Vive Kumar Singh, Author at Probates Online

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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How to Deal with the Financial Affairs of Someone Who Has Died

Posted on September 19, 2022 by Vive Kumar Singh

When someone dies, everything that they owned upon their death is known as their estate. Their estate can be made up of a number of different things, but some of the most common elements include:

Their Money: This includes cash and money that they had in their bank or building society account. It might also include money that has been paid out in their life insurance policy.
Money Owed: This includes any money that, upon the time of death people owed to the deceased.
Shares: Any shares in businesses or other investments are included in the estate.
Property: This could be the home that they lived in, properties they rented out or commercial properties.
Personal Possessions: There are a number of items that could be included here, such as family heirlooms, their car or jewellery.

Money could be taken out of the estate as well. This includes money that the deceased owed someone else, for instance, to pay off their debit and credit cards, rental payments and for fuel.

Once all of the estates have been collated, it is usually then passed on to one of their surviving relatives or friends to deal with. This could be done because of instructions that the deceased laid out in their will. Alternatively, if there wasn’t a will left behind, then people would be appointed as per the rules of intestacy.

Who Deals with the Estate?

The person who ends up dealing with a person’s estate will be either the executor or the administrator. The executor is somebody who will be named in the will as being responsible for the estate. They need to apply for special legal authority before they are able to deal with the estate, this is called probate.

An administrator is slightly different as they are only responsible for dealing with the deceased’s estate under certain circumstances. For instance, if there isn’t a will in place or the executors who are named in a will aren’t willing to act. If an administrator is in charge of the estate, then they are going to have to apply for letters of administration before they are able to do anything.

There are a few exceptions, but generally speaking, if you are going to start sharing out the estate or try to get money from the estate, then it is against the law to do so until you have probate and letters of administration.

The Role of the Executor and Administrator

There are a number of different roles that the executor and the administrator are responsible for. These include the following:

Finding and putting together all financial documentation for the deceased.
Sending a copy of the death certificate to any of the organisations that hold money for the individual that’s passed away.
Opening a bank account which is set up on behalf of the estate.
Finding out the details of what money is currently owed to the estate.
Finding out the details of what money the person who died owed.
Working out inheritance tax and making arrangements for payment.
Paying debts, expenses and any other fees surrounding the individuals’ death.
Sharing out the estate to the necessary beneficiaries as has been laid out in the will.

Benefits and Tax

After someone passes away, it is important that their benefits, tax and national insurance are all sorted out as soon as possible. The deceased might have a tax that they need to pay, but on the other hand, they may well have a tax which is owed to them and their estate. After someone has died in order to work out whether they owed or were owed anything, the tax office and each government office is going to need to be informed about this person’s death as soon as possible.

If the deceased was on any form of benefits or allowance, then the Department of Work and Pensions (DWP) will also need to be notified. The best way to do this is by phoning the DP Bereavement Service, as they should be able to deal with everything. They are also going to be able to assess the benefits in question and work out whether or not the next of kin is owed the same.

Debts

The individual that has died might have left some kind of debt behind; it is important that these are paid from the estate. You will need to get in touch with the individual creditors. One of the best ways to do this is by placing a notice in the Gazette because this will inform different creditors that they can make a claim for their debt against the estate. If you fail to do this and some creditors come forward, then you may well be responsible to pay off the rest of the debt with your own money.

Probate and Letters of Administration

Depending on whether you are an executor or an administrator, you will need to apply for probate or letters of administration.

Probate

If you are the executor, you will need to apply for probate. This is a legal document which gives you the ability to share out the deceased’s estate. Probate is not always necessary to deal with the estate as it depends on what kind of ownership the deceased had on their assets and how much the estate ends up being worth, be sure to speak with experts to check whether probate is required. You should also note that if you have been named as the executor, then you are under no obligation to act if you don’t want to.

Letters of Administration

Sometimes, letters of administration will be required over probate. These are going to be necessary if

There hasn’t been a will left
There is a will, but it isn’t valid
There have not been any executors named within the will
There are executors named within the will, but they are unable or unwilling to act

Do You Need Help Dealing with Financial Affairs?

