What Is Probate?

Probate is the process of administering a person’s estate and involves organising their money, assets and possessions and distributing them in accordance with the will or the intestacy rules if no will exists.

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The person or persons charged to carry out the probate are known as the executor – however, the executor can ask for professional assistance with dealing with the will.

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In the past this assistance would have been completed by solicitors – however since 2014, members of the Institute of Chartered Accountants for England and Wales are also able to provide this service if the relevant qualifications have been achieved.

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What Is A Grant of Probate?

Before the assets of an estate can be distributed, the executor must apply for a Grant of Probate, a legal document that gives them the authority to deal with the deceased’s assets. Probate ends once all taxes and debts have been paid and all inheritance passed on.

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What is the Probate process:

1. Gather the full details of the estate’s assets and debts

2. Completion of an inheritance tax return and payment of any tax due

3. Apply for Grant of Probate

4. Receipt of the Grant of Probate

5. Payment of the deceased’s debts

6. Distribute the remainder of the estate according to the Will.

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How Long Does Probate Take?

The exact amount of time will depend on the size and complexity of the estate – with estates involving overseas assets usually taking longer.

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Normally probate is completed within 6 – 12 months but this is normally extended if there are problems with either:

• Financial institutions

• Asset valuations and sales

• The Beneficiaries

• HM Revenue

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Can the Executors access the Deceased funds before probate has been granted?

The answer to this is yes or at least in part.

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If an asset is owned jointly (this could be a house or bank account) then this asset will pass to the survivor without having to go through probate.

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Smaller bank or building society accounts can often be closed on the production of the death certificate and the funds paid out if this is agreed with the financial institution.

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In addition, the funds in the deceased bank account can be used to pay :

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• Costs of the funeral

• Inheritance Tax – this normally has to be direct from the bank to HMRC

 

How Much Does Probate Cost?

This will obviously vary between estates and will be determined by how much work is involved

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The fee can either be a fixed fee or a percentage of the value of the estate (normally 1% to 5%).

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Normally fees are split with part being charged once probate has been obtained and the remainder once the estate is to be distributed.

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Ideally, a schedule of assets and a copy of the will should be provided so that any estimated fees can be accurately calculated.

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Who Can Apply For Probate?

Only the executor(s) named in the Will can apply for probate to administer the estate. If any of the named persons don’t want to administer the estate, they can excuse themselves but only if they have not already been involved in dealing with the estate.

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What If there is no Will?

Then you cannot get a Grant of Probate, but the estate can be administered and distributed under the intestacy rules.  The rules of intestacy set out who can apply to administer the estate and who receives what. Only spouses, civil partners, children, and other close relatives can inherit under these rules.

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Can a will be challenged?

The answer is yes if it doesn’t accurately represent the deceased’s intentions for their estate, or because it is invalid for other reasons. You can contest a will if:

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• The Will has been forged

• The deceased had reduced mental capacity when writing their Will

• The deceased was under undue influence when writing their Will

• Someone was financially dependent on the deceased and the Will doesn’t provide for the dependent.

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Changing a Will

A will can be altered after a death by using a deed of variation within two years of death – this can be done to:

• Give assets to different people

• Give away a whole entitlement

• Create a trust instead of a direct inheritance

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This type of adjustment requires the approval of all beneficiaries whose inheritance will be reduced

 

Beneficiaries Rights

If you’re a beneficiary of a Will, you have certain rights that the executor of the estate needs to take into account.  If there is a valid Will, the beneficiaries of their estate will be named in the Will. If there is no valid Will, the beneficiaries will be chosen according to the intestacy rules.