Dealing with Someone’s Estate After Death: A Guide to Probate
When a loved one passes away, it is crucial to handle their estate, which includes their home, savings, investments, and belongings. However, the process of distributing their assets is not as simple as following their wishes, even if they left a will. Instead, it requires following an official process called probate (or confirmation in Scotland), which grants the legal right to distribute the estate. This guide outlines the process specific to England and Wales when dealing with the estate of someone who left a will.
Understanding Probate
Probate is the term commonly used to describe the process of handling someone’s estate. It involves identifying all their assets and debts, evaluating the estate’s value, and transferring ownership. Executors, who are individuals named in the deceased’s will, are responsible for completing probate. They can be a trusted friend, family member, or a nominated professional like a solicitor. It’s important to note that hiring a professional is not necessary, and anyone can handle probate.
Grant of Representation: What You Need to Know
A “grant of representation” refers to two types of documents that may be required, depending on the circumstances:
- If the deceased left a will, you need to apply for a “grant of probate.”
- If there was a will but it does not name an executor, or the named executor cannot apply, or if there is no will, you will need “letters of administration.”
A grant of representation is an official document that allows access to the deceased person’s assets for distribution. Financial institutions, such as banks, will require this document before releasing funds.
Tips for Executors
Stephen Gold, a retired judge and executor, shares his experience dealing with his late aunt’s estate. In a three-part series, he provides invaluable guidance for those facing the task of handling a loved one’s finances. Gold shares his strategies for successfully navigating challenges with various financial institutions and offers advice on how to be a proactive executor.
Applying for Probate: Who is Responsible?
When someone leaves a will, they typically name executors to handle probate. The role of executor should have been agreed upon with the individuals named in the will. Executors are responsible for administering the will and managing probate. In some cases, individuals may choose to hire a solicitor to handle the process on their behalf. It’s important to note that you can relinquish the role if you haven’t started the process yet. The responsibility for applying for probate lies with the executors named in the will or, if there is no will, the closest living relative.
Valuing the Estate: What You Need to Do
Valuing someone’s estate requires identifying all their assets, including bank accounts, investments, properties, personal belongings, and more. You also need to account for any pensions, life insurance policies, and outstanding debts such as mortgages, credit cards, and loans. Additionally, funeral expenses can be deducted from the estate’s value. For financial assets, contact the providers for valuations as of the date of death. Properties should be appraised by estate agents or valuers, and all other belongings should be evaluated. Inheritance tax must be addressed, even if no tax is owed.
Inheritance Tax Forms: Filling Them Out
While it is difficult to avoid form-filling, most estates do not incur inheritance tax and are considered “excepted estates.” These estates do not require providing full details of their value, unless they fall under specific categories. The Gov.uk website provides a guide on valuing an estate for inheritance tax and reporting its value. The forms required depend on the date of death and the value of the estate, and the guide explains the appropriate processes to follow.
The Process of Applying for Probate
If there is inheritance tax to pay, you must wait 20 working days after submitting the tax forms to HMRC before applying for a grant of representation. The government encourages online applications, as they are processed faster than paper applications. You can apply online and find assistance with the application on the Gov.uk website. If you prefer filling out a form, use PA1P if there is a will or PA1A if there is no will. The form requires details about the deceased and their family, as well as information from the inheritance tax stage. A fee may be applicable, depending on the estate’s value.
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