Dealing with the financial affairs of somebody who has passed away can be difficult, and as such, it may well be the case that you would like to enlist the help of some professionals. At Probates Online, we have a team of experts on hand who are going to be able to help you deal with the estate of your loved one, pay off the necessary debts and ensure everything is distributed accordingly. If you have any questions or want further information, do not hesitate to get in touch.

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What is a Grant of Confirmation & How Does it Work?

Posted on September 12, 2022 by Vive Kumar Singh

When you lose a loved one, this can be a very difficult time. What can make it even harder is that if you were particularly close with the individual, a lot of the time, you don’t even have a chance to mourn as you need to deal with their assets. Doing this can be a challenge, especially if the deceased had large sums of money or property. If this is the case then it is likely you’re going to end up having banks and investment companies that insist on seeing Confirmation before releasing whatever sums they have to the beneficiaries of the estate. This won’t often be required but in case it is, this article will talk about it in more detail as well as how it works.

What Is a Grant of Confirmation?

Confirmation is a legal document which authorises the executor of a will to begin administering the estate of the deceased. If you require confirmation, this is granted by the Sheriff Court as soon as any inheritance tax that needs to be paid. When you apply for confirmation you’re going to need to send off the will of the deceased.

What if There Isn’t a Will?

A lot of people pass away and don’t leave behind a Will. If this happens, then it means that there isn’t an executor laid out, and as such, one needs to be appointed before a grant of confirmation can be issued. It is also often the case that a Bond of Caution needs to be issued too, which is an insurance policy which will protect the executor if they distribute the estate incorrectly.

What Needs to Be Included in the Application for a Grant of Confirmation?

When you are attempting to get a grant of confirmation, the process involves filling out an application. The specifics of this process are going to vary depending on the value of the deceased’s estate. Regardless of whether or not there is an inheritance tax that needs to be paid, a full collation of all of the inventory of the estate will have to be done. This inventory cannot be brief, and there will have to be valuations in it, as well as confirmation of the date that those valuations were made. Essentially, a run-down of everything the individual owned at the time of death needs to be put together. When this has been done it is a lot easier to understand whether the deceased had a large or a small estate.

When all of this inventory has been put together, the executor of the will is going to need to sign and approve the necessary forms that have been put together by HMRC. These are either going to be filed to the Sheriff Court or to HMRC, depending on whether or not there is any inheritance tax due on the estate.

Do I Need Assistance When Obtaining a Grant of Confirmation?

The short answer is no, you don’t need formal assistance when it comes to obtaining a grant of confirmation. That being said, it may well be the case that you want to enlist the help of some professionals because of the fact obtaining a grant of confirmation can be quite a tricky and intricate process, which you probably don’t want to go through alone once you have lost a loved one. You might be able to get the assistance of Sheriff Clerks as well depending on the value of the estate but this isn’t always the case.

Confirmation in Small Estates

If the total sum of the estate ends up coming to less than or equal to £36,000 then this is when a Sheriff Clerk is going to be able to assist you. They will assist by providing a helping hand with putting together all of the inventory necessary to apply for a grant of confirmation. Even though they will provide assistance, the process can still be reasonably daunting, and as such, if you would like guidance that is more hands-on and less clerical, then it could still be worth getting in touch with someone.

Confirmation in Large Estates

If you have an estate that exceeds £36,000 then the official recommendation of the Court is to seek legal advice. You should keep in mind that this is only a recommendation, but that doesn’t mean it isn’t important that experts have some kind of say in your application process for a grant of confirmation. Again, if you are processing the death of a loved one, then dealing with large sums of money on your own probably isn’t the best thing, and you might have better peace of mind if you ask for help in distributing the estate to the correct beneficiaries.

What Happens Once a Grant of Confirmation Has Been Obtained?

Once you have finally received your grant of confirmation, the deceased’s belongings are finally able to be released. This means the executor of the will can distribute them in line with whatever was laid out in the Will (or whatever the relevant laws state if no Will was left).

Administration work will also then begin, which involves the likes of paying off debts, working out what is owed to which beneficiaries and sorting out inheritance tax (if it has to be paid). These steps are all relatively complex which again is why it could be worth seeking the help of experts.

Do You Need Assistance with Administering an Estate?

