Vive Kumar Singh, Author at Probates Online

Key Differences Between Probate Sales and Traditional Real Estate Transactions

Posted on July 17, 2023 by Vive Kumar Singh

It might seem like traditional real estate and probate real estate transactions are similar on the surface, but there are actually crucial differences between the two that you need to be aware of, regardless of whether you are a homebuyer, a seller or an investor. If you reach out to experts who work within real estate, you will be able to develop your knowledge of these differences and as such, navigate the complexities attached to probate properties, helping you make an informed decision surrounding whether you would like to move forward with your purchase. This article is going to talk in more detail about some of the key differences you will find between Probate real estate and traditional real estate, helping you shed light on the unique aspects of both processes and allowing you to better understand how these differences will impact both investors, buyers and sellers.

The Probate Process and the Impact It Has on Real Estate

A probate property refers to a property which forms a part of the probate process. This process is where the assets of a deceased person, which include real estate, are valued and distributed to their heirs and beneficiaries. The probate process can be complex as it involves proving the will is valid, settling any outstanding liabilities and debts that were owed by the deceased and transferring property ownership as well. Contrast this with traditional real estate transactions, which don’t involve the probate process, these usually follow a much more straightforward path from seller to buyer.

Inheritance and Ownership

In probate real estate, property ownership is initially transferred from the estate of the deceased person to their heirs or beneficiaries. Alternatively, they could be sold to a potential buyer, which is established by both will and state laws. Probate requirements need to be satisfied before the transfer of ownership can occur. Alternatively, in traditional real estate, ownership is usually transferred directly from the seller, straight to the buyer through a purchase agreement, without any kind of need for Probate proceedings.

The Condition of the Property and Disclosures

Naturally, before you invest in a property, you are going to want to be thinking about the condition of said property. When it comes to purchasing a probate property, though some inspections might still be carried out before the sale, they are still more than likely going to be sold “as-is”, without any repairs being carried out. Not to mention, because of the nature of the probate process, the executor or the heirs might only have very limited knowledge about the condition of the property, which means there are different disclosures to real estate agents made. This is different to the traditional process, where transactions usually require in-depth inspections, seller disclosures and also well carried out negotiations based entirely on the condition of the property.

Delays and Timelines

When it comes to probate real estate transactions, they can take a lot longer to complete than traditional real estate transactions, given probate deals are affected depending on whether the executor or the administrator has the authority to deal with the property of the deceased. On top of that, the probate process as a whole can introduce a number of different delays, which include the likes of court proceedings and the need to get proper approvals. This is why it is important to work with probate experts who are going to be able to cut down on these specific delays. On the other hand, if you work through a traditional real estate transaction, these tend to follow a much more set and streamlined timeline, which means that closings can happen a lot quicker.

Financing and Considering Various Offers

Financing is different when it comes to traditional real estate and probate real estate. When you are dealing with probate properties, you might require special financing or cash offers because of the unique nature of the challenges that people face when they are dealing with such a property. When you are dealing with traditional real estate, buyers have a much wider range of financing options that they are able to take advantage of and as such, it means that a lot of people tend to go down a traditional route.

Why Go for a Probate Property?

As you can see from the above, purchasing a probate property can be a complicated and elongated process, especially when compared to traditional practices, so why would people go for it? The first and most significant reason is the price. A lot of the time, when it comes to probate properties, those who are selling them are hoping to sell them quickly as they form part of the estate which they are interested in turning into cash as soon as they can. As such, people are happy to take discounts on the offers in order to flip the property as soon as possible. This means they are an excellent option when it comes to people looking for properties that they are able to invest in for a small amount of money and get a larger return on investment.

Some of the other benefits come in the fact that properties are ready to move into. A lot of the time, when people are selling a property which forms part of an estate, the property has previously been lived in, meaning there is not a huge adjustment when people are also moving into the property. There are other benefits as well, all of which mean that though the process can be complex, these properties are still sought after.

Do You Need Help with a Probate Property?

If you are interested in investing in a probate property but you are worried about the process then you should be sure to work with professionals such as Probate Online. Our team will sit down with you to better understand your current situation and advise you on the best way forward. If you have any questions or require any further information then do not hesitate to get in touch.

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Common Challenges Faced in Selling Probate Properties in the UK

Posted on July 12, 2023 by Vive Kumar Singh

When someone passes away there may be a probate property to sell, which can be a complex and time-consuming process. There are challenges that sellers of probate properties face and factors that can complicate the sale.

