Probate online Archives

How to Transfer Property to Your Spouse After Death in 2023

Posted on February 28, 2023 by Vive Kumar Singh

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

Will it Be an Executor or an Administrator?

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

Accessing Money, Property and Any Other Assets in the Estate

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

Transferring Property After Death

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

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

A Sole Owner

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

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

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

A Joint Owner

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

Joint Tenants

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

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

Tenants in Common

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

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

Do You Need Assistance with the Transfer of Property?

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

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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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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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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.

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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What Happens to a Beneficiary’s Inheritance if the Beneficiary Dies before the Inheritance is Disbursed?

Posted on July 18, 2022 by Vive Kumar Singh

It’s far easier for the executors and family of a deceased person if there is a will, especially when it comes to disbursing the estate to named beneficiaries. However, in some cases, a beneficiary may die before receiving their inheritance. This is usually due to the fact that with some estates, probate can take up to a year or longer before the executors are able to distribute it according to the deceased’s wishes.

So, what is the beneficiary inheritance process and what happens if the beneficiary dies before they can receive their inheritance?

What is the beneficiary inheritance process?

The beneficiary inheritance process occurs when someone dies, and their estate goes through probate. Most deceased’s estates have to go through probate and include the administering of all financial and physical assets, such as property, and how it is distributed to the beneficiaries.

If the deceased left a will which details the beneficiaries of the estate, i.e. who is going to inherit what, the beneficiary inheritance process can take up to 12 months to complete. However, if the deceased didn’t leave a will, 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.

There are cases where probate is not required, particularly since the probate rules have changed recently. These situations 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 to decide if they require a Grant of Probate to release the funds to beneficiaries.
If there is any money, i.e. in bank accounts, or property is jointly owned with a spouse or civil partner. In reality, the threshold where probate is not required 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, or executors (it is standard practice to have more than one executor), they will have been named in the will by the deceased, and it’s their job to administer the estate and apply for Grant of Probate. The executor(s) can be a family member, a friend of the deceased or the solicitor that holds the will, but not a beneficiary. If there is no will, someone representing the deceased will need to apply for the authority to administer the deceased’s estate from the court. This is usually the next of kin, and they will need to apply for a ‘grant of letters of administration’.

There are some situations where letters of administration are also 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.

What happens if a beneficiary dies before they can receive their inheritance?

In some circumstances, it may happen that a beneficiary dies before the deceased’s estate has been granted probate or before the process of administering the estate has been completed to the point of disbursement of inheritance to beneficiaries.

Generally, if this happens, the beneficiary does not receive their inheritance, and it passes back to the estate to be re-distributed between the other heirs. However, there are some situations where this can cause confusion, such as survivorship conditions.

Survivorship conditions – many wills today include a survivorship clause which states that the beneficiary must survive the deceased by a certain period of time, usually 28 days before they can receive their inheritance. If this doesn’t happen, the beneficiary could be treated as though they had died before the deceased. If there is no will, the Rules of Intestacy also includes this cause and means that the deceased’s spouse or civil partner must also survive by 28 days or more to be allowed to inherit the deceased’s estate. In most cases, if the beneficiary has survived the deceased by 28 days but later dies before the estate is finalised, their share of the inheritance usually passes to their own estate and is then subject to the terms of their own will or Rules of Intestacy if no will.
Beneficiary dies before the deceased – if a beneficiary dies before the deceased, their inheritance (‘gift’) lapses, i.e. fails, and they do not inherit their share of the deceased’s estate. Their share goes ‘back into the estate’s pot’ and will be redistributed between the other beneficiaries. However, if the deceased thinks this may happen, they are entitled to make a provision for this situation in their will. They can redirect that beneficiary’s share of their estate to another specific beneficiary, such as a charity or another family member. There are also other circumstances when this can happen:
- The will includes a gift to a child, an adopted child or a grandchild of the deceased.
- The child dies before the deceased and leaves children of their own.
- The children of the intended beneficiary are living at the time of the deceased’s death.

In these situations, the inheritance passes to the beneficiary’s children, but this does depend on whether or not there is an expressed wish to the contrary.

The best option is always to seek professional advice if you think this may happen in your circumstances or you want to make sure your will provides for this potential situation.

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 a 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 Tax Do You Pay on Probate in the United Kingdom?

