Vive Kumar Singh, Author at Probates Online

What Is the Process to Obtain Grant of Probate or Letters of Administration?

Posted on December 27, 2021 by Vive Kumar Singh

When someone dies, whether there is a will or not, the executor of the will or a family member will need to apply to the court for Grant of Probate or Letters of Administration. This gives them the authority to handle the deceased’s estate including all the necessary financial and property aspects.

However, sometimes probate must be applied for, in some cases it is not needed and in other circumstances, Letters of Administration will be required instead of probate. So, what is the process to obtain a Grant of Probate or Letters of Administration?

When is probate necessary?

First, let’s just clarify when probate is necessary. The general rule is that if the value of the deceased’s estate is more than £5,000, Grant of Probate is required.

If there is a will, it is the appointed executor’s role to apply for probate but if there is no will or executor, the next of kin or a family member representing the deceased will need to apply for Letters of Administration. This grants them the authority to handle the deceased’s estate and they will be called the administrator.

Other circumstances where Letters of Administration are required are:

● One person has been left the entire estate;
● There are no executors named in the will;
● The named executors are not prepared to accept the role.

Only an executor of the estate can apply for a Grant of Probate. If there is no executor, the next of kin or a close relative must apply for Letters of Administration in order to manage the deceased’s estate.

When is probate not necessary?

Let’s quickly explain when you don’t need to apply for a Grant of Probate. As a rule, if the majority of the deceased’s estate is jointly owned with their living spouse or civil partner, such as joint bank accounts or a mortgage, they may not need to apply for Grant of Probate. Other circumstances when probate is not necessary are:

● The estate is valued at 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 as to whether they need Grant of Probate to release the funds.
● If any money, i.e. bank accounts, or property are owned jointly with a living spouse or civil partner.

The process to obtain Grant of Probate or Letters of Administration

Once the death has been registered (which must be within five days), applications for Grant of Probate must be submitted to the court within six months. This is not because there is a time limit on applying for probate; it is because there is a time limit on paying HMRC any Inheritance Tax that may be due. In practice, reporting the estate’s value to HMRC and applying for probate is usually done at the same time, as both are needed to finalise the deceased’s estate.

Whether there is a will or not, the process to obtain a Grant of Probate or Letters of Administration is similar. The first step is to itemise the deceased’s estate and calculate its value. This will include any money in their bank or building society accounts, the value of the deceased’s belongings and any property held in the deceased’s name (even if it is in joint names, the value still needs to be ascertained). You will need to consider:

● Bank accounts, pension funds and any other financial assets, such as mortgage on a property, savings and life assurance policies
● Any property, whether in joint names or not, will need to be valued by a local estate agent. It is always worth getting three to four valuations.
● Any outstanding debts, such as utilities, mortgage payments, credit cards, loans or any other monies owed by the deceased
● Any gifts the deceased made that are above the official allowance within the previous seven years (not including Christmas, birthday or anniversary gifts) – they may be subject to Inheritance Tax.

In most cases, you will need a copy of the death certificate and/or will be sent
to the relevant organisations.

Applying for probate can either be done through a solicitor, particularly if a solicitor holds the deceased’s will, a family solicitor, or you can file for probate yourself online. If there is a will, you will need the following to apply for probate:

● An official copy of the death certificate (if applying online, this will be a scanned image);
● The original will;
● The application fee.

One thing to note is that you can only apply for probate online if:

● All the named executors are alive and able to make decisions; and
● The deceased spent most of their life in England and Wales.

The actual process to obtain Grant of Probate or Letters of Administration is:

● Register the death to receive the death certificate
● Advise beneficiaries and notify the companies the deceased dealt with, including banks, insurance companies, mortgage providers and utility providers. Ask them to close the deceased’s account, stop any additional charges and send a final statement.
● Submit Grant of Probate or Letters of Administration forms along with HMRC’s inheritance tax forms. All of these forms can be submitted online but you will need to send some original documents, such as the will and death certificate.
● Pay inheritance tax to HMRC, if applicable. In most cases, surviving spouses/civil partners or family members will need to get a loan to cover this cost until the deceased’s estate has released the assets.
● Pay any outstanding debt, such as utility bills, credit card balances, loans or mortgages. If there aren’t sufficient funds to cover these costs, discuss with the creditor to arrange a repayment agreement.
● If there’s life insurance, now’s the time to claim as this may be enough to cover any outstanding debts and funeral costs
● Allocate the estate’s assets to the beneficiaries according to the deceased’s wishes, if they left any, otherwise equally.

If there is no will, the next of kin or a close relative of the deceased will need to apply for Letters of Administration which you can do yourself via post using the form PA1A, which is a probate application form. This can be downloaded from an online probate service or from a probate registry near you.

At Probates Online, we are able to offer a professional probate service online that is efficient and affordable. If you are an Executor of a will and 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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Why Use an Estate Planning Lawyer to Make a Will?

Posted on December 15, 2021 by Vive Kumar Singh

Some people don’t need to worry about making a will, such as young adults with no children or assets, just yet; however, a large proportion of people in the UK not only need to make a will but also need to consider estate planning lawyer if they have a number of valuable assets.

Whether your estate is reasonably straightforward or more complex, such as an extensive property portfolio of assets in foreign countries, using an estate planning lawyer enables you to incorporate several aspects pertaining to your estate under one roof.

What is estate planning?