The Challenges

There are several challenges that sellers of probate properties face, including:

Obtain a Grant of Probate. A Grant of Probate is a legal document that gives the executor of an estate the authority to sell the property. The process of obtaining a Grant of Probate can take several months, and several documents need to be submitted to the Probate Registry.
Value the property. The value of a probate property may be difficult to determine as the property may not have been sold in recent years. The executor may need to obtain a professional valuation to determine the market value of the property.
Market the property. Buyers may be less interested in purchasing a probate property, as there may be legal and financial complications involved. The executor may need to market the property aggressively to attract buyers.
Negotiate the sale. The executor may need to negotiate the sale price of the property with the buyer. The executor may need to be prepared to accept a lower offer than the property’s market value.
Settle the sale. Once the sale is complete, the executor must settle the sale with the buyer, which includes transferring the title to the property and paying any outstanding debts.

The Complications

In addition to these challenges, several other factors can complicate the sale of probate property, such as:

The condition of the property. The property may need repairs or renovations, which can add to the cost of selling the property.
The location of the property. The location of the property may affect its saleability. Properties in less desirable areas may take longer to sell.
The size of the property. Larger properties may be more difficult to sell than smaller properties.

Despite the challenges and potential complications, selling a probate property can be a successful process. By understanding the challenges involved and taking the necessary steps, executors can sell probate properties in a timely and efficient manner.

How to Overcome the Challenges of Selling a Probate Property

There are several things executors can do to overcome the challenges of selling a probate property. These include:

Start the process early. The sooner the executor starts the process of obtaining a Grant of Probate, the sooner the property can be marketed and sold.
Market the property aggressively. The executor should market the property to a wide range of buyers, including cash buyers and investors.
Be prepared to negotiate. The executor may need to consider accepting a lower offer than the property’s market value.
Be patient. Selling a probate property can take time. The executor should be patient and persistent in marketing the property.

And finally… get professional help. An experienced probate solicitor can help the executor navigate the legal and financial complexities of selling a probate property.

Turn to the Experts

If you are an executor of an estate, you might consider selling the property yourself. However, there are reasons why it might be advisable to use a professional to sell a property through probate.

First, a professional will have the experience and knowledge to navigate the legal and financial complexities of selling a probate property. They will be familiar with the probate process and can ensure all the necessary paperwork is completed correctly. They will also be able to advise you on the best way to market the property and negotiate the sale price.

Second, a professional can help you get the best possible price for the property. They will have a network of buyers and will be able to market the property to a wider audience. They will also be able to negotiate on your behalf to get the best possible price.

Third, a professional will save you time and stress. Selling a property through probate can be a time-consuming and stressful process. A professional can complete all the paperwork and negotiations so you can focus on other aspects of the estate. They will be able to provide you with peace of mind knowing that the sale is being handled correctly.

Do You Need Help with Selling a Probate Property?

Selling a probate property can be a complex and time-consuming process, but it is important to remember that it is possible to sell the property and achieve a fair price. If you need help selling a property, at Probates Online we can help. We can list your property with our online property partner who also offers access to an investor and cash buyer database. If you would like more information, do not hesitate to get in touch.

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What Type of Assets are Subject to Probate?

Posted on June 20, 2023 by Vive Kumar Singh

In England, the term probate is used in order to describe both the legal and financial process involved in dealing with the money, possessions and property of someone who has passed away. Throughout this process, the executor of the will has to prove that the will is valid, confirm that they have the authority to administer the estate, settle liabilities and distribute the assets to the correct beneficiaries. Not all assets are subject to probate, it comes down to what that asset actually is and the means by which it was owned by the deceased. This article is going to talk in more detail about the assets which are subject to probate.

Common Misconceptions

There is a common misconception that every asset which is contained within an estate is going to be liable to probate. This is not the case. There are a lot of instances where probate is not necessary for assets, it all comes down to what type of asset it is and how it was owned.

Assets That Don’t Require Probate

So, what are some of the assets that do not require a grant of probate? They include but are not limited to some of the following:

Jointly Held Assets

These are the assets which are held jointly by the deceased and another individual who is still alive. It’s most commonly seen in married couples but that doesn’t always have to be the case. One of the most common instances is a bank account, if a bank account is being held in joint names and then an account holder dies, the account doesn’t form part of the estate and instead the whole thing is transferred over to the surviving account holder. A death certificate is usually required when doing this.

Another common example of a jointly held asset is property. A lot of couples, when buying a house together, will buy it as joint tenants. When this is the case they each own the property jointly and share it. If they are joint tenants then the property simply passes on to the surviving owner. If they were tenants in common then this isn’t the case and the percentage which was owned by the deceased forms part of the estate.

Low Value Assets

If an asset doesn’t have a very high value (usually £500 or less) then a grant of probate isn’t going to be required. You tend to find that different banks and building societies have their own thresholds which vary but a small value probably isn’t going to require any kind of probate.

