Vive Kumar Singh – Page 3 – Probates Online

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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Do I need a Property Valuation for Probate?

Posted on January 30, 2023 by Vive Kumar Singh

When somebody passes away, the executor is responsible for obtaining what is known as a “grant of representation”, otherwise known as “probate.” This is necessary because by obtaining this, the executor is proving that they have the legal right to deal with the deceased’s estate. To get probate, the entire estate of the deceased needs to be valued, which means working out how much they have in their bank, what their possessions are worth and also getting their property valued. This has to be done even if the Will’s beneficiaries do not intend to sell the property.

The Definition of ‘House Value’

For the purposes of probate, the house’s value is defined as what it would be worth on the open market. Essentially, on the date of transfer, whatever a reasonable buyer is likely to pay for the property will be considered the house value. If there are any peculiarities, these need to be ignored. For instance, imagine there is a buyer who is desperate to live on the street and, as such, is willing to pay well over the asking price; whilst this could happen in theory, it cannot be taken into account when valuing the property. The transfer will be considered the day the deceased died; however, if they have given the property away within the past seven years, the transfer date will instead be the day that the gift was made.

Who is Responsible for Getting the Property Valued?

When it comes to working out the value of a property, it is the responsibility of the deceased’s representatives (i.e. their executors and administrators) to see to this. They will need to ensure that the value they assign to the property is accurate for probate purposes because the value of the property (and subsequently the value of the estate) will all contribute to the inheritance tax the beneficiaries must pay. These representatives will need to get a valuation for everything else that makes up the deceased’s estate, which includes vehicles, furniture, personal belongings and financial assets.

How Can You Get a Straightforward Valuation?

If the property is standard construction and in an area where there are a lot of similar properties, then working out the value is relatively easy. HM Revenue and Customs would advise you to check the prices advertised by local estate agents for houses and flats of a similar size in the surrounding area. Good websites that you can have a look at include Rightmove and Zoopla, which can provide details about recent sale prices and, as such, point you in the right direction.

Another option is to ask different estate agents to help you value the property. If you do this, you will want to get an average figure rather than just going on one estate agent’s word. This means getting about three different estate agents to provide you with a value, adding all those values together and dividing them by three. This will give you a reliable average figure that you can use to assign value to the property.

The Problem with Some Estate Agents

It is worth noting that a lot of estate agents will give you a suggested asking price. This is not a market price, which is fair, but one that they would sell at. When you think about selling a house, negotiations are always involved, which means that estate agents list properties high, allowing themselves wiggle room to go down in negotiations. If you were to use these figures you would get an inflated probation value, meaning the beneficiaries of the Will could become liable to pay more inheritance tax than was necessary. If you are looking to avoid this, ask the agent to provide the price they would expect the property to sell at, not the price at which they would list the property.

Should You Get a Surveyor’s Valuation?

You don’t always need to get a surveyor’s valuation. However, if the property is of non-standard construction, the only one of its type, or difficult to assign a value given no houses have been sold in that area for a while, a surveyor’s valuation could be helpful. They will visit the property to consider the area, the property itself, and its potential and will then be able to provide a reasonable valuation.

If the property needs work done or has a large plot of land, you will also need to get a surveyor’s opinion. When you submit the value of the property (and the entire estate) to HMRC, they will be much more comfortable accepting the figures proposed by a professional.

Do You Need Help Obtaining Probate?

If you have been left in charge of somebody’s Will before you can begin paying off liabilities or ensuring assets are given to the correct beneficiaries, you must obtain probate. In doing this, you must have a fair value of the deceased’s estate. This means you have to know what their belongings are worth and all their other assets.

If you need assistance with any of this, you should reach out to Probates Online. Our team of experts will be able to help you assign value to the deceased’s estate, as well as obtain probate for the distribution of the estate. If you have any questions or would like any further information on what Probates Online can do for your business, then do not hesitate to get in touch.