Posted on June 28, 2022 by Vive Kumar Singh

In the UK and in many other countries, when someone dies, their estate may be subject to tax. In most cases, that tax due is Inheritance Tax (IHT) which the family of the deceased pay on their ‘inheritance’. However, in some cases, if the deceased’s estate is extensive and incorporates overseas investments or properties, a family business or anything else that ‘earns’ an income, Capital Gains Tax (CGT) may also be applicable.

How much tax on probate the family pays on a deceased’s estate largely depends on its total value. The estate includes any pay-outs on life assurance policies, investments, rental properties and cash in the bank. It may be that the deceased’s estate is not liable to pay tax on probate if the value of the estate is below HMRC’s tax threshold.

In addition, following changes to the way Inheritance Tax is calculated from January 2022, the reporting of IHT has been simplified. So, how much tax on probate do you pay in the UK?

What is Inheritance Tax and Capital Gains tax on probate?

Inheritance Tax is a tax on the value of the estate of someone that has passed away. The deceased’s beneficiaries/family is liable to pay tax at a rate of 40% on the estate’s value, over and above the UK IHT tax threshold of £325,000.

For example, if the deceased’s estate is valued at less than £325,000 no IHT is payable to HMRC. However, if the deceased’s estate is valued at £400,000, the beneficiaries/family/executors will be liable for tax on the amount above the tax threshold, i.e. £75,000.

Capital Gains tax on probate is not usually required on the transfer of assets to beneficiaries. However, any assets acquired by the deceased’s estate after death could be liable for CGT; i.e. it is a tax on ‘gains’ usually associated with residential property but it can also be applied to investments and businesses. This means that when the beneficiary or executor sells or gives away the asset, CGT is due on the ‘gain’ in the value of the asset between the date of the deceased’s death and when the asset was sold or given away.

For example, if the value of the deceased’s property was £200,000 upon death, but by the time it was sold, the value had increased to £250,000, the estate (beneficiaries or family) may have to pay CGT on the ‘gain’ of £50,000.

What is the Inheritance Tax threshold?

There is currently only one threshold of £325,000. This is known as the ‘nil-rate band’ (NRB), and an estate that is valued below this threshold does not pay any tax on probate. Estates above the threshold are liable for Inheritance Tax at a rate of 40%. Let’s give you an example:

If your estate is worth £600,000, your IHT is calculated as follows:

£600,000 – £325,000 = £275,000

£275,000 x 40% = £110,000 tax on probate due

Therefore, the deceased’s beneficiaries receive £325,000 + £165,000 (the remainder value of the estate once tax has been paid), which equals £490,000.

However, there are several situations where the Inheritance Tax threshold is different.

Married and civil partnerships – if you are married or in a civil partnership and leave your entire estate to your spouse or partner, if one partner dies first, there is no tax to pay, and in most cases, the nil rate band threshold won’t be affected either. This means that the living spouse can add the unused balance of their deceased spouse’s/partner’s threshold to their own, essentially doubling their threshold when they die. However, if the spouse/partner leaves a part of their estate to other beneficiaries, like children, or made a lifetime gift seven years prior to their death, and the estate is of high enough value, Inheritance Tax is due, and a proportion of the nil rate band threshold may be taken.
Leaving a property – if you are married or in a civil partnership and leave the family home to your living spouse or a direct descendent, i.e. a child or grandchild only, in its entirety, under current rules there is a further £175,000 tax-free allowance but only if the value of the property is under £1 million. Anything above this value and the allowance drops significantly. The good news is that any unused tax allowance balance can be added to the living spouse’s allowances on their death.

Do spouses and civil partners pay a tax on probate?

In most cases, spouses and civil partners can leave their estate tax-free. In addition, the surviving spouse or partner can add any unused tax-free allowance to their own tax allowances. So, in reality, the deceased can leave their spouse/partner as much as £650,000, or £1 million if it includes a property, without them having to pay any tax on probate.

However, if the deceased spouse/partner used most or all of their tax-free allowance by leaving a proportion of their estate to a direct descendent, the above does not apply.

Tax-free gifts and trusts

It is possible to make gifts to spouses/partners or to charities, which may be exempt from tax, but it does depend on when the gift was made. If it was given at least seven years prior to death – if it’s not gifted to a business or a trust – there will be no tax to pay on the gift. However, if the person dies before the seven years, there will be a tax levy to pay and how much depends on when the person dies during that seven-year period. This is known as IHT taper relief on potentially exempt transfers (PETs).