Assets Which Require Probate

Despite the above, it is common for assets to require probate, meaning whoever is executing the will is going to be responsible for obtaining a grant of probate. This grant of probate is going to be a legal authority which gives the executor of the will the power to sell said asset. Some of the most common assets that require probate include the following:

Assets In the Deceased’s Sole Name

If anything was owned solely by the deceased then it is going to require probate. The most common example of this is the deceased’s property, where if just the deceased owned the property or if it was part of a tenants in common agreement, then a grant of probate will be necessary before it can be sold or transferred. Some of the other common examples of these kinds of assets include the likes of bank accounts, building society accounts, bonds and shares.

Investment Products

There are a variety of different forms that investment products could take which include the likes of an investment portfolio that contains a number of different assets. If this is the case and the executor wants the investment company to pay out to the Estate then it’s more than likely that a grant of probate will be required.

Life Insurance Policies

If the deceased had some kind of life insurance policy in place and had nominated someone in their Will who they would like to benefit from this upon their death then a grant of probate isn’t going to be required. That being said, if the individual had not nominated anybody to benefit from the payout of life insurance then the policy will form part of the estate as a whole, which means that a grant of probate will be required.

Foreign Assets

If the deceased had any assets which were held outside of England and Wales then chances are a grant of probate is going to be required. If this is the case then it is recommended that you seek specialist advice not only for this country but also for the country where the assets are being held. There are likely going to be some strict legal requirements that have to be met when dealing with the asset as there will be tax liabilities and implications from both countries that should be dealt with.

Business Assets

Finally, if the deceased had any kind of business asset within their estate then it is very likely that there is going to have to be a grant of probate required for this asset to be dealt with. Usually, business assets which are relevant in a Will belong to a family business but it can vary on a case-by-case basis.

Do You Need Help with Probate?

If you currently need help with probate then you should be sure to get in touch with experts who are going to be able to assist. The process can be a relatively tricky one and as such it is important that you are on top of things throughout. Probate Online will be able to help you throughout the process and provide you with advice on what the best way forward is. If you have any questions or require any further information about what we can do for you then do not hesitate to get in touch.

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How Are Assets Valued for Inheritance Tax in 2023?

Posted on June 15, 2023 by Vive Kumar Singh

When somebody passes away, their estate is sold and distributed by a nominated executor who is going to be responsible for valuing the assets and selling them in the most appropriate way. The valuation process includes the valuation of everything that the individual owned at the time of their debt, minus any of the outstanding debts that they had.

Why Does an Estate Need to Be Valued?

There are a number of reasons as to why an estate needs to be appropriately valued. These include the following:

The value of the estate is necessary in order to make a proper probate application.
The value will tell you whether or not inheritance tax needs to be paid (and if so, how much needs to be paid).
Certain aspects need to be properly valued to calculate the Capital Gains Tax which is needed on any assets which have increased in value since the deceased’s passing away.
Finally, valuing the estate makes it possible to ensure that all of the necessary debts are going to be paid correctly by the estate and that what can be distributed to the beneficiaries will also be accurate.

The gross value of the estate is the value of all the assets combined. The total value is everything before funeral expenses, mortgages and debts are deducted. The net estate value is the amount left over once liabilities like funeral expenses and debts have been paid prior to any exemptions applied by inheritance tax.

When is an Estate Valued for Probate?

When the executor of the Will is going through the probate process, one of the first things that need to be done is the value of the estate has to be calculated. This is due to the fact a grant of probate needs to be obtained in order for the distribution of assets to take place and a grant cannot be obtained until Inheritance Tax forms have been completed. Naturally, to calculate the value of inheritance tax, the value of the estate needs to be understood.

If Inheritance Tax has to be paid on the estate then this should be done towards the end of a six-month period after the individual has passed away. It can take months to get an estate valued and therefore, it should be done as soon as possible. There are even some instances where you might have to pay tax before the valuing of the estate is even finished.

Valuing the Estate for Inheritance Tax

One of the most important reasons why the value of an estate needs to be accurately calculated is because it will help determine whether or not Inheritance Tax is due and if so, how much Inheritance Tax is due. Every estate has a tax-free allowance, this essentially means that anything under a certain limit (or threshold) will not be subject to Inheritance Tax. Currently, the relevant threshold for an estate to become non-taxable (as set out by HM Revenue & Customs) is £325,000.

There also might be another £175,000 tax-free allowance that people could be eligible for depending on whether they are passing down their home to their children or grandchildren. This specific tax allowance is called the residence nil rate band. There are also a number of different Inheritance Tax exemptions that might be applied, it depends on the estate and also who the estate is being inherited from. For instance, if anything is being left to either a charity or to the deceased’s spouse then this isn’t going to be liable for Inheritance Tax.

Valuing Different Parts of the Estate

Some of the main parts of the estate that need to be valued are the assets which make up the estate as well as lifetime gifts and also liabilities/debts that are owed.

When an asset is valued it has to be done so at an open market value. The open market value is the price that an asset might fetch if it was sold on the market at the time of death. The selling price has to be realistic as opposed to being an insurance value or a replacement value.

