased held funds in a bank or building society worth no more than £5,000 a Grant of Probate is not usually not required. Banks are not obliged to release any funds without the grant of probate
If assets are held on trust such as life insurance policies and lump sum death in service benefits these are payable directly to named beneficiaries at the discretion of trustees. These assets do not form part of the deceased’s estate.
If you are still unsure of how to proceed or whether probate is still required then contact our team of experts for assistance.