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Legacy Income Predicted to Reach £5billion in 2030 in the UK

Posted on January 17, 2023 by Vive Kumar Singh

When people pass away, a lot of them leave a will behind. Granted, there are some that don’t as they are under the misunderstanding that they are not necessary or are not important, but the fact is, you can achieve a great deal with your Will if you put it together and give it to beneficiaries who you think are deserving. The majority of people will ensure their assets pass down to close friends and family members; however, a large number of people also donate to different charities. This is where legacy income comes in.

What is Legacy Income?

When someone leaves a gift in their will, this is not only the last donation they will ever give, but it is also likely to be the most meaningful. It can help a number of different charities, and this is why fundraisers are so keen on leaving a legacy whenever they discuss the donor journey in a bit more detail.

It is a vital income source for many charities as it provides them with the ability to access different funds that will help them achieve their goals and help those they set out to help. It is a heart-warming way for individuals to say thank you to charities that have done something for them or that mean a lot to them.

How Much is Raised in Legacy Income?

You can clearly see just how important legacy income is to charities when you begin to acknowledge how much they raise every year. There has currently been about £3billion raised by legacy income. To put that figure into context, it’s the equivalent of eight Children in Need campaigns.

Local health charities have indicated that around 50% of the voluntary income that they raise is the product of legacy giving. On average, people donate a figure between £3000 to £30,000 for legacy income. This means that they have the chance to increase the income of a charity by a significant amount, even if only a small percentage of each gift is donated.

When is Income from Legacy Recognised?

There can often be issues surrounding charities recognising when a donation has come from legacy income. There are now criteria in place, thanks to the Statement of Recommended Practice (SORP), that outline when income from legacies will be recognised. The criteria is as follows:

Entitlement: To meet the criteria of entitlement, control over the rights and other access to different economic benefits of the legacy need to be passed over to the charity.
Probable: This means that it is likely the economic benefits which accompany the transaction are going to be passed down to the charity.
Measurement: The value of the income is able to be measured in a reliable way, as can the costs which are incurred when receiving the legacy.

It is worth noting that the criteria of entitlement cannot be met until the benefactor passes away. This is why legacy income is usually left in somebody’s will.

Legacy Income is Increasing

In recent news, it has been confirmed that the amount which is getting left in legacy income is increasing and predicted to reach a total of around £5billion by 2030. There have already been record numbers obtained in 2021 and 2022 (as discussed above), and with the trajectory that donations are going on, this is only likely to increase.

Legacy foresight has predicted that the overall income from legacy is likely going to be worth £19.6million between now and 2025. On top of that, it is estimated to reach £23billion in the second half of the decade. This means that charities will have subsequently received the £5billion in legacy income from a different 146,000 bequests.

Explaining the Upward Trend

When you consider the history of legacy income, there has been an upward trend in place since the 90s, with donations growing by about £800million in total. This has led to an annual growth rate of 4.5% for the year.

When you consider inflation, income across the UK is up by 2.7% a year, meaning the actual value of gifts in wills throughout the UK to different charities has doubled throughout the last 30 years. Pair this with the fact that more people are donating to charity in their will, with bequests rising by about 50% in recent years. The upward trend and estimated total of £5billion is not unrealistic.

The Impact of the Baby Boomer Generation

According to Legacy Foresight, another large contributing factor towards the increased figures of Legacy Income is the baby boomer generation. This generation consists of people who were born between 1946 and 1964 during the post-WW2 baby boom. This generation has a wealth and lifestyle that, on average, exceeds that of others. This has resulted in an increase in donations and means that by the year 2050, the amount of legacy income could double.

About 40% of all deaths in the UK have a Will, and a further 16% of those wills contain charitable donations. On average, each Will has about 3.3% charitable gifts contained within, with about 38% of charitable wills containing one charitable bequest and then 28% containing over four.

What Charities Are Benefitting the Most?

With the increased figures, all charities around the UK are benefitting; however, there are some sub-sectors that have seen a large amount of growth in the past few years. These include air ambulances, arts and education charities, mental health charities, NHS hospitals and wildlife trusts.

Do You Need Assistance with Your Will?

If you are putting together your Will and are interested in leaving charitable gifts, then you should be sure that you are asking for help to ensure everything is valid and legal. At Probates Online, our team of experts are on hand to assist you with all of the different aspects of putting together a Will. If you require assistance or have further questions, please do not hesitate to get in touch.