The different assets that make up the estate include anything which was owned either solely or in distinct shares by the deceased. It also includes anything which was owed to the deceased such as unpaid wages. Different assets which form the value of the estate include the following:

Leftover money in bank accounts
Land and property
Personal possessions
Business assets

How Is an Estate Valued?

The first thing that needs to be done is a list of all of the deceased’s assets, debts and tax gifts that aren’t exempt from seven years before their death should be prepared. This information isn’t always readily on hand and as such, research is required beforehand so that people can find out the value of different assets.

You should start by going through the paperwork which is available and also speak to family members, professionals and also friends who might be able to help you. Be prepared as chances are you are going to need to prove you have the right authority to request such information as a lot of it is confidential.

Some of the different people and organisations that you need to write to in order to find out more about the deceased’s assets include:

Banks and building societies
Pension providers
The deceased’s employer
Companies that the deceased had shares in
Organisations which are holding assets in a trust
Life insurance providers
Friends and family members

Do You Need Help with Estate Valuation

If you are currently trying to apply for probate and need to pay inheritance tax and need help with valuing an estate, at Probates Online we are able to help. We will sit down and have a look at the estate with you and help to apply for probate and value it. If you have any questions or require any further information then do not hesitate to get in touch.

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The Benefits of Probate Online for Estate Administrators

Posted on May 15, 2023 by Vive Kumar Singh

It’s never easy when a loved one passes away. It’s even more difficult when you have some level of responsibility hanging over you as the administrator or executor of an estate. The process can be made unnecessarily complex for a number of different reasons, making what is already a difficult time even more so. This article is going to talk more about how you can deal with the financial affairs of someone who has passed away and why, if you are an estate administrator, there are benefits to using probate online.

What is the Role of an Estate Executor or Administrator?

Executors and administrators of an Estate are usually appointed through a valid Will or by the Court. When you are the administrator of an estate you have several different responsibilities. These include but are not limited to the following:

Identifying all of the financial documentation which belonged to the person who passed away.
Sending a copy of the death certificate to the different organisations who are responsible for holding money for the individual who has passed away. You will need to ask for official confirmation about how much money is in the specific account that belonged to the deceased. You will also need to ask these companies to freeze the bank accounts so that no money can be taken from them anymore.
You will then need to open a bank account on behalf of the estate that you are acting as the administrator of.
Find out more about what money is owed to the estate.
Find out more about what money is owed by the estate.
Put together a detailed list of the different assets that make up the estate, such as money, possessions and different debts.
Work out how much inheritance tax you owe and then arrange to pay it.
Prepare and send off documents which are required by the probate registry and that HM Revenue and Customs may also need.
Once the probate letters of administration have been granted you will then need to collect the money which belongs to the estate from the bank and other companies that hold the deceased’s funds.
Pay off the debts and expenses which are owed by the deceased.
Share out the remainder of the estate as has been set out in the Will or according to the rules of intestacy.

Probate and Letters of Administration

To carry out the above responsibilities you are going to need to obtain either probate or letters of administration. The one you need will vary depending on whether or not there is a Will in place.

Probate

If there is a valid Will in place then this will name somebody as an executor. If you have been named as an executor then you need to apply for probate. Probate is a legal document which gives you the necessary authority to share out the estate, pay off debts and distribute assets to the relevant parties. You do not always need probate in order to deal with the estate, it depends on the value and the means by which the deceased owned certain assets; however, generally speaking, you will need it.

Letters of Administration

If you are an estate administrator then you need to apply for letters of administration, which is just another term for probate when there hasn’t been a valid Will left by the deceased. Letters of administration are also needed if there are no executors named within the Will or the executors that have been named are not prepared to act.

There are strict rules in place that lay out who can and who can’t be an administrator. If there is a Will in place then you can apply for letters of administration so long as:

The person who has passed away has left all of their estate to you; and
There are no executors in the Will or they cannot be named or are unwilling to act.

On the other hand, if there is no valid Will in place and you are the next of kin then you can apply for letters of administration so long as:

You are married or the civil partner of the person who has died.
You are one of the children of the person who has died.
You are one of the grandchildren of the individual who has passed away.
You’re the parent of the deceased.
You’re a sibling of the deceased.
You are one of the nieces or nephews of the deceased.
You are another relative of the individual who has passed away.

The Benefits of Using Probate Online

As mentioned above, the process of distributing an estate can be complex and applying for probate or letters of administration can simply add to these complications. As such, you should work with probate companies who are going to be able to guide you every step of the way. One of these is Probates Online, which has a team of experts on hand that will be able to assist you with whether or not you need probate or letters of administration and if so, how you can go about obtaining them.

You know you are in safe hands when working with us as we are authorised by the ICAEW to carry out non-contentious probate work. We are also able to prepare the necessary court and HMRC forms that you need when applying for probate or letters of administration and will be able to file these online on your behalf. Finally, when you work with us, our costs are low and fixed so you know exactly what you are going to be paying.