It is also possible to put assets into a trust that is left to a beneficiary after death. Whilst a trust doesn’t exempt the estate from paying tax on probate, it can go some way to reducing the amount of Inheritance Tax paid. This is because any assets held in a trust, and managed by appointed trustees on behalf of the beneficiaries, are owned by the trust, not the trustees or the person who set up the trust. If you live beyond seven years from the date the trust was established, those assets are not included in the estate upon death and may be tax-free. Instead, a 20% IHT tax levy is imposed when you set up the trust, and every ten years, the assets are revalued, and 6% IHT is paid at the time, minus the nil rate band threshold of £325,000.

Whenever you are writing a will, it’s always important to understand the tax implications on your beneficiaries, family and executors first.

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Online Probate Help: General Enquiries Resolved

Posted on June 11, 2022 by Vive Kumar Singh

If you’ve not had to deal with a deceased’s estate and apply for a Grant of Probate, it can be a daunting task. These days, you don’t need to go through a solicitor to apply for a Grant of Probate. You can handle the process yourself via an online probate application.

To assist you with the process, here are the answers to the most commonly asked questions about online probate help.

What is probate?

Probate is the process of administering a deceased person’s estate (assets), whether there is a will or not, and distributing assets to beneficiaries.

What is a grant of probate?

If there is a will, the grant of probate is the legal document granted to the executors of the deceased’s estate that gives them the authority to manage the estate, gather the deceased’s assets, pay any debts and tax liabilities, and distribute the beneficiaries inheritance.

What are letters of administration?

If there isn’t a will, the probate is known as letters of administration and is granted by the court to the person managing the deceased’s estate. Once granted, it works in the same way as a grant of probate.

How long does probate take?

On average, probate takes 9 – 12 months to settle an estate in full. The simpler the estate, the quicker the probate process and, in some cases, it may only take six months. However, if the estate is more complex, i.e. involving overseas assets or businesses, or the will is contested, the process will take longer than 12 months.

Can I apply for probate online?

Yes, you can apply for probate online with the Probate Registry via the MyHMCTS platform. You can complete the online details and send them, along with the probate fee, to start your application immediately. They will also share your application details with HMRC to ascertain how much inheritance tax is applicable.

What information do I need to apply for online probate?

When applying for probate, you will need to have the following information:

The deceased’s personal details, including full name and residential address at the time of death.
The date the deceased died.
The location where the deceased died, i.e. in a care home, a hospital or at home.
A copy of the will. (the original will need to be sent to the Probate Registry).
The names of the executors, if there is a will or the name of the representative that will be managing the deceased’s estate.
A copy of the death certificate (the original will need to be sent to the Probate Registry).
A copy of the death certificate (an original copy will need to be sent to the Probate Registry).
A copy of the IHT400 inheritance form including the amount of inheritance tax due (the original completed form will need to be sent to HMRC).

How much does the probate application cost?

The current cost to apply for probate online is £273 (with effect from 26^th January 2022) if the estate’s value is over £5,000. If the estate is valued at less than £5,000, there is no fee to pay. It can be paid online with your probate application to MyHMCTS. If you don’t want to pay online, you can send a cheque together with a Statement of Truth – this declares, or oath, that the information you have provided is correct – to the Probate Office.

Do I need a solicitor to help with probate?

Officially, no, you don’t need a solicitor to help with probate. However, because probate is a legal process and you are likely to come across a variety of legal terms, it is recommended that you seek the advice of a probate solicitor. They will be able to help you with the administrative forms and details, calculate how much inheritance tax is due (if any) and help you to resolve any disputes.

How does the probate process work?

When someone dies, the executors of the will, if there is one, or family representative, if there isn’t a will, have a short period of time to apply for a grant of probate. Once granted by the court, this gives them the authority to manage and settle the deceased’s estate according to their wishes, if there is a will. If there isn’t a will, the probate process must follow the legal intestacy rules.

What does intestate mean?

If someone dies and hasn’t left a will, they are considered to have died intestate in accordance with the Intestate Succession Act 1987 (Act 81 of 1987). Under the intestacy rules, the deceased’s estate is distributed evenly between the person’s children first. If there are no children, it will go to other descendants. If there are no living relatives, the estate is passed to the government.

Who can apply for letters of administration?

