Property means different things to different people in the popular vernacular. However under English probate law, the term refers to the things we possess. That ownership follows us to the grave, so to speak. This brings us around to property and the matter of probate.
Our heirs – and who knows His Majesty’s Revenue Collection – may be champing at the bit for their share of the action some day. This is why we recommend leaving a valid last will and testament behind. That way, somebody we choose will have the legal right to deal with our fixed property, money and other possessions.
Probate and The Legal Disposal of Property
Probate is the legitimate right to decide what happens to a deceased person’s possessions, subject to their legal will. The term comes down to us from the Latin word probare, meaning to test or prove something. If you were an executor of a deceased estate, you would need a Grant of Probate to prove your authority.
In fact, to nail down the point, you could not to anything legal without that document. Although, if you were lucky, you might be able to obtain an exemption, and proceed directly to implementing the will.
If there were no legal will, then the English Law of Intestacy would apply, although this would not get you around property and the matter of probate.
Applying for Probate or Letters of Administration
Not all deceased estates with legal wills require letters of probate. Much the same applies to intestate estates without wills, except their probate permissions are called ‘letters of administration’. The processes for applying for either of these are similar as we describe below:
STEP ONE – DOES THE ESTATE NEED PROBATE?
Begin by establishing the overall worth of the estate in broad terms. The deceased’s bankers should provide a good start. A quick internet search of HM Land Registry records should indicate whether they owned any land or buildings. Property and the matter of probate are intertwined, and we have to consider both.
In broad terms you may not need probate permission, or letters of administration if one or more of the following is true:
- The deceased only had savings in a bank or a building society account.
- They jointly owned money or shares which pass to the surviving owner(s).
- The same logic applies if they owned land or property as joint tenants.
STEP TWO – DO YOU QUALIFY TO APPLY FOR PROBATE
Only a limited number of people may apply for probate in England. If the deceased left a legal will, then that would have to be the executor nominated therein. However, if there is no legal will, then the closest living relative may apply for letters of administration.
STEP THREE – IS THERE ANY INHERITANCE TAX DUE?
An application for probate (or letters of administration) must include an estimate of the value of the estate. You will need this, even if you believe the estate value is below the minimum.
No inheritance tax is normally due below the threshold value, although there are sometimes exceptions. Generally speaking, though:
- Inheritance tax is not due,if the value of the estate is proven to be below the £325,000.
- Or if the amount over this goes to a spouse, partner,charity, or community amateur sports club
Estimating an Estate and Property for Probate
Your estimate needs to be comprehensive this time, and include any land, permanent and temporary structures, personal possessions, and financial investments. Follow this check list to make sure you identified them all:
- Anything the deceased owned at the time of their death, bearing the above in mind.
- Any gifts they donated in the seven years before they died, such as cash or items of worth.
- The value of any trusts in which the deceased person held a beneficial interest.
Find a Professional Valuer for Inheritance Tax
Your estimate when applying for probate or letters of administration, only needs to be an approximation. However, when it is time to submit your return to His Majesty’s Revenue Collection, then you do need to be spot-on to avoid unnecessary delays.
Avery Associates offers a comprehensive valuation service to clients in Greater London and South East England. Our offerings include, but are not limited to:
- Land and building valuations by qualified, experienced RICS valuers in good standing.
- Assessment of antiques, artworks and other collectibles by acknowledged experts.
- Written reports for insurance companies, probate purposes and tax officials.
Please contact us via one of these media if you would like to know more. We are proud of our reputation, and we would love to add you to our list of satisfied clients.
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