There are several aspects to estate planning, including making a will, which incorporates every aspect of planning who gets what, where, and when upon your death, as well as who makes decisions on your behalf, if required during your lifetime. Let’s look at the different aspects of estate planning:

Making a will – a will is a legal document that lists all your assets and their relative value, states your beneficiaries and what you have decided they will receive upon your death.
Powers of Attorney (POA) – a POA gives permission to a person of your choice to make certain decisions on your behalf should you be in the position of losing your mental capacity to make the decisions yourself or will be out of the country for a long period of time, or you are seriously ill for any reason. However, there are three forms of POA:

A continuing power of attorney gives permission regarding your property assets and financial matters.
A welfare power of attorney is only used when you do not have the mental capacity to make decisions on your medical care or about the treatment you receive, and even about where you live.
A combined power of attorney brings together the above two POAs so the person of your choice can make decisions about your financial matters as well as about welfare and health.

Planning business succession – if you run a business, an estate planning lawyer will help you plan the running of the business when you want to retire or upon your death, including:
- Who takes over the business’s operations?
- Where do the business’s profits go, i.e. equally to beneficiaries or reinvested back into the business?
- Does your death impact a partnership agreement?
- If you’ve appointed an executor, are they experienced in selling a business?
Trusts – a trust is a method to manage your finances and assets for your beneficiaries, and they can help reduce the impact of inheritance tax and capital gains tax.

What’s included in your will?

There are four forms of wills – simple, joint, living, and testamentary trust – which one you choose largely depends on your circumstances and your estate. Whilst there are also handwritten wills and oral wills, known as ‘nuncupative’ wills, let’s look at the four main types.

Simple will – the most common, a simple will is the choice of many people. It details your assets, who will receive them, names guardians for your children under the age of sixteen. A simple will often forms the basis of other wills.
Joint will – also known as mirror wills, they are signed by more than one person but culminate in separate wills for each testator. They are usually made by spouses where the executor, beneficiaries and other matters are the same. The drawback of joint wills is that should the surviving spouse’s wishes change, they can’t change the joint will.
Living will – this type of will isn’t to do with distributing your estate on your death but is to do with your wishes should you become incapacitated. Similar to POAs, you can specify who will make decisions on your behalf and what your wishes are should something happen to you.
Testamentary trust – this type of will puts certain assets into a trust, such as property, for your beneficiaries to benefit at a later date, i.e. minor children. You will need to name the trust’s trustees – the people who will manage the trust – in the testamentary trust will.

Before you carry out any estate planning or make a will, you will need to take an inventory of your assets. An estate planning lawyer will be able to help you with this task and review your assets to work out the most tax-efficient way in which to pass on your assets to your beneficiaries.

Your will needs to include:

Physical property, such as buildings and land.
Intangible property, such as stocks and shares, bonds, patents and copyrights, intellectual property and businesses owned, or any interest in a business that you have – you will need to specify who will take over your part of the business.
Unproductive property of value, such as jewellery, artwork, cars and furniture.
Cash, including money in your bank accounts and savings accounts. Don’t forget that your spouse and family will require cash to pay any outstanding debts as well as taxes upon your death.

However, there are some things that shouldn’t be included in your will, such as:

Property that is held as a joint tenancy, i.e. a property that is jointly owned with someone else. The reason is that the property will transfer for the other joint owner automatically.
Any insurance policies, trusts or other retirement plans that already state a beneficiary. However, it is possible to change your beneficiary, or beneficiaries, on any of these, as well as pensions and life assurance policies.
Any stocks, shares or bonds that are already set up to transfer to someone else upon your death.
Digital assets are also not included in wills, at the moment, so cryptocurrencies may be a difficult asset to place in a will. However, an estate planning lawyer will be able to advise you accordingly.

The more concise and accurate your estate planning and will be, the smoother the transition for your family and beneficiaries.

At Probates Online, we offer a professional probate service online that is efficient and affordable. If you are an Executor of a will or close relative of a deceased person, and you need to apply for a Grant of Probate 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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Should I Use a Last Will or a Living Trust to Distribute My Estate?

Posted on November 30, 2021 by Vive Kumar Singh

Even if you didn’t think a will was important in the past, the last 18 months of Covid-19 will undoubtedly have changed your mind! But the other topic that’s being discussed at length is trusts. Both are legal documents that detail how you want your assets to be distributed but there is a fundamental difference between a trust and a will.

Whilst estate planning via a will is vitally important, a trust could be just as beneficial, if not more so; or, indeed, combining the two may be the ultimate solution. So, to help you decide whether you need a will, a trust or both, let’s clarify what a will is, what a trust is, and how they may be beneficial for you.

What is a last will?

A last will details your wishes and who benefits from assets and/or property, i.e. your estate, after you die. In the majority of cases, you will appoint an executor, or executors, in your will and it is their job to manage your estate upon your death, including selling any property, paying outstanding bills, as well as dealing with HMRC to pay any inheritance tax due. One thing to point out; before you assign an executor(s) to your will, make sure you have asked that person, or persons, if they are happy to take on the role as it is demanding and involves a lot of paperwork!

You are only allowed to include any assets or property that you own, i.e. they are in your name only. So, if the property you live in is jointly owned with your spouse or partner, it will automatically revert to them upon your death.

What is a living trust?

A living trust is a form of will in which your beneficiaries will benefit from your property and/or assets but while you are still alive. You appoint trustees to oversee the management of the trust and hold legal title to the assets defined in the trust upon your death. There are a number of reasons why you may choose a trust over a will, including:

● You’d like your beneficiaries to benefit from your assets while you are alive, i.e. paying school fees
● You want to protect your property and/or assets from paying less, or no, inheritance tax
● Your beneficiary is not able to fully benefit from your assets as they are incapacitated.