If you need any kind of help with probate then be sure to reach out to us at Probates Online. If you have any questions or require any further information then do not hesitate to get in touch.

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Common Misconceptions About Probate Online and the Truth Behind Them

Posted on May 15, 2023 by Vive Kumar Singh

It’s never easy having someone close to you die, there is a lot that goes through your head and dealing with their passing can take a great deal of time. This process is made even harder thanks to some of the logistical issues that are thrown up when a loved one passes. For instance, if you have been named as the executor in somebody’s Will, then you will be responsible for valuing their estate, settling the necessary outstanding liabilities and distributing the remaining assets accordingly.

One of the things you will need if you have been appointed the executor and want to start completing your duties within the Will is a grant of probate. This can be relatively difficult but there are now websites available such as Probate Online that can help smooth out the process. There are many misconceptions which surround obtaining a grant of probate and also obtaining a grant of probate online. Misconceptions about Probate Online are going to be discussed in more detail below and you must familiarise yourself with them to make the whole process as smooth as it could possibly be.

Why Don’t People Like the Topic of Probate?

Probate tends to be a topic that a lot of people aren’t keen on thinking about. This is because the process is conceived as being complicated and it conjures up different images of Dickensian-style courtrooms, elongated Will readings and complex legal procedures. The reality is actually a lot different. Getting a Will doesn’t need to be a complex process, in fact, these days it is so straightforward that it can be done online. There are a lot of misconceptions surrounding the process and these are going to be discussed in more detail below.

Common Misconceptions

So, what are some of the most common misconceptions about obtaining probate?

It Only Refers to a Single Thing

There tends to be a lot of confusion surrounding what probate actually is in the first place. This is fair enough given the world refers to two different things, which are:

A grant of probate; and
The entire process needed to wind up an estate, from the initial assessment, valuation and selling of assets.

A grant of probate is a document that you, as an executor, will need to obtain which proves that you have the legal authority to administer an estate. You can apply for one of these online on Probates Online, where experts will be happy to guide you through the process and make obtaining your grant as simple as possible.

You Always Need Probate

There are a lot of situations where it is going to be necessary for you to apply for a grant of probate, but that doesn’t mean that this is necessarily going to be the case all of the time. The same applies for working online, even though the process becomes simpler, that doesn’t mean that you necessarily need to do it when distributing every kind of estate. Some of the circumstances in which you might be able to administer an estate without worrying about applying for probate include:

The assets which belong to the estate are owned jointly with somebody who is still alive.
There isn’t any property owned by the estate.
The total amount of money contained within the estate is relatively small and banks and building societies have indicated that they will be able to release said funds without seeing a grant of probate.

It’s worth noting that if there is property contained within the estate then you are definitely going to need to apply for a grant of probate. You are also going to need to apply for probate if the bank or building society where the deceased keeps money has indicated that it is going to be necessary to do so. This is the case even if the money contained within these accounts is relatively small, the decision is the banks and this varies depending on which one you’re working with.

There’s No Need to Obtain Probate If There is a Will in Place

It doesn’t matter whether or not there has been a Will left for the estate, though this will impact certain parts of the administration process, obtaining probate isn’t one of them. You need to apply for probate regardless of whether or not there is a valid Will in place. If there isn’t a Will then the only difference will be that the Grant of Probate will be referred to as Letters of Administration, which do the same thing.

Anybody Can Apply for Probate Online

Only certain people have the right to administer an estate and as such, this means that only certain people have the right to apply for Probate as well. This is the case if you apply physically and if you apply online. There is a common misconception that anybody can apply for probate online but this is simply not the case. The only people who have the ability to apply for probate are people who have been named in the Will as an executor.

Alternatively, if a valid Will has not been left then there are still specific rules which impact who can apply for letters of administration. The closest relative to the deceased should be the only one who can apply for Letters of Administration.

Why You Should Use Probates Online

As can be seen above, the process of obtaining probate can be complex, in small part thanks to the number of misconceptions that surround it. As such, you should consider working with experts who are going to be able to guide you along the way, such as those at Probates Online. Our team will discuss your situation with you and provide advice on the best way that you can move forward. If you have any questions or require any further information then do not hesitate to get in touch and we will be able to help.

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How to Avoid Inheritance Affecting Benefits in the UK?

Posted on April 17, 2023 by Vive Kumar Singh

If you inherit some money or property or other assets once a loved one passes away, and you are on benefits, then these benefits may well be affected. It all comes down to what kind of benefits you claim and how much you have in your savings; some won’t be affected at all, but then there could be an impact for others. Throughout this article, we will talk in more detail about how your inheritance could affect the benefits you claim and whether there is anything you can do to avoid such an impact.

Have You Received Inheritance Whilst on Benefits?