If there is no will, the deceased’s next of kin applies for letters of administration. The next of kin is the deceased’s surviving spouse, children, parents or siblings. If there are no living relatives, a close friend or a solicitor may apply and are known as the administrator of the estate.

What is the seven-year rule in respect of inheritance tax?

The seven-year rule applies to any gifts the deceased has made in their lifetime before their death. When the gift was made in the seven years prior to death determines the percentage of tax paid by the deceased’s estate.

Managing the estate of a deceased person can be a complex process, particularly if you are not familiar with legal terms. It is always advisable to get good advice from a professional probate solicitor.

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How Does Inheritance Tax Taper Relief Work in the United Kingdom?

Posted on May 22, 2022 by Vive Kumar Singh

When someone dies and leaves their assets, an inheritance, to beneficiaries (usually family and friends), they are liable to pay Inheritance Tax (IHT) based on the value of those assets, the deceased’s estate. There are certain tax thresholds and tax reliefs that can be applied which can reduce the amount of IHT to be paid.

One of these tax reliefs is Inheritance Tax Taper Relief, and is applied to any ‘gifts’ the deceased made to family and friends before they died. Also known as the ‘7-Year Rule, what are the criteria for Inheritance Tax Taper Relief and how does it work?

What is Inheritance Tax Taper Relief?

IHT taper relief isn’t strictly speaking a tax relief. In reality, it only reduces the amount of tax payable on an asset, not the value of the asset. For example, if there isn’t any tax to pay on the gift, it is not possible to claim taper relief.

This means that any gift which is part of the IHT threshold, known as the Residence Nil Rate Band (RNRB) – which currently sits at £325,000 per person or £650,000 if it has been transferred to another person – is not subject to tax.

IHT taper relief can only be applied if:

The gift was made over three years but less than seven years prior to the deceased’s death.
Tax is payable on the gift in its own right, which usually means it is a ‘gift with a reservation’, i.e. the gift is still in use and therefore considered part of the estate.

How does it work?

Any gifts that are given prior to death and subject to IHT; however, how much IHT the receiver of the gift pays depends on how many years before death the gift was given, i.e. it is tapered.

If the gift was given within three years before death, it would be subject to the full IHT tax rate because the taper relief percentage doesn’t start until three years have passed. The taper relief percentages are as follows:

Period between date of gift and donor’s death	Taper relief percentage applied	Rate of tax on gift
0 – 3 years	0%	40%
3 – 4 years	20%	32%
4 – 5 years	40%	24%
5 – 6 years	60%	16%
6 – 7 years	80%	8%

If the gift was made more than seven years after death, in most cases, there will be no IHT to pay. The value of any lifetime gift is the first subject to the nil rate band threshold of £325,000. It is the amount remaining that can benefit from Inheritance Tax Taper Relief as long as it was gifted at least three years prior to death.

Lifetime gifts that have a value that is below the nil rate band will not benefit from IHT taper relief. In addition, the deceased’s estate will only benefit from the remaining amount of the threshold after the gift’s value has been deducted.

What qualifies as a gift?

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 two years prior to your death.
Money; this also includes money that is left over 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.

There are some ‘gifts’ you can make which may reduce the level of inheritance tax payable and, in some cases, result in no tax needing to be paid, such as gifts made to charities or political parties. Gifts made to your spouse/civil partner during your lifetime are exempt from inheritance tax but only if you are legally married or in a civil partnership and they live permanently in the UK.

Everyone is entitled to make a gift up to £3,000 in any tax year, which isn’t added to your estate and is therefore liable for IHT. This is called an ‘annual exemption’, and the gift can be made to one person or distributed between different people. This gift amount can also be carried forward to the next tax year, but only for one year.

The inheritance tax-exempt rule is also applicable to annual birthday or Christmas gifts, up to the value of £250. You can also gift money towards a wedding or civil partnership ceremony. The level of gift can be

Up to £5,000 to a child.
Up to £2,500 to a grandchild or a great-grandchild.
Up to £1,000 to anyone else.

In addition, you are allowed to combine gifts, such as a wedding gift and another allowance, as long as it is for the same person and the other allowance is not the small gift allowance.

You are also entitled to make regular gift payments to help towards somebody else’s living. Called ‘normal expenditure out of income, there isn’t a limit to how much you give as long as you can afford the payments after you have met your own living costs, and it comes from your monthly income. This type of gift can include:

Making rent payments for your child.
Paying money into a savings account for a child that is under 18 years of age.
Providing financial support for an elderly relative.