Differences between a last will and a living trust

The main difference between a last will and a trust is that a will only comes into force when you die, whilst a trust can start to benefit your chosen beneficiaries while you are still alive.

The main benefits of a will over a trust is that you can name guardians for any minor children, appoint an executor to handle your estate upon your death to relieve the burden from your loved ones, and detail your final wishes.

Just because there is a last will doesn’t mean the executors of your will don’t have to apply for probate. If your estate is valued at more than £5,000 in total, they must apply for probate. If there are very few or no assets in your estate and its value is less than the £5,000 benchmark, probate is not always necessary.

With a living trust, you maintain control over the trust and how it is managed until your death, at which point the appointed trustees take over and administer the trust according to your wishes. For example, if a beneficiary receives an interest payment from the trust and it is your wish that they don’t have access to the trust in full until they are 21 years of age, but you die before they reach this age, the trustees will continue to ensure the interest payments are made until that person reaches 21 years old.

Assets in a living trust are not part of the probate process and are therefore protected from inheritance tax. In addition, jointly owned assets and property can also be included in a trust, whereas they can’t in a last will.

Whereas a last will ‘leaves’ assets and property to a beneficiary and is therefore subject to probate as well as inheritance tax, assets and property in a living trust are owned by the trust, i.e. they have been transferred to the trust. This means they are not subject to probate as they can’t be ‘passed on’. The grantor is a trustee of their own living trust and manages the assets and property within it until they die, at which point successor (named) trustees take over the role. They will administer the trust and either continue its management for a period of time or distribute its property to your named beneficiaries in the trust documents.

Because of the probate process, your assets and property detailed in a last will are a matter of public record. It is filed at the courthouse and anybody can access the details. However, a trust is a private record that only you, the appointed trustees and the beneficiaries have access. The only time that this would change is if a beneficiary or heir challenges the trust’s validity and files a lawsuit, at which point the trust documents become evidence.

Can I have a last will and a living trust?

Estate planning via a will is just one option of protecting your assets and property upon your death and ensures the people you wish benefit actually do. But combining it with a living trust, particularly if your estate is large and complex, ensures the best financial and legal protection for your estate.

However, to combine the two, it’s better to have a Pour Over Will which is designed to specifically work with a living trust. Essentially, it means that any assets or property you own that isn’t included in your trust will be transferred to your trust upon your death.

If you’re not sure what type of will or trust is right for you, contact us at Probates Online. We offer a professional online probate service that is efficient and affordable. If you are an Executor of a will or a trustee, or a close relative of a deceased person and you need to apply for a Grant of Probate, 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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What to Do When Someone Dies: Do You Need a Probate Solicitor?

Posted on November 9, 2021 by Vive Kumar Singh

When someone dies, it’s a very stressful, emotional time, especially if they were a close relative or family member. However, there are some procedures that must be done immediately, and some things that are legally required.

A question that always arises is, do I need a solicitor to apply for probate? In some circumstances, it is possible to apply for probate yourself but in other cases, where there’s no will or the deceased’s estate is complex, getting help from a solicitor is the best policy.

Steps to take when someone dies

Whether the deceased died at home, in hospital, in a care home or even abroad, the doctor attending will issue you with a Medical Certificate of Cause of Death. This is possibly one of the most important documents you will need.

● Register the death – you will need to register the death within 5 days, or 8 days if in Scotland. The 5-day period includes weekends and bank holidays. You will need to register the death at your local Register Office, if they died at home, or the Register Office local to the hospital/care home. Only a close relative can register the death, but if no relatives are available, it can be done by someone who was present when the person died, someone who lives in the house where the person died or someone who is arranging the funeral (but not the funeral director).

● Arrange the funeral – this can only take place after the death has been registered. It can be arranged by a funeral director on your behalf, or you can organise it yourself. In some cases, the deceased may have made their own funeral arrangements before they died.

● Advise relevant government departments – whether they are receiving benefits, allowances or a state pension, or if they are still working, you will need to notify the relevant government departments. This can be done using the Government’s Tell Us Once online service.

● Bereavement benefits – you may be eligible to receive financial support, such as the Bereavement Support payment or Guardian’s Allowance.

● Benefits, pensions and taxes – if your spouse/civil partner has died, you will need to manage theirs and your own benefits, pensions and taxes.

● Hear the will (if there is one) and deal with their estate – you may need to apply for grant of probate or letters of administration. If the deceased left a will, it advises who the beneficiaries are and other details. If there is no will, the estate will need to be valued.

Applying for probate

Whilst it isn’t compulsory in England and Wales, many people use a solicitor to apply for probate. There are quite a few legal procedures that need to be adhered to and having a solicitor handle the matter for you can greatly ease the burden, particularly if the deceased was your spouse/civil partner or close relative.

If probate is required and not applied for, the deceased’s estate cannot be accessed nor transferred to their beneficiaries and sits in limbo. Probate grants legal authority to the person that applies for it to deal with the deceased’s estate. It’s not wise to assume that assets are in joint names; it is better to check all the relevant details.

DIY probate

If you are named an executor in their will, or if there is no will but you are their next of kin, you will be responsible for completing probate for their estate. The probate process can be a lengthy process, time-consuming and if the deceased’s estate is large and/or complex, there is the potential to make mistakes, which will cause further delays and you could be held legally or financially responsible.