If you currently find yourself in the position where you need some help with administering an estate, then it could be worth speaking to us at Probates Online. Our team of experts will be able to help you with any query that you may have to make the whole process easier. If you would like further advice or have any questions whatsoever then do not hesitate to get in touch.

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Can I Sell the Deceased’s Home Before Receiving a Grant of Probate?

Posted on August 30, 2022 by Vive Kumar Singh

When an individual dies, an executor is appointed to take care of all of their belongings and ensure the beneficiaries of the will receive the assets that they are due. A lot of assets need to go into probate. Whether they do or not will depend on whether they were jointly owned and also the value of these assets.

What Is Probate?

Probate is essentially the process which is involved in dealing with the money, property and possessions of a person who has passed away. Probate can apply regardless of whether there is a valid will in place or not. Before any of the beneficiaries of a will or the next of kin if there is no will in place, can claim, sell or transfer any of the assets that have been left to them, they might have to apply for what is known as a grant of probate.

What is a Grant of Probate?

A grant of probate is something which is needed before executors are able to access the deceased’s bank accounts, sell assets or settle any kind of debts that have been incurred. It is worth noting that the document in question is only ever referred to as a grant of probate if the deceased left a valid will; if they didn’t, then the document is known as a grant of letters of administration. Though they have different names, they both work in similar ways as they give a person legal authority to deal with the estate of the deceased.

Once probate has been granted, the next of kin of the executor of the will is in a position where they are able to begin dealing with the assets of the deceased. If there is a will then chances are it will lay out how all of these different assets should be distributed. If the person died and they didn’t have a will, then a law has been established that clearly sets out who should receive what.

Can You Sell the Deceased’s Property Without a Grant of Probate

Usually, the executor of a will is going to look to sell the deceased’s property because the funds raised as a result can be used as a means to pay off any debts that the deceased had outstanding at the time of death. Afterwards, these assets can then be passed on to the beneficiaries of the estate. It is no surprise the executor would want to sell the property as quick as possible and, therefore might not love the idea of having to wait to receive a grant of probate. So, is there anything they can do in the meantime?

The good news is that you are able to put a property up for sale before probate has been granted. The bad news is that though you can put it up for sale, you are unable to complete that sale until the grant of probate has been issued by the registry. This can naturally be an issue for both the buyer and the seller due to the fact that managing to get probate can be a reasonably long process.

What Should You Do If You Are Selling a Property on Probate?

If you are an executor or have been granted the letters of administration, then it is down to you to ensure that the estate is managed in an efficient manner. In order to complete any property sale, you would need a grant of probate/letters of administration.

As the executor, you are going to need to have knowledge of how much the property is worth, as this will result in you being able to calculate the value of the estate (this is important because it helps the beneficiaries know what kind of inheritance tax they will have to pay). This is why it makes sense for people to get the property on the market before probate is granted because in doing so, they will have a ballpark figure of what they’re likely to get for it. The revenue office will usually expect the executor to make more than one valuation; therefore, they would normally get around three.

It’s important to get these valuations in because, with an average estate, the value of the property usually forms a huge part of it. If there is work that you would like to do on the property before putting it on the market, then this should be carried out as soon as possible. Work includes giving the property a good clean and having an air out. You also might want to add a fresh touch of paint and even bring in some flowers to brighten the place up.

You are able to agree to a sale before you have received a grant of probate, and then once you have applied for and gotten a grant, you are going to be in a position to exchange contracts with the buyer. Once this is done, they are legally obliged to buy the property and are unable to pull out of the sale without incurring further fees.

Selling a Property Without a Grant of Probate

When someone passes away, their estate is taken care of by an executor who will need to sell off assets in order to pay off the debts of the deceased before the remaining assets are then passed on to the beneficiaries or the next of kin. A lot of the deceased’s assets (depending on ownership and value) will need to go into probate. To do this, a grant of probate is required.

Obtaining a grant of probate can sometimes take a while and as such, a lot of executors want to sell the deceased’s property before it is received. It is possible to put a property on the market before getting a grant of probate; however, until the grant is received, the sale cannot be completed.

If you are hoping to get a grant of probate as soon as possible, then you may want to consider getting one online. Probates online are on hand to help you obtain probate quickly. If you would like our assistance, please do not hesitate to get in touch.

