Administering probate correctly in England
This involves managing a deceased person’s property, money and possessions in accordance with the law. First, their executor must settle the debts. After that, they must distribute the assets according to the will, or failing a will, to close relatives.
UK law defines these activities as ‘administering probate’. Probate involves validating a will (if it exists) and then appointing an executor to manage the deceased’s estate. This article explains how probate works in practice, who is responsible, the key legal stages, and where to find the relevant UK law.
Legal Basis for Administering Probate in England
The Church once administered the estates of wealthy people in terms of the laws of succession. Their influence waned with the Wills Act of 1837, and the Inheritance (Provision for Family and Dependents) Act of 1975
The latter allows some relatives and / or dependents to claim support, if a will does not make reasonable financial provision. The Administration of Estates Act of 1925 defines who inherits in the absence of a legal will. These laws provide a framework for administering probate correctly in England
The Correct Way to Start the Probate Process
An executor should not dive in, and start paying bills and sharing assets right away. They may need to get permission from the UK government first, in the form of an official ‘grant of probate’. An executor needs to keep the following in mind:
- There is no official probate threshold under UK law.
- Financial institutions almost inevitably insist on probate.
- You can’t legally transfer property without probate.
An executor should therefore consider applying for probate if the estate is worth more than £ 5,000, on the basis that it gives them permission to get on with the job.
Dealing With Financial Institutions in England
There’s no easy workaround when it comes to financial institutions. Administering probate correctly in England involves knuckling down to the way they do their business. They hold all the cards. They will not release large funds, or their hold over mortgaged property without probate.
Administering Probate – What Executors Do
It’s best to follow the ‘official process’ if you find yourself in the role of an executor, because this is the simplest way through:
Step One – Register the Death
Unless somebody has already done so, report the death to the local registrar and get a death certificate. You’ll need one before applying for probate, or dealing with financial institutions.
Step Two – Find and Read the Will
Your job is to administer the estate in accordance with the deceased’s will. If they did not leave a will, then the estate goes to their closest relative(s) according to the Intestates’ Estates Act of 1952. These are the only two ways to administer probate correctly in England:
Step Three – The Nuts and Bolts of Probate
- Value the Estate- The value of an estate is the worth of the assets less the debts. Make a list of these. Obtain credible values for all the assets.
- Apply for Probate – Complete an official probate application and send it to the UK government. Include the original death certificate, the original will, and a statement of estate value. You may need to pay inheritance tax if the net value is over the threshold.
Step Four – Administer the Estate
Once you have your grant of probate, you can identify the assets, settle the debts, and sell property if necessary. Then you can distribute the net assets according to the will, or the intestacy rule if there is no will. But this may sound easier than it actually is …
Challenges When Administering Probate
Administering probate correctly in England may involve disputes between heirs, and over the will itself. Examples include:
- A beneficiary or third party challenges the validity of the will.
- A family member or dependent claims reasonable support.
- Joint executors disagree on how to administer the estate.
It can be wise to seek professional legal advice under these circumstances, to avoid unnecessary litigation.
When You Need Help Administering an Estate
A time may come when you need help with administering probate correctly in England. This could especially be the case if the estate is large or complicated, or if disputes arise.
Sorting out inheritance tax can also be tricky if you have to value property and expensive assets. Remember, you are legally responsible for what you do as an executor, including when liaising with the tax office.
Avery Associates helps executors resolve queries regarding:
# The value of fixed property, including land and buildings.
# The worth of valuable items such as antiques and jewellery
# We can also help clear the home of a deceased person’s assets.
That’s three items on your list ticked off, and your task of administering probate correctly in England simpler!
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