Probate is the legal and financial process involved in dealing with the property, money and possessions (called the assets) of a person who has died. Before the next of kin or Executor named in the Will can claim, transfer, sell or distribute any of the deceased's assets they may have to apply for Probate.
When Probate has been granted through a Grant of Probate or Letters of Administration the next of kin or Executor can start to deal with the deceased person’s assets in accordance with their Will. If the deceased died without a Will the Law will determine who should receive everything.
Generally, Probate is needed for a deceased person’s estate if:
• the deceased person’s estate contains land, buildings or a house that is not co-owned with a surviving spouse or civil partner who will automatically own it on the deceased’s death
• the estate includes accounts containing more than £5,000 at banks or other institutions that require a Grant of Probate to be obtained.
There are three main stages to obtaining the grant, which are outlined on our Probate services page. In summary these are (i) Investigating the extent of the estate, (ii) Completing tax returns and applying to the Probate registry for the grant and (iii) Collecting in the assets, paying the debts of the person who has died and distributing the remaining estate. The process often relies on specialist legal and tax knowledge.
Probate is the role of the Executor(s) named in the Will. If a Will wasn’t left, the job of dealing with a person’s estate falls to their next of kin, who becomes known as the Administrator. In this case, the process is known as ‘Administration’.
Executors and administrators are personally liable to the beneficiaries for any mistakes they make in the administration of the estate, for example not paying all the liabilities before distributing the estate, paying assets to the wrong people, or not settling creditors’ demands in the correct order. Other problems could include going ahead assuming there is no valid Will when there is one or using a Will which is proved to be invalid. Therefore, it is advisable to use a specialist firm, such as South Hams Wills and Probate, who are licensed to carry out this specialist work and deal with the whole process for you.
No, as long as you are the executor or administrator you can choose any Probate specialist you like.
This depends upon how complicated the estate is; if there are multiple investments and properties then it is likely to take longer than for a person who only has one bank account. Probate does require some laborious and highly detailed administration work. It typically takes between three and six months to get a Grant of Probate (or Letters of Administration if there isn’t a Will). Once this has been obtained, it often takes between one and three months to distribute the assets, depending upon the complexity and amount of assets that the person owed.
South Hams Wills and Probate will calculate any Inheritance tax liabilities arising from the estate; these will have to be paid before Probate can be granted. This tax needs to be paid within six months after the end of the month of a person's death, otherwise HMRC charges interest for late payments.
We offer a free initial meeting to discuss the nature of the assets in the estate and agree the extent of the work you wish us to do. Every probate case varies in complexity, depending on the number of properties, investments, and beneficiaries and whether inheritance tax is payable. Our charges are based on time taken, rather than a percentage of the estate, because we feel it is fairer, and generally cheaper. Our hourly rate is £130 plus VAT per hour.
The information below gives an indication of our likely charges in two scenarios – one when acting for the executors of a relatively simple estate, and secondly for where we are asked to complete the full administration of the estate.
Scenario 1 (Simple) – an estate where a grant of probate is required. We are dealing with a new client whose mother has recently died. Her mother was a widow, so the last surviving parent. There is a valid, non-contested will. The daughter, our client, has been named as the sole executor in the will. The total value of the estate is £200,000 and consists mainly of bank accounts. There are no complicating factors. We need to help our client to obtain a grant of probate, but you will not need to administer the estate. Estimated costs between £1,000 and £2,000 plus VAT and disbursements.
Scenario 2 (complex) – a full administration of estate including obtaining a grant of probate. We are dealing with a new client whose father has recently died. His father was a widower, so the last surviving parent. The deceased also inherited the entire estate of their spouse. There is a valid and non-contested will. The son, our client, has been named joint executor in the will with his sibling. The total value of the previously inherited estate is £370,000 and the value of the estate in question is £350,000. The combined total takes the value of the estate over the IHT threshold. The estate includes cash, residential properties, a property abroad and a private pension scheme. There are beneficiaries under 18 so the process involves setting up a trust. We will need to help our client to obtain a grant of probate and administer the estate. Estimated costs between £3,000 and £5,000 plus VAT and disbursements.
In addition to our charges there will be potential other costs that could apply – e.g. probate application fee, bankruptcy searches, fees associated with transfer/encashment of investments, foreign currency transfers, sale or transfer of a property in the estate. These fees change over time, we will give you a more accurate quote once we have more information.
T: 01548 858806
E: vanessa@southhamswills.co.uk
South Hams Wills and Probate
16 Highfield Drive
Kingsbridge
TQ7 1JR
South Hams Wills and Probate is a division of Longley Consulting Ltd
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