The reason why different benefits can be affected by you receiving an inheritance is that many of them are means-tested. This means that once the income or savings you have exceeds a specific threshold, the benefits you receive will either reduce or cease altogether. The different means-tested benefits that will be affected by your inheritance include the following:

Universal Credit
Employment and Support Allowance
Income Support
Housing Benefits
Pension Credit
Working Tax Credit
Council Tax Support
Child Tax Credit

If you have received any kind of inheritance, you need to let the Department of Work and Pensions (DWP) know if your savings have increased. If not, there could be serious ramifications, including a fine and a potential prison sentence. On top of that, it could be the case that you cannot claim further benefits for up to 3 years.

What Makes Up Your Savings?

Given that your savings greatly impact whether or not your benefits will be affected by your inheritance, you should calculate your current savings. Savings are classed as money you can get hold of easily or any kind of financial product you could sell quickly. These include the following examples:

Cash Savings: Fairly self-explanatory; cash savings are any savings in your bank account or building society account. They also include any other type of account that pays you interest.
Investments: Your investments are a saving product that gives you a return on your money; these include stocks and shares within an ISA or a unit trust.
Repayments on Your Mortgage: Your mortgage repayment includes any money you pay every month to reduce the amount of your overall mortgage loan, for instance, if you have some kind of flexible mortgage.
Premium Bonds: Your premium bonds consist of national savings and investment products that pay out various prizes instead of paying interest.
Rent Payments: This is money you pay monthly to live in somebody else’s property.
Council Tax Payment: This is the amount of money you pay yearly to help you cover the costs of any council tax payment.
Other Regular Bills: These vary from person to person, but some of the most common include utility bills, mobile phone contracts and car insurance.

What Are the Savings Limits on Different Benefits?

Different types of benefits have different savings limits attached to them. Means-tested benefits have a lower capital limit of £6000 and an upper limit of £16,000. This limit is commonly referred to as a Savings Credit threshold.

Universal Credit

If you (or your partner) have less than £6000 in income or savings, then your ability to claim these benefits will not be affected. That being said, if you and your partner have savings that come to more than £16000, you can’t claim Universal Credit at all.

Housing Benefits

If you have reached the State Pension age, then the £6000 limit doesn’t apply to you unless you also claim housing benefits with somebody under the State Pension age. If you are over the State Pension limit, you can have up to £10,000 in savings before the housing benefit is affected. After that, for every £500 over the limit will count as £1 weekly income. Finally, if you claim pension credit, you can save up to £16,000 before any claim to your benefits is affected.

Tax Credits

Your tax credits are not affected by your savings as they are based on the amount you have earned in previous years rather than what you are making now.

Pension Credit

Your overall capital will not affect your Pension Credit unless you have over £10,000 in assets. If you have over £10,000 in assets, then for each £500 you will be considered to have an income of £1 a week. This will be added to other forms of income, which will impact your pension.

What If You Inherit a House Whilst on Benefits?

If you don’t inherit money but instead inherit a property, this isn’t likely going to affect your benefits; however, it’s more likely that you will pay inheritance tax. There are several different ways that you can try to avoid paying inheritance tax, but the fact is that if the value of the estate goes above the nil rate band, inheritance tax will be due.

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Applying for Probate Online in the UK: How to Avoid Delays

Posted on April 7, 2023 by Vive Kumar Singh

There are several different things that need to be done when a loved one passes away. If you have been left in charge of executing the will, you will already know that one of those things is obtaining probate. This can be tricky for many reasons; however, one of the main ones is that there are several different circumstances that can lead to delays. Throughout this article, we will discuss the probate process in more detail and provide information on how to effectively avoid delays.

What is Probate?

Probate is the process of administering the estate of a deceased person. This means that you will be responsible for organising their money, as well as their possessions and assets, before distributing them as an inheritance (once you have settled all liabilities and taxes of said deceased person). If the deceased has left a Will, it will likely name the person they would like to be in charge of administering their estate. This person is known as the executor, and it will be up to them to obtain a grant of probate.

What is a Grant of Probate?

Before starting the process, the executor will need to apply for a grant of probate. This legal document will give them the authority necessary to deal with the property and other assets of the deceased. As soon as all of the debts and taxes have been paid, the inheritance will be passed on, and once this is done, probate ends.

Applying for Probate

The probate process is relatively simple in theory, especially if you work with online organisations that will assist in obtaining said probate. The basic process includes the following steps:

Gather all of the details of the estates, assets and debts
Apply for the initial grant of probate (which will give you permission to administer the estate and pass out all of the inheritance)
Complete a tax return for inheritance tax and then pay off any of the tax which is due
You should then receive your grant of probate
Once you have your grant you will be in a position to repay the outstanding debts of the deceased
Distribute the rest of the estate as per the conditions laid out in the will

How Long Does Probate Take?