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Grant of Probate Delays Continue to Rise in the UK, Why?

Posted on December 30, 2022 by Vive Kumar Singh

Families out there who are attempting to administer the estate of a loved one continue to be faced with frequent delays with their applications for a Grant of Probate. A recent article published by STEP reported that around 23,572 applications were received in January by the HM Courts and Tribunal Service. This is a massive increase compared to the previous month, which only saw 18,275 applications. That increased trajectory continues and is just one of the factors which are leading to delays in issuing grants of probate.

What is Probate?

Probate is common in England and Wales when someone passes away, and their family need to deal with the administration of their estate. Probate is the word used in order to describe the financial and legal process surrounding property, possessions and money for a person who has passed away.

Probate is the process necessary to prove that a will is valid. It also proves who is officially authorised to administer the estate of the individual who has died. Before anything can be done with the assets that make up the estate of the deceased, the next of kin or executor will need to apply for a grant of probate.

What is a Grant of Probate

A grant of probate is the official legal document which is assigned to the executor so that they can access bank accounts, settle debts and sell the assets of someone who has passed away. It should be noted that this document is only referred to as a grant of probate when someone leaves a will; otherwise, it is referred to as a grant of letters of administration. Both of these documents work in a very similar way to one another.

Once probate has been granted, it means that whoever was left in charge of the will is able to deal with the deceased person’s assets. If there has been a will left, then this process is much more straightforward as the will is going to lay out where everything should go and who should benefit from what assets.

The Probate Process

A lot of tax, financial and legal work goes into the probate process. The steps necessary include the following:

Phase 1: The first thing to do is identify all of the deceased’s assets. All of the liabilities and debts which are owed by the deceased also need to be properly worked out. Steps also need to be taken in order to work out who is entitled to inherit what as per the terms laid out in the will.
Phase 2: Inheritance tax needs to be paid to HMRC wherever it is applicable. Afterwards, an application to the Probate Registry will be made for the grant of representation, which is a document outlining who has the legal authority to administer the estate.
Phase 3: Once the grant of representation has been assigned, whoever is administering the estate is going to be responsible for liquidating different assets and settling the liabilities of the deceased. Accounting for HMRC and expenses for administration and accounting should also be settled.
Phase 4: The estate accounts need to be prepared so that all payments can be made into and out of the estate. This will reveal the balance left and, subsequently, what is going to be sent out to the beneficiaries.
Phase 5: So long as there aren’t any complicating factors that will get in the way of the distribution, the final phase of the process involves simply transferring different assets to the beneficiaries.

Why Are There Delays for Grants of Probate?

As discussed above, there are an increasing number of applications made for a grant of probate, and naturally, the process is delayed following such an increase. That being said, there are other factors that can also lead to a delay in the grant of the probate application process. Some of the most common causes of delays include the following:

Missing Documents: A lot of the time, delays tend to be caused when the documents needed to support the application aren’t submitted at the same time as the application.
Missing Information About Inheritance Tax (IHT): As discussed throughout the process above, inheritance tax needs to be paid before the application can officially be approved. As such, the forms for inheritance tax need to be filled in and submitted 20 days before the application is made. If this isn’t done, then it could lead to undue delays.
Missing Executors: The whole point of getting a grant of probate is so that executors are able to start settling debts and distributing work to beneficiaries; as such, information about the executors needs to be available when the application is made. If this isn’t done, then it could cause delays as the court will need to find out information about who the executor is.
Questions About the Condition of the Will: There are a number of laws and restrictions put in place in order to make sure that a Will is legitimate. As such, in order to lessen the risk of fraud as much as possible, if there are any stains on a will, staple holes, tears or pages missing, these could all be questioned, slowing down the process.
An Inability to Locate the Will: Wills should be registered because this means that they are easier to find. If there are problems locating a will after someone’s death, then it could slow down the process for a grant of probate.

Do You Need Help with Applying for Probate?

As can be seen above, there is a lot that goes into applying for a grant of probate and a number of factors can slow the process down. If you want to speed up your application as much as possible and cut out complications, then be sure to reach out to Probates Online. Our team of experts will be able to help you with your application. If you require any further information, then do not hesitate to get in touch.