In some cases, using a solicitor to apply for probate may not be necessary. For example, if there is no property, land, shares or investments as part of the estate and is worth less than £5,000, and whether the deceased owned the estate outright or in joint names. But in most situations, the deceased’s bank, building society or any other financial firm may insist on probate to close their accounts and release any funds. If you choose to apply for grant of probate yourself, complete the necessary forms, including the value of the estate, working out how much inheritance tax (IHT) is due and making the payment to HMRC, liquidate (sell) any assets and distribute the estate to beneficiaries. You can opt for a DIY Probate Pack, which can be bought online, and includes all the relevant documents to be completed and provide informative guidelines on how to apply for probate. However, be aware that there is no legal support network to offer advice should an issue arise during estate administration.

Probate through a solicitor

If the deceased’s estate’s value is in excess of £5,000, including property, land, investments or shares, or a business that needs to be liquidated, or if there is no will, using a solicitor to apply for probate is the best option. Even if you are a named executor, working with a probate will take much of the burden off your shoulders and ensure you have the right legal advice on tap if you need it.

A probate solicitor will handle applying for grant of probate, or letters of administration if there is no will, as well as deal with all the legal, tax and estate administration processes. If the deceased’s estate is large or complex, i.e. involves multiple properties, extensive investments and trusts, the deceased may well have put the estate administration process into the hands of a solicitor as part of his wishes in their will.

One word of warning; some banks and solicitors have been known to charge relatives around 6% of the total value of the estate. Legally, this is not part of the probate or estate administration procedure. If you are choosing to use a solicitor to help you with the probate process, select one that offers a fixed probate fee upfront.

At Probates Online, we offer a professional probate service online that is efficient and affordable. If you are an Executor of a will or close relative of a deceased person, and you need to apply for a Grant of Probate 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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Wills, Probate and Estate Management in a Covid-19 World

Posted on November 3, 2021 by Vive Kumar Singh

The past 18 months have not been easy on many families due to the number of deaths caused by the coronavirus pandemic. In turn, the impact of Covid-19 on probate, as well as the management of wills and estates for individuals and families, has been significant.

When there are as many as 59% of the UK population without a will, the level of people dying ‘intestate’ – without a will – has been extremely high. As of April 2021, the Ministry of Justice (MoJ) reported that the average wait for Grant of Probate was now 35 working days; in the last quarter of 2020, it stood at around seven weeks (40 days). However, in reality, these figures don’t reflect the real situation.

Evidence suggests that only if a Grant of Probate application wasn’t ‘stopped’ did it stand a chance of being approved within the seven-week time frame. Reasons for it being stopped, could for example, include: an error on the application, more information being required or a dispute over who is applying for Grant of Probate. In reality, applications that were ‘stopped’, which happened far more than expected, were at around 12 weeks. Ironically, applications for Letters of Administration for estates without a will took less time (around nine weeks) than those for estates with a will (around 14 weeks). One would think that having a will would ensure the application was dealt with in a timely manner.

Initially, following the first lockdown, there were fewer Grant of Probate applications. This was put down to the fact that executors were often unable to get the documents they needed, such as the will, to go with an application. Once measures had been put in place to allow access, there was a sharp increase which was felt by The Probate Registry. To reduce the time it took to register a person’s death, they started to accept electronic signatures and encouraged legal professionals (as well as executors and families) to use their digital service. That said, certain documents still needed to be sent via the post, such as the original will.

How long does probate take?

Before the pandemic, the time to complete the probate process took seven to 12 months, but that was only if the estate was simple and there was a will. If there was no will or disputes, it could take longer. Sadly, the impact of Covid-19 on probate has caused major delays, particularly if the probate process involves the sale of property.

With so many in the property market being affected by the pandemic there is still a significant backlog of probate properties to be sold. Remember, it wasn’t really until the second lockdown of 2020 when estate agents were allowed to work again in an effort to keep the economy stable. The stamp duty holiday didn’t appear to have impacted this backlog as much as was hoped, and since the SDLT holiday has ended, it did little to help the situation.

The impact of Covid-19 on staffing levels

The fact that so many legal professionals, support staff, staff in courts, the Probate Registry and HMRC had to work from home also had a major impact on the probate process and estate administration.

Although many offices are now being staffed, the impact of Covid-19 on probate is still being felt because of the backlog experienced among surveyors, probate services, conveyancing professionals and estate agents.

There is added pressure for many estate administrators from HMRC. Inheritance Tax (IHT) on an estate must be paid within six months from the date of death and prior to Grant of Probate being issued. But, if the property is the main asset and it has to be sold before any payment to HMRC can be done, it means that many families have had to find the money to pay HMRC before they see any form of funds back from the estate. Although HMRC may accept instalments while the property is being sold (with the balance being paid once funds are available), there is still only a finite amount of time.

Online probate application

In addition to the lockdowns, solicitors, lawyers and the courts were forced to work from home which resulted in the introduction of the electronic probate forms in May 2020. The Law Society and the HM Courts and Tribunals Service (HMCTS) wanted legal representatives and private individuals to move over to the new online system by 18th May 2020 and submit probate applications via their new virtual paper forms. HMRC also started to send the IHT421 forms directly to the Probate Registry within 15 days of being issued.

However, there were plenty of instances where communication fell by the wayside – the legal professionals weren’t always aware the right forms had been sent to the Probate Registry and they also found HMCTS’s new online system difficult to use unless the deceased’s estate was simple.

Making a will and its execution

This is another area that was severely impacted during the pandemic. As dictated in Section 9 of the Wills Act 1837, for a will to be valid it must:

● Be in writing.
● Be signed by either the person making the will (the testator) or another person in the presence of the testator and at the direction of the testator.

In addition to this, the Act specifies that it must be signed in the presence of two or more witnesses who:

● Are present at the same time when the will is signed and they must see it signed.
● Must each attest and sign the will in the presence of the testator.