The process as a whole will usually take about a year; however, this all depends on the size and complexity of the deceased’s estate. International probate is relatively complicated, and then there are also often disputes which arise between the executor, creditors and beneficiaries. These (amongst other things) can lead to delays in the overall process.

Recent Delays in the Probate Service

Delays have become more frequent recently, much to many people’s annoyance. Some of the main reasons behind these delays are that, throughout the past 18 months or so, the way the probate service operates has been changing so it can better suit the needs of its users. These changes include creating a new style of probate certificate and allowing legal professionals to access an online probate service for 24 hours every day.

Whilst these changes sound good, as of this year, there has been an increase in the delays experienced by people applying for probate. This is thanks to a migration to a new back-office system, resulting in the loss of several days worth of working time.

Staff need to learn how to use the new system, and there has been an increase in the number of people applying for probate. There has been about a 50% increase in requests, which has led to delays across the country.

Current Waiting Times

The delays mean that the waiting time for a grant of probate is longer than people are used to. HMCTS has confirmed that these times are roughly six to eight weeks. However, there are exceptions to this rule, with several applications taking even longer than that. These delays can be attributed to missing documents, procedural defects or the need for further information.

What Can You Do to Avoid Delays?

If you need to apply for probate and want to limit these delays as much as possible, then you will be happy knowing you can do plenty to avoid them. HMCTS is working hard to limit the backlog and has provided advice for people to follow that might help them reduce waiting times and subsequent delays in grants as much as possible. Some of these include:

Ensuring that you are providing the form for inheritance tax when you initially submit your application
Double-checking all the different names that are on the application form to check that they are the same as the names in the will
Ensure the executors are accounted for
Making sure the statement of truth is signed
Making sure all of the different forms are signed
Sending the correct fee

Do You Need Help Applying for Probate?

If you are trying to apply for probate and need some help, then you will be happy to know that at Probates Online, we can assist over the internet. Simply reach out, and our team of experts will be able to help you move forward in a way that will avoid delays. If you have any questions or require further information, do not hesitate to get in touch.

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How to Find the Best Offer on Probate Properties in the United Kingdom

Posted on March 9, 2023 by Vive Kumar Singh

A lot of people purchase properties in the interest of living in them and having somewhere that they can call home. That being said, this isn’t always the case, as many individuals will consider buying a property as a form of investment. If you have ever thought about doing this and looked into it, then chances are you will have heard about purchasing properties on probate. Doing this can be a good call as you can save some money, and the transaction can be done quickly and easily. So, how do you find some of the best offer on Probate Properties in the UK? This is going to be covered in more detail below.

Finding a Probate Property

First things first, you need to know different points of contact where you will be able to locate different probate properties. These are:

Your Local Real Estate Agent

You will have estate agents local to you who specialise in probate properties, so it’s a good idea to reach out to them and see if anything has come up. Give them a call, and let them know what kind of property you are looking for and what budget you are working with. Having an estate agent you can work with is beneficial, given they will contact you as soon as somewhere becomes available, meaning you can make an offer quickly and get a good deal.

Search for Different Online Listings

There are a number of different websites online that specialise in probate properties and as such, you should browse and find the right websites which show places in your area. They are advertised in the same way as any other home, so you can find them on popular real estate sites too, but if you want to narrow your search, then be sure to include the word “probate” when looking at listings. If you want to get a good deal, then look for homes that were listed more recently; if they were, then they are unlikely going to have any offers already made against them.

Check the Court’s Website

Another option available to you is to check on the probate court’s website, as they usually have probate properties on there. Search “probate court” and then include the area you would like your property to be in. These homes typically go for sale in auctions which are open to the public. All auctions will be listed on the website. The properties can go for cheap on these websites, but the auctions happen quickly, so you need to be on the ball as you won’t have a lot of time to do your research.

Do a Walkthrough of the Property You’re Interested In

If you have found a property that you’re interested in and you have time to do so, you should ask the relevant agent if you are able to do a walkthrough of the property. These homes usually need some work, so look out for this and weigh up whether or not the repairs necessary make economic sense. You will likely need to update and remodel the property; that’s a given, but just make sure they are updates that will be affordable and worth it. You should note that you don’t always get the option to do a walk-through of a probate property, so if this is the case, then ask for plenty of pictures of the inside, and outside of the property so you know exactly what you’re buying. If the pictures don’t give a clear reflection of the property, then you might want to have a look for something elsewhere.

How Can You Make an Offer on a Probate Property?

So, once you have found the property which you are most interested in, how can you make an offer on it? The truth is, there are a few different ways, which include:

Make an Offer to an Estate Representative

Once you have had a good look at a property and are happy that you want to go through with the purchase, simply make an offer to the estate representative. You will need to submit this offer in writing, or if you have an agent working on your behalf, then they will be able to submit the offer for you. If the offer is accepted, then the agent will file a petition with the court to notify them of as much, and a hearing will be set for about a month after that petition is filed.