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Frequently Asked Questions About Probate in the United Kingdom

Posted on September 27, 2022 by Vive Kumar Singh

People tend to have a number of different questions surrounding probate in the United Kingdom, the application process and whether or not it is necessary. Below, we will be answering some of the most frequently asked questions about probate, which will hopefully help you understand probate in a bit more detail.

For more in-depth information, be sure to get in touch with experts such as our team at Probates Online.

What is Probate?

Probate is the name which is given to the legal process involved in dealing with the estate of somebody who has passed away. There are a number of different steps which are involved in probate, and these include the likes of getting control of the estate, working out and paying the inheritance tax, which is due and also correctly distributing the assets contained within the deceased’s estate. Whoever is put in charge of the individual’s will and subsequently probate is known as the executor (these will be specified within the will). If there isn’t a will in place, then the individual in charge is called the administrator.

What is the Process Involved for Probate?

The process of probate can vary depending on what your situation is but generally speaking, it involves the following steps:

Make an application for a grant of probate/letters of administration in order to get control over the estate.
Have someone look over the estate and get it valued.
Work out how much inheritance tax is due on the estate and pay that amount to HMRC.
Sell any assets from the estate that need to be disposed of (this includes property).
Pay off any debts that were owed by the deceased (these include the likes of energy bills and loans)
Prepare estate accounts in order to show any money that has been spent from the account and paid in taxes, as well as the remaining balance.
Distribute the remaining assets contained within the estate to the beneficiaries that have been named in the will (or as per the rules of intestacy if there isn’t a will in place).

How Much Does Probate Cost?

The cost of probate depends entirely on the circumstances; this includes what assets are included within the estate and if any specific issues need to be resolved. There are a number of different organisations out there that will be able to help with applying for probate, so it may be worth reaching out to a specialist in order to get the most for your money as you possibly can.

Do You Need Probate If You Have a Small Estate?

There are a couple of different reasons why probate may not be necessary, and this can depend on the likes of what kind of ownership individuals have over their property and also how much the estate is worth. If the estate is dealt with once everything has been valued, is worth less than £5000, or the deceased has left their entire estate to either their civil partner or spouse, then probate is not going to be necessary. It is always worth checking this with experts in order to avoid any potential legal complications moving forward.

How Long Does Probate Take?

There are a number of different variables that can impact how long it takes for probate to be completed. In some instances, everything can be wrapped up in as quick as 6 – 9 months. That being said, there are a lot of factors that can make it so this period is longer; it all depends on how much the estate is worth and how complicated it will be to value and distribute it. If there is property involved, then this needs to be sold, and if you are doing this at a particularly poor time in the market, then it can take a lot longer than you would like.

Is There a Time Limit for Probate?

There isn’t a time limit for completing the probate process. The only deadline or imposed time limit that you need to think about is for inheritance tax. This is that any tax which is due from the estate has to be paid within six months of the death of the individual. If you have concerns that the probate process is taking too long because the executor or the administrator isn’t carrying out their duties as well as they should be, then you are able to have them replaced. It is worth noting the circumstances under which you can do this are limited, so if you intend on taking this course of action, then you should be sure to get some legal advice.

What Are My Duties as an Executor?

If you have been appointed as the executor of the will, then you may well be wondering what your duties are. They can vary depending on what the estate consists of but generally speaking, you will need to:

Obtain the grant of probate
Collect all of the assets that are included within the estate
Be responsible for having the entire estate valued
Pay any inheritance tax which is owed on the estate
Pay off any debts that are outstanding on the estate (such as energy or other types of bills)
Distribute all of the assets that are part of the estate to the correct beneficiaries as specified within the will

Speak to an Expert

When someone passes away, there is a lot that needs to be done with their estate, which can naturally confuse many people. Above are some of the most commonly asked questions when it comes to probate, but if you need more assistance, then it may be worth enlisting the help of Probates Online. At Probates Online, we have a team of experts on hand who are willing to help guide you through the probate process. If you have any questions or would like to get any more information on how we will be able to assist, then do not hesitate to get in touch.

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