Of course, with lockdowns, social distancing and self-isolation over the past 18 months, to satisfy these requirements has become nigh on almost impossible. In Scotland, the rules were changed temporarily whereby a solicitor could act as a witness via video conference, as long as they were not an executor of the estate or any trust associated with it. However, in England and Wales, these measures were not taken, although witnessing through a window was considered acceptable.

Registering a death, applying for Grant of Probate or Letters of Administration, administering an estate, selling property, paying IHT, dealing with banks and sorting other financial assets; all these aspects have an impact on the families left behind. The impact of Covid-19 has only served to heighten the issue and, as we head into another winter and more potential restrictions, tensions are running high.

At Probates Online, we offer a professional probate service online that is efficient and affordable. If you are an executor of a will and need to apply for a Grant of Probate 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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Reasons for Making a Will and How to Pick the Right Adviser

Posted on October 19, 2021 by Vive Kumar Singh

According to research from Canada Life, 59% of people don’t have a will. That’s potentially 31 million people who may die ‘intestate’, i.e. without a will, and whose assets, financial, property and other, may be inherited by someone not of their choice.

It’s a fair conclusion that most people believe that even if they don’t have a will in place, all their assets and possessions will pass to their spouse or civil partner if they die. Actually, that’s not strictly true. The only time all your assets pass to your spouse/civil partner is if you have no children and there are no other living relatives. In most cases, that isn’t the situation.

Another misconception is that because you’ve been living together for years and are common law partners, the same rules apply as if you were married. Again, that’s not true. In England and Wales, the state or common law partner is not recognised in the legal sense and therefore your partner will not receive any of your estate if you die without a will. These are just two reasons to make a will. So, why should you make a will?

What is a will?

First, let’s just clarify; a will is a legally binding document that sets out how you want your estate distributed upon your death. Also known as a last will and testament, it will include your beneficiaries and the possessions/assets you bequeath to them, who will bring up your children and who will look after your pets, if applicable, the details of any trusts and can also include your funeral arrangements. If you have an uncomplicated estate, you can write your own will, although that is not recommended, but if you have a complex estate, always seek the help of a qualified solicitor or professional will-writer.

Reasons to make a will

● Decide who looks after your children – if you are a single parent and were to die before your children had reached the age of 18, who would look after your children if you died? Instead of the court choosing who has the role, you can specify in your will who is going to be their guardian (do ask them before you add this clause to your will and make sure they are happy to take on the role). This not only ensures who you want to raise your children, it also stops someone you don’t approve of taking control.

● Sets out who benefits from your estate – as your will is a legally-binding document, how you decide who benefits from your estate is down to you. Whether your estate is minimal, i.e. doesn’t include any property, there will still be family heirlooms you wish certain people to have when you die. Of course, if your estate is large and complex, it becomes an even more important reason to make a will. Your will also makes sure that should you and your partner not be married, you are able to protect them and the family home by leaving them a share of the property or set out a right to reside in the property for them.

● The option to disinherit – your will defines who gets what and allows you to leave someone out of your will, if that’s your wish. Without a will, someone may inherit part of your estate which may be against your wishes. For example, if you have remarried, you may not wish your ex-spouse/civil partner to inherit any of your estate.

● Make a gift or a donation to a charity – you may decide that you wish to make a gift/donation to your favourite charity upon your death. Not only does this benefit the charity, there is the potential that your family will pay less inheritance tax, particularly if the donation is over 10% of the value of your estate.

● Ensure your family/children are provided for in the future – as well as making sure the right person raises your children (if applicable), you may also want to ensure their financial security, such as paying school fees, setting up a trust from which they receive a regular income or a deposit on their first home. A trust is a beneficial way of providing for your children once you’ve gone. You can either set it up before your death or leave instructions for a trust to be established after you die. Either way, a will makes sure your wishes are honoured. One essential point to note here is that if you do not have a will, only blood relatives will automatically inherit from your estate. If you have remarried and have stepchildren, foster children or adopted children, or any other dependents, there is every likelihood they will not benefit from your estate should you die unless you have a will in place.

● Avoids paying too much inheritance tax – whatever you do, your family will have to pay inheritance tax on your passing. However, you can reduce the tax burden by making a will. What you leave to your spouse/civil partner is automatically exempt and any property you leave your children/grandchildren may well be subject to less tax. Trusts are another area where less tax may have to be paid.

● Avoids disputes – without a will, deciding who gets what from your estate could get messy. Avoiding any family disputes, arguments or disagreements is a good reason to make a will. You can make your wishes clear and smooth the probate process, too.

Finding the right adviser

Whilst there are facilities available for writing your own will, you run the risk that its validity could be challenged. You may also miss out on certain aspects of your estate, which could cause probate problems. Therefore, it is always recommended you get professional advice from a solicitor or will-writer to help you write your will and ensure it is legal.

You may choose a solicitor who specialises in writing wills and probate; whilst this may be the more expensive option, they are highly experienced and will be able to make sure you have included every aspect of your estate, even things that you hadn’t thought of, such as any cash you may have in the bank.

There are also professional will writers but not all are legally qualified solicitors, lawyers or chartered legal executives, and therefore not necessarily regulated. Always check their credentials and qualifications carefully and make sure they are a member of the Institute of Professional Willwriters (IPW) which is the professional body that regulates the will writing profession.

Banks and charities also offer will writing services, which often come under the title of estate planning but as with professional will writers, do your due diligence. Recently, there has been a rise in online will writers, driven predominantly by the coronavirus pandemic. Their fees are likely to be lower than solicitors or even professional will writers and they are not allowed to be executors of your will.