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Do I Need Probate if I have a Will?

Posted on August 19, 2022 by Vive Kumar Singh

There seems to be an assumption that probate is not needed on their loved one’s estate if there is a will in place; however, the fact is this makes no difference. Whether or not there is a will, probate may still be needed. There is no catch-all answer as to whether it is necessary or not. Probate refers to the process of someone being granted permission and named as the legal authority to wind up the affairs of a deceased person. The document that grants this is known as the Grant of Probate if there is a will, and the Grant of Letters of Administration if there isn’t one. These documents essentially work in the same way.

As such, when people say whether or not probate is needed, the above is what they’re referring to.

When is Probate Required?

Whether or not probate is required will depend entirely on:

How assets are being held, which will be either in joint names or in the sole name of the deceased
How much the assets are worth

Joint or Sole Ownership of Assets

One of the best places to start when you are working out whether or not Probate is required is to make a list of all the assets owned by the deceased. After you have your list, run through it and determine whether assets were held solely or jointly.

When you have assets that are jointly owned, they can be held in one of two different ways:

Joint Tenants
Tenants in Common

If assets are held as a joint tenant with an individual who is still alive, then that asset will automatically pass to the co-owner as per the Right of Survivorship. Probate is not required if this method is used for the deceased’s assets.

When an asset is held as a tenant in common, it will not pass down by the right of survivorship. Instead, they will pass to whoever will inherit them as per the deceased’s will (or, if there isn’t a will, the Rules of Intestacy). There’s a chance that probate will be required for these assets, but it depends on their value and who is inheriting them.

If the assets in question were solely owned by the deceased, their value must be determined. If the value of a particular asset is more than the probate threshold (see below), then probate is needed to sell or transfer the assets.

If you are struggling with working out whether or not you need probate for the above, then you may want to visit Probates Online, which will be able to assist with the process.

Asset Value

Even in circumstances where the deceased person owned an asset in their sole name, probate may not be necessary if the asset’s value is low. This is because most banks and financial institutions are happy to release funds held by the deceased if they were worth less than £5000. This is a general rule, but every bank makes a minimum probate threshold at their discretion, so it is worth checking their position on the matter.

If the assets fall under this threshold, then the deceased has what is known as a Small Estate, and in these circumstances, probate isn’t necessary. It can be difficult to figure out what will be considered a small estate as every bank will have its limitations.

If it turns out that the deceased owned assets worth more than the threshold, then you will need to go through the probate process. Chances are if an individual owned a property, then this will fall over the probate threshold, and therefore, probate will be necessary.

Is There a Valid Will?

Whether or not there is a valid will in place will have no impact on whether probate is required. That being said, you still need to find out whether or not there is a will in place; this is because a will is going to name the executors, and the executors will be responsible for distributing the estate. If the executor named in the will decides they would not like to take on the role, then a priority order is established that confirms who can apply.

If there is no valid will in place, there is a law established within England and Wales that determines who the beneficiaries are. These laws are called the Rules of Intestacy and will determine who should be in charge of administering the Estate.

Is Probate Necessary if there is a Will in Place?

There seems to be a common misconception that having a valid will in place will affect whether or not the assets of a deceased person will go into probate. This isn’t the case, and the circumstances surrounding whether or not assets will go into probate are whether they were in a joint name and how much they are worth.

There are some instances where, if an asset is held in joint names, it will simply pass to the co-owner. In other circumstances, the deceased’s share will pass to their beneficiaries; if this happens probate may be needed.

The estate’s value also determines probate; if it is not worth very much, then it won’t be necessary; however, if it exceeds the probate threshold, it will be.

If you have any questions about probate, whether it’s necessary and what your next steps should be, then do not hesitate to contact probates online. Our team of specialists are on hand to assist with any and every query you may have, so do not hesitate to contact us.

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Procedure for Grant of Probate for Tenants in Common

Posted on August 18, 2022 by Vive Kumar Singh

When a joint tenant dies, the deceased’s share of the property automatically passes to the surviving tenant. Known as Right of Survivorship, there is no need to apply for a Grant of Probate in these circumstances. However, if one owns a share of a property as a tenant in common, if one of the owners dies, their share does not automatically pass to the remaining co-owners. What happens to that share largely depends on whether they left a will or not. Either way, a Grant of Probate for tenants in common will be required in order to administer the estate of the deceased, including their share of the co-owned property.