Pay 10% Cash Deposit

You are expected to put down a cash deposit as soon as the offer is accepted. This is a good way to guarantee the sale is going ahead and is one of the reasons why the sale of probate properties goes through so quickly. Keep in mind that even if you have a contract with the owners, the judge still has to approve the sale itself. This sets buying probate properties apart.

Attend the Court Hearing

When an offer is accepted, that doesn’t mean that the house is necessarily yours. A probate judge will need to approve the sale before the property becomes your own. On top of that, the probate hearing is a good chance for others who are interested in the property to outbid you. This is known as the overbid process, and it works in the same way as an auction. It’s worth noting that if you haven’t made an offer, you can still attend the hearing and place bids, but you likely won’t get the best deal if you do this.

Do You Need Help with Probate Properties?

If you need some assistance with purchasing probate properties then you will be happy to hear that there are different sites out there which can assist. If you work with us at Probates Online we can provide advice on where to look for different properties and provide information on the process. If you have any questions or would like any further information, then do not hesitate to get in touch.

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How to Transfer Property to Your Spouse After Death in 2023

Posted on February 28, 2023 by Vive Kumar Singh

Once somebody passes away, there will be either an executor or administrator appointed who will be responsible for dealing with the distribution of their assets. This person will be responsible for paying off any taxes and liabilities owed by the deceased and distributing the remainder of their estate as per the terms specified in their will or laid out in the rules of intestacy.

Will it Be an Executor or an Administrator?

Whether it is an executor or an administrator who deals with the estate will vary depending on whether or not the deceased has left a valid will. If there is a valid will, the person who deals with it will be called an executor. If there isn’t a will, the person dealing with it will be an administrator. They both have the same role; the only difference is that the executor is named in the will and, therefore, specifically chosen by the deceased, whereas the administrator can be appointed by the court and asked to deal with a deceased person’s estate.

Accessing Money, Property and Any Other Assets in the Estate

If the deceased has left a lot behind, then naturally, the executor or the administrator will need to get access to these different parts of the estate so that they can be sold or transferred to the necessary people. To do this, they will need to apply for either a grant of representation or a grant of probate. If there is a valid will, the Probate Registry will grant probate of the will. On the other hand, if the will is invalid or there is no will, the probate registry will need to use a grant of letters of administration instead.

Transferring Property After Death

One of the most common assets to be dealt with after an individual has passed away is their property. Often, a property will be sold to settle different liabilities and tax obligations; however, the property may also be transferred to the deceased’s spouse or children.

The process involved in this transfer depends on who is responsible for it and how the property was owned. As such, the first thing to establish before anything can be transferred is whether or not the deceased was the joint or the sole owner.

A Sole Owner

The whole process is straightforward if the property is in the sole name of the individual who has passed away and is registered at the land registry. The executor or administrator handling the estate will need to transfer the property to whoever is entitled. If a will has been left that specifies the spouse, it will go to them. If there is no will, if the deceased and their spouse lived in the property together, it will go to them.

For a property to be successfully transferred to a beneficiary, the executor or the administrator has to submit a document called ‘Assent.’ This is submitted to the Land Registry, who will then transfer the property into the new owner’s name.

The grant of probate or the letters of administration, obtained at an earlier date, also need to be sent to the Land Registry. This is because these will tell them who is authorised for the property transfer. If the property is not being transferred but will be sold, the same needs to happen, as these documents give authority to the person who will be transferring the property to the new buyers.

A Joint Owner

When the deceased of a property was the joint owner, this can sometimes be a bit more tricky, although not necessarily when transferring to a spouse. There are two ways a property can be jointly owned: as tenants in common or joint tenants.

Joint Tenants

When joint tenants own the property, nobody owns a specific part of the property. This is quite common for spouses as they often buy a property together and own it jointly. If this is the case, the transfer is easy as, upon the individual’s death, the surviving joint owner will automatically inherit the rest of the property.

To successfully transfer the property to the surviving joint owner, the death certificate must be filed with the Land Registry. The Land Registry will then be in a position to update the title to reflect who now owns the property.

Tenants in Common

If the property is owned as tenants in common then each owner has a specific share assigned to them. Most of the time, this share is 50%, but that can vary depending on who paid what into the property or how many tenants in common there are.

The surviving joint owner(s) is the person in a position to deal with the transfer of the property that the deceased previously owned. As such, there is no need for the Land Registry to see any kind of grant of representation for the property.

Do You Need Assistance with the Transfer of Property?

There can be a lot of complications involved when you are responsible for dealing with the estate of a loved one. You need to get permission to deal with different aspects of the estate and ensure you are transferring assets in line with how they are owned. If you need assistance, then at Probates Online, we can assist you every step of the way. If you have any questions about dealing with a deceased’s estate or need further information, do not hesitate to get in touch.

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