At Probates Online, we are able to offer a professional probate service online that is efficient and affordable. If you are an Executor of a will and need to apply for a Grant of Probate 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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Inheritance Tax: How Does It Affect You?

Posted on October 11, 2021 by Vive Kumar Singh

When you pass away and leave assets to family or any other beneficiaries, they are liable for paying tax on those assets, known as Inheritance Tax (IHT). However, it is possible to significantly reduce the amount of IHT payable or, indeed, pay nothing at all depending on the value of any assets, known as your estate.

How much is inheritance tax?

How much IHT your beneficiaries pay largely depends on the value of your estate, or your assets which include any investments, life insurance policy payouts, property and even cash in the bank.

If the total value of your assets is less than £325,000, your beneficiaries will not be paying any inheritance tax. But if your assets value is above this threshold, they will pay 40% on the value of the assets above the threshold. For example, if your estate is valued at £500,000 and your threshold is £325,000, you will only pay IHT on the estate value above the threshold, i.e. £175,000.

However, there are exceptions to this basic rule.

If you leave your entire estate that’s above the £325,000 threshold to your spouse or civil partner, charity or a community amateur sports club, your beneficiaries will not pay IHT.
If you bequeath your home to your children, and this includes children that are fostered, adopted or stepchildren, the threshold may increase to £500,000.
The IHT rate will drop to 36% on some of your assets if you choose to bequeath at least 10% of your estate’s net value to charity.

Inheritance tax for married couples

If you are in a civil partnership or are married the thresholds are different. If you die before your spouse:

Assets left to your spouse/civil partner are exempt from IHT, if they are living in the UK.
Any assets above the threshold are passed on to your spouse and added to their threshold, as well as their main residence allowance. So, potentially, your spouse’s/civil partner’s tax-free threshold level could be as much as £1 million.

Inheritance tax relief

There are various exemptions and tax reliefs that may apply to your estate, such as the nil rate band (NRB), taper relief and business property relief.

Residence nil rate band (RNRB) – any part of the estate that is over the nil rate band (NRB) – every person’s threshold of £325,000 – that is passed on to the spouse/civil partner, as well as any gifts, can be passed to the surviving spouse/civil partner and is exempt from IHT. In April 2017, the residence nil rate band was introduced and is an additional amount to the NRB, which can be transferred.
Taper relief – it is applicable when inheritance tax is due to be paid on a ‘gift’ that was granted 7 years prior to your death. Essentially, any gifts passed on before your death are subject to IHT but the longer it is since you made the gift prior to your death, the amount of tax your beneficiary has to pay is based on a sliding scale, i.e. it is tapered. For example, a gift made 3 years before your death is liable to 40% tax. Gifts made 7 years before you died are tax-free unless they are part of a trust. Known as the 7-year rule, you must keep a record of what you gave, how much it is, when you gave it and who you gave it to, and your executors must know these details as well. However, a ‘gift with a reservation’, i.e. the gift is still in use by you, is considered part of your estate.
Business property relief – business property tax relief can reduce the amount of IHT paid on any business assets, such as shares, buildings or any business machinery. If you own a business, or are a partner in a business, it forms part of your estate on your death and your beneficiaries will be liable for tax on that asset. However, it is possible to reduce the amount of tax paid by claiming business relief by 50%, or even 100%. For example, if you are a sole trader and bequeath your business to family that’s valued at £400,000, the £325,000 threshold applies and is eligible for business property relief on the remaining £75,000; therefore, zero tax is paid. However, if you only owned 50% shares in the business, i.e. voting rights, or 50% shares in an unlimited company, i.e. 50% of the land, buildings and/or equipment/machinery, only 50% business relief is claimable.

How do gifts work in terms of inheritance tax?

There are some ‘gifts’ you can make prior to your death which will reduce the level of inheritance tax payable and, in some cases, mean no tax is paid. A gift includes:

Personal items, such as jewellery or antiques.
Household items, such as furniture.
Property, including a house, buildings or land.
Stocks and shares, as listed on the London Stock Exchange.
Unlisted shares, i.e. shares in an unlimited company, if you have held them for less than 2 years prior to your death.
Money; this also includes money that remains should you sell a gift for less than it is worth. For example, if you sell your property to a spouse or child for less than the market value, the monetary difference is considered a gift.

Gifts do not include any assets you leave to beneficiaries in your will. Those assets, such as cash in the bank, possessions and any other property, are considered part of your estate and are valued accordingly for inheritance tax purposes.

Any gifts to your spouse/civil partner during your lifetime are exempt from inheritance tax as long as you are legally married or in a civil partnership, and they permanently live in the UK. In addition, any gifts to political parties or charities, if they are before your death, are exempt from IHT.

Every person is allowed to give away up to £3,000 worth of gifts in any tax year and they won’t be added to their estate, and therefore be liable for IHT. Known as an ‘annual exemption’, you can gift £3,000 to one person or distribute the amount between different people. You are also allowed to carry it forward to the next tax year, but only for a single year.

This inheritance tax exempt rule also applies to annual birthday or Christmas gifts, up to the value of £250, as well as gifts towards a wedding or civil partnership ceremony.

At Probates Online, we are able to offer a professional probate service online that is efficient and affordable. If you are an executor of a will and need to apply for a Grant of Probate 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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Is It Ok To Do Probate Online?

Posted on September 13, 2021 by Vive Kumar Singh

There have been changes in recent years in the way executors, will administrators and solicitors are able to apply for probate. Since 2017, it has been possible to apply for probate online via a digital service that was launched by HM Courts and Tribunal Services (HMCTS).