What do we mean by tenants in common?

Under a tenants in common agreement, each individual person owns a share of the property, but it doesn’t need to be equal shares. How much of a share each person owns could be broken down by who put the most money into the property or, if buying with family, a parent might own 50% of the property but their two children a share of 25% each.

In most cases, when friends are buying a property together or families help their children get on the property ladder, a tenants in common agreement will be used. It is different from a joint tenancy in that each owner is allowed to sell their share of the property or leave their share to anybody in their will. It is also possible for one owner to mortgage their share of the property, but that is rare, principally because most mortgage lenders would be unwilling to lend on this basis.

However, certain clauses that can be written into the agreement can state no owner is allowed to sell without giving the first refusal to the other owners, or they have the option to ‘vet’ any potential new owners. If this clause isn’t in the agreement and an owner decides to sell their share, the remaining co-owners are entitled to file a petition action with the court which asks the court to sell the property via a court order and the proceeds of the sale are distributed equally among all the owners.

The agreement should include who is responsible for paying the mortgage and other bills, although in most cases, a joint account is set up, and each owner pays their share of the outgoings into this account. However, as tenants in common, there are a number of legal rights for each owner:

The tenant in common owner can’t be forced to leave the property without a court order.
None of the other tenants in common owners can sell the entire property without every owner’s agreement or court order.
No additional loans can be taken out against the property without every tenant in common owner’s agreement.

However, it is possible to add owners at a later date and include their names on the property’s title deeds.

Grant of Probate for tenants in common

So, let’s look at it in more detail. Firstly, let’s give you some examples of situations where a property is owned by tenants in common.

Parents and their children – often, parents help their children get on the property ladder by investing in a property with them and will own the property together with a tenants in common agreement.
Business partners – a tenants in common arrangement works well if either business partner wishes to pass on their share in the property to a family member, such as their spouse and/or children.
Co-habitees – couples living together may want to protect their share of the property should the relationship not continue or if they want to leave their share of the property to someone other than their co-habitee on their death.
Married couples with children from a previous relationship – to ensure children from a previous relationship don’t miss out on any inheritance, a tenants in common agreement is put in place so that each co-owner can leave their share of the property to their own children. However, in this situation, it is a good idea to ensure the new spouse has the right to live in the property until their death, i.e. a life interest.

When a property is owned by a tenants in common agreement, there are two situations when a co-owner of a property dies; they either left their share to another party in their will, or they didn’t leave a will and therefore the Rules of Intestacy with regards to inheritance applies. The one point to remember is that with tenants in common, a co-owner’s share of the property does not automatically pass to the other co-owners because there is no Right of Survivorship with this type of ownership.

If the deceased made a will, it is highly likely they will have stated who inherits their share of the property. In some cases, they may have made another co-owner a beneficiary or even named all other co-owners to receive an equal share. Alternatively, they may have left their share to a family member or another beneficiary.

If they didn’t make a will, the Rules of Intestacy are applied, and their share of the property will pass to the deceased’s nearest living relatives. If there are no living relatives to receive the inheritance, it will pass to the Crown.

Whether there is a will or not, either the executors, if there is a will or a close family member will be required to apply for a Grant of Probate. This is because it is highly likely that the value of their share of the property will exceed the £10,000 limit of probate not being required.

Declaration of Trust

In many tenants in common situations, it is advisable to get a Declaration of Trust drawn up, which details what share of the property each owner has. This document should also list who pays for what in terms of outgoings, such as bills, mortgage and maintenance. It can also be used should a co-owner decide to sell their share of the property, whether they can do that with or without the consent of the other owners, or if one of the co-owners wishes to sublet their share. When parents are contributing to the purchase of a property for their children, such as paying the deposit, it is a good way to ensure they get their money back.

At Probates Online, we offer a will writing service or a Complete Estate Service to help you through the probate process and estate administration upon the death of a loved one. If you are looking for advice on inheritance tax, gifts or trusts, or need to apply for Grant of Probate, Letters of Administration or would like to take advantage of our entire Estate Administration service, visit our website for more information or contact us today.

