Probate
When a close person passes it can be stressful dealing with their loss and getting to terms with life without that individual. On top, dealing with their estate can be an added stress.
The first step in dealing with the estate is to obtain authority, which is commonly known as Probate.
What is Probate?
Probate is the legal process of reviewing a deceased persons asset and distributing them amongst inheritors. Often the process will commence by determining if a valid Will has been made.
Before an executor (named in the will) can commence the distribution of a deceased estate a Grant of Probate needs to be obtained.
However, if a person passes without a Will, the estate will be distributed as per the intestacy rules when a Grant of Representation would need to be obtained.
Process
Probate involves around 5 steps which are simplified below: -
Step 1: Determine all assets and liabilities
Substantiate who is entitled to what part of the estate via a Will or intestacy rules
Step 2: Pay Inheritance tax
Apply for Grant of Probate
Step 3: Settle any Inheritance Tax with HMRC, and repay other liabilities
Perform wishes of the Will – may involve selling assets.
Step 4: Prepare Estate accounts
Approve accounts with all executors
Step 5: Transfer assets
Distribute remaining estate funds
Why choose us as your professional Probate administrators?
Professional service:
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Free face to face meeting – Completion of our PID form (Probate Information Document)
Rules & Regulations:
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Our team are equipped with the correct competency to deal with complex tax reliefs and compute additional returns, claims from the Department of Work & Pensions
On first death:
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If during the first death the process is not correctly followed and recorded, such as creation of any trusts, on second death it is even difficult to administer. We provide a thorough process on first and second death to help relieve the stress for Personal Representatives.
Beneficiaries and distribution:
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Certain procedures that must be followed in order to protect Executors and beneficiaries – would a lay person know this?
Administration can be complex:
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All these add to the complexity of administration – there is no such thing as a simple estate. Your case handler will be in touch with you at every step of the way.
Time scale:
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This process can often continue for over 12 months and be stressful to the personal representatives.
Executors Liability:
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Generally, executors can have unlimited liabilities therefore, if the process has not been correctly followed they can be liable personally.
Our Probate offering:
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Dedicated case handler
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Three packages to choose from: -
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Grant Only Service – ideal for very simple estates with minimal assets but a Grant of Probate is required. We will arrange the completion of the relevant IHT forms and obtain the Grant of Probate in the clients names. (Not suitable for estates that require an IHT400/over NRB or where the deceased died intestate).
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Grant Only & PPT Services – We will obtain the Grant of Probate in the clients names as above and if there is a Property Protection Trust/Life Interest Trust within the will, we will arrange for this to be set up and registered with HM Land Registry.
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Full Administration – For this service we will act under a Power of Attorney and deal with all aspects of the estate from obtaining the Grant to drafting Estate Accounts and distributing funds to beneficiaries. We quote on a case by case basis for full administration as all estates are different and require us to carry out different work.
Please note: The prices will be quoted based on the level or work and not the value of the estate.
case study
Mr J Died and his house was jointly owned with his wife Mrs J. After his death, his children (the executors) took the Will and death certificate to the Bank and sorted the accounts. The Will contained a PPT for Mr J’s 50% share of the property; nothing was done about the property! The PPT was never set up!
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years later
Mrs J is about to be discharged from hospital into a care home and she has to pay her own fees because she is a homeowner. The children are now distressed because they believed the Will protected their father’s half of the property but they never set up the trust resulting in Local Authority considering that Mrs J owns the whole property.
Is there a solution?
If the executors set up the trust now it would be deemed to be asset deprivation on timing and the value would still be used for care costs.
This is not an isolated incident. Many lay executors get it wrong or ignore the setting up of trusts.
On behalf of APS Legal & Associates Ltd, Head office: Worksop Turbine Innovation Centre, Shireoaks Triangle Business Park, Coach Close, Worksop, Nottinghamshire, S81 8AP. APS Legal & Associates is a member of the Institute of Professional Willwriters. APS Legal & Associates complies with the Trading Standards Institute Approved IPW Code of Practice