WILLS & PROBATE LAW
What is Probate?
Probate is a legal procedure that confirms the authority of an executor to manage and distribute a deceased person’s estate. If the deceased left a will, the named executor(s) apply for a “Grant of Probate.” If there is no will, the process involves applying for “Letters of Administration,” and the estate is managed according to intestacy laws.
When is Probate Needed?
Probate is usually required if the deceased owned property or had significant assets solely in their name. However, if the estate is small or assets are jointly owned, probate might not be necessary. Each financial institution has its own threshold for requiring probate, so it’s essential to check with them directly.
The Probate Process: Step-by-Step
The will typically names one or more executors responsible for managing the estate. If no will exists, the closest living relative usually takes on this role.
Compile a list of all assets and liabilities. This includes property, bank accounts, investments, personal possessions, and debts. Accurate valuation is crucial as it affects inheritance tax calculations.
Complete the necessary forms, including the PA1P (for estate with a will) or PA1A (for intestate estates). Submit these forms, along with the will and death certificate, to the Probate Registry.
If the estate's value exceeds the current IHT threshold (£325,000 for the 2023/24 tax year), the tax must be paid. Executors need to complete an IHT return and arrange for payment, which may require selling some assets.
Once the Grant of Probate is obtained, executors can settle debts, pay any remaining taxes, and distribute assets according to the will or intestacy rules. This stage involves liaising with banks, financial institutions, and beneficiaries.
Executors should maintain accurate records of all transactions and communications. This transparency helps avoid disputes and ensures a clear audit trail.
Common Challenges in Probate