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How much does Grant of Probate Cost in 2022?

Posted on August 2, 2022 by Vive Kumar Singh

When someone dies, their family or executors must apply for a Grant of Probate or Letters of Administration, depending on whether there is a will or not. Probate is the legal process that any deceased person’s estate goes through, whether there is a will or not.

The size of the deceased’s estate and whether the deceased left a will usually determine how long the probate process takes. But what is the Grant of Probate cost?

What is probate?

Probate is the legal process by which an estate is divided after someone has died, including financial and physical assets, such as property, and how it is distributed to the named beneficiaries.

Generally, if the deceased left a will that details who is going to inherit what in terms of money, property or any other assets, the probate process can take up to 12 months to complete. This really does depend on the size of the estate. However, if there isn’t a will, probate can take much longer. What will delay the process further is if there are any disputes between the beneficiaries or over the administration of the estate, which is known as contentious probate.

However, there are cases where probate is not required:

If the estate is worth less than £10,000 and there are no shares or land as part of the estate. If the estate is particularly small and there is only a token amount in a bank account, the bank has the discretion to make the decision whether they need a Grant of Probate to release the funds.
If any money, i.e. bank accounts or property, is owned jointly with a spouse or civil partner.

In reality, the threshold for probate ranges from £5,000 to £50,000. Each bank or financial institution has its own policies regarding a deceased person’s assets.

If there is a will, executors will have been named and appointed; it is their job to administer the estate and apply for a Grant of Probate. The executor can be a family member, a friend of the deceased or the solicitor that holds the will, but it’s better if they are not a beneficiary. If there is no will or executors, someone representing the deceased will need to apply to the court for the authority to administer the deceased’s estate. This is usually the next of kin, and they will need to apply for ‘letters of administration’.

There are other circumstances where letters of administration are required:

You have been left the entire estate;
There are no executors named in the will;
The executors are not prepared to accept the role.

Only the executors of the estate can apply for a Grant of Probate. If there is no executor of the estate, a next of kin or a close relative has to apply for letters of administration in order to handle the deceased’s estate; they are known as the administrator of the estate, not an executor.

What is a Grant of Probate?

Grant of Probate is the official authorisation from the court that allows the executor(s) named by the deceased in their will to administer their estate. This includes having the assets valued to assess the amount of Inheritance Tax (IHT) due to be paid, finalising the deceased’s accounts and distributing assets to beneficiaries according to the deceased’s will.

Letters of Administration are the same as a Grant of Probate but for the deceased’s estates that do not have a will. The next of kin is granted the authorisation to administer the estate in the same way an executor would do so.

Applying for Grant of Probate Online

Launched in 2017, the online probate service makes it far easier for executors, solicitors and family members of the deceased to apply for a grant of probate, saving time on many of the legal processes. However, you will still be required to send original copies of the relevant paperwork, including the death certificate and the deceased’s will to the Probate Service. But the statement of truth can be made online – executors no longer have to visit the probate office to swear their oath. In addition, the grant of probate cost can be done electronically, too.

The legal profession can also apply for intestacy or grant of letters of administration as part of a will annexed application. It is also possible to stop a grant of probate from being issued, known as a caveat, through the online probate service, if necessary.

The online probate service allows executors, administrators and solicitors to view their probate applications and forms on a dashboard, as well as monitor the process of their probate application. According to MyHMCTS, the only documentation that needs to be sent to them is the original will, a copy of the death certificate and the Inheritance Tax forms.

Grant of Probate cost

To use the online probate service, a Pay By Account (PBA) account will need to be opened, which links you with MyHMCTS’s fee account system, where you can pay for your online probate application. Once registered as an executor or administrator, you will be able to start your online probate application.

Once you have had the deceased’s assets – property and possessions – valued and reported to HMRC, you can apply for a grant of probate online. The current fee is £215, and it can be paid online through MyHMCTS’s when you submit your application. If the value of the estate is lower than £5,000, MyHMCTS waives this fee.

It is advisable to order extra copies of your grant of probate as they will be needed during the process of administering the deceased’s estate. There is a cost for this as well, which is currently 50p per copy.

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