Initially, the service was only available for executors of a deceased’s estate as long as they were acting on their own, and they had a copy of the deceased’s will. It was later expanded to include applications from solicitors, including more complex estates. Indeed, since October 2020, the online probate service has considerably expanded their services, including applications by legal professionals for intestacy and letters of administration.

The coronavirus pandemic over the past 18 months has driven a significant rise in the number of online probate applications. People are now able to apply for probate online quickly and easily, but how do you apply for probate online?

Who applies for probate online?

If there is a will, an executor or executors will have been named and it is their role to administer the deceased’s estate and apply for probate. The executor(s) can be a family member, a trusted friend of the deceased or family, or a solicitor. If there is more than one executor, the application for probate online should include all their names.

Only the executor(s) of the deceased’s estate can apply for a Grant of Probate. If there is no executor, the deceased’s next of kin or a close relative must apply for a grant of letters of administration in order to handle the estate.

If there is not a will, and therefore no executor(s), the deceased’s next of kin or a close relative must apply for authority to administer the deceased’s estate. They will need to apply for a ‘grant of letters of administration’ which allows them to deal with probate, and they will then become the administrator for the estate.

There are other circumstances where letters of administration are required:

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

The digital probate service

Launched in 2017, the online probate service allows people to apply for a grant of probate, saving time on many of the legal processes. However, you will still need to send actual copies of the relevant paperwork, including the death certificate and the deceased’s will. But the statement of truth can be done online – executors no longer have to visit the probate office to swear their oath – and payment of the probate fees can be done electronically.

Solicitors are also now allowed to apply for probate online. 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 being issued, known as a caveat, through the online probate service.

The online probate service allows executors, administrators and solicitors to view their probate applications and forms on a dashboard, as well as monitor their probate process. According to HMCTS, 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.

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

What do I need and when do I apply for probate online?

Once the death has been officially registered (which is within five days), apply for probate online within six months of the death. This is because there is a time limit on paying HMRC any Inheritance Tax that may be due. In practice, reporting the value of an estate to HMRC and applying for probate online is usually done at the same time to avoid any delays.

Before you start your probate online application, report the value of the deceased’s estate to HMRC first. Then get together the following documents as these will need to be sent to HMCTS:

The original will of the deceased together with any codicils (small additions to the will). It is recommended you have at least two copies of the will and codicils. Complete form PA1P if there is a will; if not, complete form PA1A.
The death certificate, or an interim certificate
HMRC’s Inheritance Tax form (IHT205) even if Inheritance Tax is not due. Ensure you complete the correct form for HMRC.

When there isn’t any Inheritance Tax due, form IHT205 should be completed if:

The estate’s value is £325,000 or less (known as an Excepted Estate)
The estate’s value is less than the Excepted Estate limit of £650,000. However, there has to be a claim to transfer the entire nil band rate from a wife, husband or civil partner that died first, and their allowance wasn’t used.
The estate’s value is less than £1 million but no Inheritance Tax is due as the estate is being passed on to a surviving wife, husband or civil partner, or it is a charity exemption.

How much does it cost to apply for probate online?

Once you have had the deceased’s estate valued and reported this to HMRC, you can apply for a grant of probate online. You will need to pay a fee of £215, which can be done online through HMCTS’s service when you submit your application. If the value of the estate is lower than £5,000, HMCTS waive this fee.

It is advisable to order 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 at around 50p per copy.

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Do I Need to Use Probate Solicitors or Can I Use Probate Experts Online?

Posted on August 30, 2021 by Vive Kumar Singh

When someone dies, generally the executors or administrator of the deceased’s estate will need to apply for grant of probate in order to administer the estate. Probate, however, is not always required if there is a living spouse or civil partner or the value of the estate is below a certain level. But, in most cases, probate will be needed. The question is, do you need to use specialist probate solicitors or can you use online probate solicitors?

Why probate?

In some cases, probate is required, sometimes it is not and in other cases, grant of letters of administration will be needed instead of probate.

Generally, if the value of the estate is in excess of £5,000, probate is required.

When there is a will, the executor(s) appointed to administer the estate will apply for grant of probate. The executor(s) can be a family member, a friend of the deceased or a solicitor. However, if there is no will or the executor(s) resign from the role, the deceased’s next of kin or a close relative will need to apply for grant of letters of administration to administer the deceased’s estate, known as the administrator.

Other circumstances where grant of letters of administration is required:

A beneficiary has been left the entire estate;
No executors have been named in the will;
The named executors are not prepared to accept the role and resign.

If the majority of the deceased’s assets are jointly owned with a spouse or civil partner, such as joint bank accounts or a joint mortgage, probate may not be required. Cases where probate is not required include:

The estate is less than £10,000 in value and there are no shares or land within the estate. If the estate is small, the bank or financial institution has the discretion to decide whether they need to see Grant of Probate in order to release the funds.
If any financial assets or property are owned jointly with a spouse or civil partner.

The probate threshold ranges from £5,000 to £50,000. Banks and financial institutions have their own procedures regarding a deceased person’s assets; contact them as soon as possible.

When there is a will, an executor(s) will have been appointed to administer the estate and apply for grant of probate. If there is no will or executor(s), the deceased’s next of kin or a relative will need to apply letters of administration to administer the deceased’s estate.

Other circumstances when letters of administration are needed include:

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

Benefits of using probate solicitors

Whilst it is possible to handle probate of a deceased’s estate yourself via online probate services, sometimes the legal terminology and probate service can be complex and confusing if you don’t have a legal background.