These gifts can also be combined with other tax relief allowances, such as your annual £3,000 ‘annual exemption’ gift.

If you are giving gifts prior to your death, it is important to keep a full and detailed record of the gifts you have made, including

Who you gave them to and what you gave.
The value of the gift.
When you gave the gift.

The executors of your estate or solicitor that is handling the administration of your estate following your death, will need to know the details of the gifts you made in the seven years prior to your death so that they can calculate how much IHT is due on your estate.

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How to Track a Probate Application in the United Kingdom

Posted on May 5, 2022 by Vive Kumar Singh

When a person dies, probate has to be applied for, whether the deceased has left a will or not. If there is a will, the executors will apply for a Grant of Probate. If there isn’t a will, a close relative or nearest family member should apply for Letters of Administration as part of the probate process, which gives them the authority to handle the deceased’s estate.

Currently, the probate application takes 4-6 weeks to receive a Grant of Probate or Letters of Administration. However, the entire probate process, i.e. from the date of death to the distribution of the deceased’s estate, takes around six months for a simple will and estate. The more complex the estate, the longer it may take. So, how do you track probate applications to monitor progress?

Applying for probate

First, let’s just review how to apply for probate. In most cases, you can apply for probate online via the HM Courts & Tribunals Service, MyHMCTS. To make the application, you will need certain documents and information, including:

The original will (if there is one) or annexed will.
The death certificate.
The deceased’s full name, address and date of death.

Once you have completed your online application, you will need to send the above documents to the Probate Service (MyHMCTS) so that they can verify your online application.

You will also need to complete and send the right Inheritance Tax forms to the Probate Service – these are IHT400 and IHT421 if the estate is over £5,000 and IHT200 and IHT217 inheritance tax form if it is below the value of £5,000 – who will then send them to HMRC for verification. This means that there will be little movement on the progress of your probate application until HMRC have returned the IHT forms.

There are several situations where you can’t use the online service to apply for probate. These are:

A second grant of probate application for the same estate.
A foreign will.
The application is accompanied by a document to prove a copy of the will.
The person applying is under the age of 25 years.
The probate application is related to resealing under Colonial Probates Act 1892 and 1927, Rule 39.

Do I need to apply for probate?

Generally, if the value of the deceased’s estate is over £5,000, a Grant of Probate or Letters of Administration is required.

If the deceased left a will, the appointed executor(s) apply for probate but if there is no will, the next of kin or a close family member will need to apply for Letters of Administration. This grants them the authority to handle the deceased’s estate.

There are other circumstances where Letters of Administration are needed and these 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 deceased’s estate can apply for a Grant of Probate.

However, 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, an application for a Grant of Probate may not be required. Other circumstances when probate is not necessary are:

The estate is valued at less than £5,000 and there are no shares or land as part of the estate. Suppose the estate is particularly small and there is only a token amount in a bank account. In that case, the bank has the discretion on whether they need a Grant of Probate or Letters of Administration to release the funds to beneficiaries.
If any money, i.e. bank accounts or property, is owned jointly with a living spouse or civil partner.

If you’re not sure if you need to apply for probate, contact our team at Probates Online to advise you.

How to track probate applications

If you are a beneficiary of the deceased’s estate or family, it is possible to find out if a Grant of Probate or Letters of Administration has been granted, but that’s all you can do. You need to be the person(s) that applied for probate to be able to track the progress of a probate application.

When you create an online account with MyHMCTS, you will create login details for your probate application process. The probate service keeps your record up-to-date with progress and will detail each step as it is completed so that you can track it. Once probate has been granted, it is good to buy a copy of the Grant of Probate (if you didn’t make that request when you applied).

The Grant of Probate will contain information that is crucial to the handling of the deceased’s estate, including:

The date of death – this is related to the timings of administering the deceased’s estate.
Whether the deceased was domiciled in the UK or not – for any claims under the Inheritance (Provision for Family and Dependents Act 1975), the deceased must have been domiciled in England or Wales.
Whether there is a will or the deceased died intestate (without a will).
The names of the executors/administrators who will act as defendants to any claim on a will or estate being contested.
The net value of the deceased’s estate.
The date probate was granted. Any claims under the above Act must be made within six months of the date probate is granted.

Having the date probate was granted will also give family and/or beneficiaries an idea of how long before they are likely to receive their inheritance.

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 a 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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