Probate and Estate Administration

Probate is the legal process during which executors manage the deceased’s estate. Executors will identify and settle all liabilities, including paying any inheritance tax that’s due within the required six months of death. Executors then distribute the deceased’s assets in accordance with the terms of the will. The ‘Grant of Probate’ is the legal document issued by the Probate Registry (part of the High Court) that proves the will is valid. It confirms that the executors named in the will are legally entitled to deal with estate assets. In practical terms this means the executors are able to sell the deceased’s property and deal with other assets like funds in bank accounts and investments.

If there is no will those closest to the deceased can apply for Letters of Administration to deal with assets and administer the estate.

Obtaining a Grant of Probate (or Letters of Administration if there’s no will) can be a time-consuming process. Inheritance tax must be paid within six months of death. However there is no set time limit during which an estate must be settled – although it’s natural that families and loved ones will want finality and closure of the estate as soon as possible. It can take anything from between 3 and 16 weeks to obtain the Grant from the Probate Registry in the first place (longer if there are errors in the paperwork and your application has to be resubmitted). After that, realising the deceased’s assets is dependent on how efficient banks and other institutions are in responding to requests for payment. At DMH Stallard we work hard to finalise estates efficiently, using technology and well-established internal processes to streamline and speed up the process. This ensures families and loved ones benefit from any inheritance without undue delay and are able to move on with their lives, secure in the knowledge that all debts and tax have been paid.

Where someone dies intestate, instead of a Grant of Probate, banks and other institutions will need to see Letters of Administration to release assets. You’ll also need Letters of Administration to sell the deceased property and other possessions.  The process for applying for Letters of Administration is similar to that used for applying for a Grant of Probate. Because there is no will, the estate will be distributed according to the intestacy rules which prioritise the deceased’s spouse, children and other direct descendants over others.

Probate applications can take several months. During that time you or your solicitor can access the Probate Registry tracking system to monitor progress. For us at DMH Stallard this is a useful way to flag concerns about undue delay that may hamper our efficient handling of the estate on your behalf.

Most of the estates we administer require Grants of Probate because they tend to be high value and comprise complex assets sometimes located in multiple jurisdictions. Often, we are required to deal with trusts set up by the deceased in his or her will or during their lifetime.

However Grants won’t be required in certain cases, including in estates where:

• The deceased had no high value assets (banks will usually release funds up to £20,000 without a Grant of Probate, for example)
• Where the deceased owned property jointly that property can be transferred to the joint owner without the need for a Grant of Probate (unlike cases where the deceased owned a property in his or her sole name where a Grant will be necessary to deal with the estate)

Executors are responsible for handling the deceased’s estate. Unlike ‘administrators’ who are appointed by the Probate Registry when there’s no will, executors get their authority to deal with the estate from the will itself. Functions of executors and administrators include:

• Applying for Grant of Probate or Letters of Administration
• Valuing the estate for inheritance tax purposes
• Paying inheritance tax within six months of death
• Paying all debts on the estate
• Selling any assets that need to be sold
• Preparing detailed accounts for the estate to verify expenditure incurred in administering the estate
• Distribution assets in line with the deceased’s wishes as expressed in the will or in accordance with the intestacy rules

Acting as executor (or administrator) is an onerous task. You have duties to the estate and to beneficiaries and are legally responsible for estate assets and debts from the date of death until the estate is finally wound up. In estates of any substantial size it’s common for solicitors and other professional advisors to either act as executors or provide executors or administrators with ongoing advice during the estate administration.

Many people handle all aspects of estate administration themselves but there are advantages in instructing solicitors to deal with probate. For example:

• Getting professional advice means you and your family don’t have to deal with what can be a complex and challenging process – unwelcome at a time when you are grieving the loss of a loved one
• Familiarity with the process and the way the Probate Registry operates can ensure that solicitors manage the estate efficiently
• Solicitors can provide advice on post-death legal matters, including post-death variations of a will to reduce inheritance tax or where a beneficiary wants their inheritance to go to someone else
• Having a solicitor professionally focused on the progress of the estate at all times minimises the potential for errors or omissions that could delay distribution of assets
• Solicitors are bound by a strict code of ethics and must have professional indemnity insurance in place