If the deceased’s estate is fairly simple and they left a detailed will setting out their wishes, as well as how the estate was to be distributed, then handling the probate process online should be pain-free. However, if the deceased’s estate large and complex, or other factors that may make the probate process complicated, using a probate solicitor may be the best option.

Situations where probate cases are more complex and it is probably better to enlist the services of a probate solicitor include:

If there is a dispute about the will or questions on whether it is valid;
Where a beneficiary that may have been left out of a will deliberately by the deceased and they want to make a claim;
Where assets may be held in a trust or the will states that a trust must be created;
Where the estate is insolvent or bankrupt;
The deceased either lived abroad or died abroad; and
The estate includes property or assets that are foreign to the UK.

In these situations, a specialist probate solicitor will have the knowledge and expertise to be able to advise and administer the deceased’s estate. In addition, by using a probate solicitor you will pay a reduced probate application fee, which currently stands at £155.

Benefits of using online probate solicitors

Using online probate solicitors does not mean you are not getting professional advice and service. You will still be talking to a legal professional that specialises in probate. The essential differences between an online service and a physical service are:

Generally, the solicitor’s fees will be cheaper as there are fewer overheads for them to cover, making the use of their services far more affordable.
They are more readily available 24/7 as your queries are presented online to a pool of online probate solicitors.
There is no requirement for face-to-face meetings – all communication is carried out via email and/or telephone.

Online probate solicitors are registered in the same way as non-online solicitors and have to abide by the same rules. They are more than capable of handling uncontentious wills and subsequent probate applications. However, you may find that when it comes to complex probate cases or estates where the deceased did not have a will, an online probate solicitor service may not be able to help you as effectively.

Now that it is mandatory for all probate applications to be submitted online, whether a solicitor is applying for grant of probate or the executor(s)/administrator, it is not always necessary to go through non-online solicitors. However, with that said, if the deceased’s estate is large and complex, or any of the above situations apply, a non-online probate solicitor may be in a better position to administer the estate and deal with the complex issues on your behalf.

At Probates Online, we are able to offer a professional probate service online that is efficient and affordable. If you are an executor of a will and need to apply for Grant of Probate 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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What Is Probate and Where Do I Start?

Posted on August 19, 2021 by Vive Kumar Singh

Have you heard the term ‘probate’ but aren’t sure what it really means? Are you an executor of a will or have a relative passed away and you’re not sure where to start with probate? Don’t worry, you are not alone; we’re here to help clarify what probate is and how to manage it.

Probate is essentially the legal process that any deceased person’s estate has to go through, whether there is a will or not. But how long does probate take? Well, that depends on a number of factors. Firstly, the size of the deceased’s estate and secondly, whether the deceased has left a will that details his wishes, particularly in terms of who inherits what part of the estate.

One final factor to take into consideration is how long the probate service takes and currently, the average time to wait for Grant of Probate – the authority given to beneficiaries to proceed with administering the estate – is about five weeks.

What is probate?

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

Generally, if there is a will whereby the deceased has detailed 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. However, if there isn’t a will in place, probate can take much longer. What will delay the process, even more, 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 as to whether they need Grant of Probate to release the funds.
If any money, i.e. bank accounts, or property are 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, an executor will have been appointed 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. If there is no will or executor, someone representing the deceased will need to apply the authority needed to administer the deceased’s estate. This is usually the next of kin and they will need to apply for a ‘grant of letters of administration’ from the court.

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 executor of the estate can apply for a Grant of Probate. If there is no executor of the estate, 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 executor.

Where do I start to apply for probate?

Once the death has been registered (which is within five days), you should apply for probate within six months of the death. This is not because there is a time limit on applying for probate. It is because there is a time limit on paying HMRC any Inheritance Tax that may be applicable. In practice, reporting the estate’s value to HMRC and applying for probate is usually done at the same time as both are needed to finalise the estate.

Whether there is a will or not, the probate process is similar. The first step is to find out the value of the estate, such as money in the bank, the deceased’s belongings, and any property held in the deceased’s name (even if it is joint names, the value still needs to be ascertained). You will need to consider:

Bank accounts, pension funds and any other financial assets, such as mortgage on a property, savings and life assurance policies.
Any property, whether in joint names or not, will need to be valued by a local estate agent. It is always worth getting three to four valuations.
Any outstanding debts, such as utilities, mortgage payments, credit cards, loans or any other monies owed by the deceased.
Any gifts the deceased made that are above the official allowance within the previous seven years (not including Christmas, birthday or anniversary gifts) – they may be subject to Inheritance Tax.

In most cases, you will need a copy of the death certificate and/or will to send to the relevant organisations.

Once you have this information, it will need to be reported to HMRC who will work out if any Inheritance Tax is due. This will also tell you if you need to apply for probate or letters of administration. This process can take several months and a response from HMRC may take even longer. However, once you have the valuations, have spoken to the banks and/or financial institutions, and assessed debts and gifts, you can apply for a Grant of Probate.

Applying for probate can either be done through a solicitor, often the solicitor that holds the deceased’s will or a family solicitor, or you can file for probate yourself online. If there is a will, you will need the following to apply for probate:

An official copy of the death certificate (if applying online, this will be a scanned image);
The original will;
The application fee.

One point to note is that you can only apply for probate online if:

All the named executors are alive and able to make decisions; and
The deceased spent most of their life in England and Wales.

If there is no will, the next of kin or a close relative of the deceased will need to apply for letters of administration which you can do yourself via post using the form PA1A, which is a probate application form. You can download the forms from an online probate service or from a probate registry near you.

At Probates Online, we are able to offer a professional probate service online that is efficient and affordable. If you are an Executor of a will and need to apply for a Grant of Probate 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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