Following the loss of a loved one, the last thing most people want to consider is what this means from a legal perspective. Probate – the process of managing a deceased person’s estate – can seem complex and overwhelming, especially when you’re grieving.
Whether you have been named as an executor in the Will or are applying for Letters of Administration, in this blog, Amber Roberts, a solicitor in our private client department, outlines the key stages of the probate process, helping to provide clarity for those facing what can feel like a daunting task.
Step 1: Registering the death
The first step is registering the death with the local authorities within five days. Following this, you will receive a death certificate, which will be required by multiple organisations throughout the process. As a result, it’s advisable to obtain several copies.
Step 2: Identifying assets and debts
As an executor, you then need to identify any assets and debts that the person held. Assets might include property, money, investments and personal possessions, whilst debts can include mortgages, loans and bills. This can feel like a complex task, so we offer an initial meeting to take details of the assets and debts you’re aware of and provide tailored advice and support with identifying others.
Step 3: Obtaining asset valuations
Once you have a clear picture of the person’s estate, you need to obtain asset valuations, including the value of any property. At Hill and Company, we can support you in contacting relevant organisations and obtaining these valuations to ensure they are accurate.
Step 4: Determining Inheritance Tax liability
You must then calculate whether Inheritance Tax (IHT) is payable, taking into account any exemptions, allowances and reliefs. The current base threshold is £325,000 but you might be able to claim the Residence Nil Rate Band (RNRB), which is up to £175,000 and applies when a home or share of it is passed down to direct descendants. If IHT is due, or you are claiming a predeceased spouse’s transferable residential nil-rate band, then you will need to submit an IHT return.
It’s also important to check the last seven years for gifts to individuals and trusts, which may not be exempt from the IHT calculation. Determining IHT liability is one of the most complex aspects of the probate process and our tax and estate planning specialists can provide support with ensuring this is completed correctly and advise on any exemptions, allowances, reliefs and deadlines to ensure that you do not pay more than you have to and do not incur penalties or interest.
Step 5: Applying for Grant of Probate
Executors must then apply for Grant of Probate, which provides legal permission to administer an estate. If there is no Will, a family member can apply for Letters of Administration. We can support with drafting and submitting the legal statement that forms the basis of the probate application.
Step 6: Receiving Grant of Probate
It usually takes between 4 and 12 weeks to receive a Grant of Probate, after which executors are permitted to sell or transfer property, close accounts and collect any funds due to the estate. At this point, any debts, funeral costs and tax liabilities owed from the estate also need to be settled. We can help to ensure that this process has been completed correctly to prevent any personal liability.
Step 7: Preparing estate accounts and distributing the estate
The final step is the creation of estate accounts which outline everything that has been transferred and deducted from the estate; we can support you in preparing these documents. The executors can then distribute the remaining estate according to the Will or intestacy rules, which determine who receives what when a person dies without a valid Will.
Why choose Hill and Company to handle probate
At Hill and Company, we’ve been supporting families in our community and beyond for more than 170 years. Our professional, empathetic probate team understand the weight that the process can place on grieving family and friends and we’re here to support you every step of the way. We ensure loved ones’ wishes are fulfilled and everything is taken care of to enable you to focus on what’s important.
Whether you’d like us to manage the full estate administration or just need support with obtaining the Grant of Probate, get in touch to find out how we can help.
