Vive Kumar Singh, Author at Probates Online

Legal Aspects of Probate Property Sales in the UK: A Comprehensive Guide

Posted on November 3, 2023 by Vive Kumar Singh

Navigating the complex world of probate can be daunting, especially when it involves the sale of a deceased person’s property. However, understanding the legal aspects of probate property sales is crucial for executors, beneficiaries, and potential buyers. In this comprehensive guide, we’ll dive into the intricacies of these legal aspects of probate property to help you make informed decisions during this challenging process.

1. What is Probate Property?

Probate property refers to assets, particularly real estate, that belonged to a deceased person. Before assets can be distributed to heirs or sold, they may need to go through probate. This ensures that the deceased’s debts and taxes are paid, and assets are distributed according to the deceased’s will or, in the absence of a will, the law.

2. The Legal Aspects of Probate Property – Initial Steps

One of the primary legal aspects of probate property is obtaining the Grant of Probate or Letters of Administration (if there’s no will). This document, issued by the Probate Registry, authorises the executors or administrators to manage the deceased’s estate, which includes selling property.

When a property is part of the probate process:

Valuation: Before any sale, the property must be accurately valued. This valuation becomes part of the Inheritance Tax assessment.
Tax Implications: Once the property is valued, any Inheritance Tax owed must be calculated and paid. The amount depends on the overall value of the estate and any available reliefs or exemptions.

3. Selling Probate Property

With the correct permissions in place, the executor or administrator can proceed with the sale:

Market Listing: As with any other property, probate properties can be listed on the open market. They can be sold through estate agents or auctioned, depending on what is deemed most suitable for the estate.
Contracts and Exchange: Once a buyer is found, and a price agreed upon, a contract is drafted. The exchange of contracts signifies a legally binding agreement between the seller and buyer. At this point, the buyer pays a deposit, and a completion date is set.
Completion: On the completion date, the balance of the purchase price is paid, and the property’s ownership is transferred to the buyer. The proceeds from the sale will go into the estate and used to settle debts, pay any taxes, and finally, distribute to the beneficiaries.

4. Key Legal Aspects of Probate Property Sales to Remember

The unique nature of probate sales means there are some distinct legal aspects to consider:

Potential Delays: The probate process can be lengthy, which can impact the timeframe for selling the property. Potential buyers must be aware that the legal aspects of probate property sales often cause delays compared to standard property transactions.
Transparency Requirement: Executors and administrators have a legal duty to get the best price for the property. This ensures that beneficiaries receive the maximum inheritance. Regular property valuations and transparent sale processes are essential.
Property Maintenance: Until the property is sold the executor or administrator is responsible for ensuring it’s well-maintained and insured. This ensures that its value doesn’t diminish, affecting the overall value of the estate.

5. Potential Challenges

Navigating the legal aspects of probate property can be challenging. Some potential hurdles include:

Disputes: Beneficiaries might disagree with how the property is being managed or the sale price. Clear communication and transparency are crucial to avoid disputes, or to resolve them if they arise.
Property Condition: Often, probate properties may have been unoccupied for a long time, leading to maintenance issues. Executors should ensure they are addressed to achieve a good sale price.
Market Fluctuations: The probate process can take time, during which property market conditions might change. Executors must remain aware of the market trends to make informed selling decisions.

6. Conclusion

The sale of a property in probate requires careful navigation of its unique legal landscape. While the fundamentals of selling remain similar to any property sale, the legal aspects of probate property sales bring about specific responsibilities and potential challenges for executors and administrators.

Whether you’re an executor, a beneficiary, or a potential buyer, understanding the legal aspects of probate property is crucial. It ensures that the process is handled correctly, ethically, and in the best interests of all parties involved. By arming yourself with the correct information, you can approach probate property sales with confidence and clarity.

Here to help

Navigating probate can be complex, but we’re here to help. Complete our contact form, and we’ll aim to call you back within a few hours. Alternatively, reach out directly on 01603 552028 or email us at hello@www.probatesonline.co.uk. Don’t navigate this journey alone; let our experts guide you.

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International Assets and Probate: Navigating Cross-Border Inheritance

Posted on October 23, 2023 by Vive Kumar Singh

It can be a stressful time when a loved one passes away, not only because of their actual passing but because their estate needs to be distributed to the necessary recipients. When doing this, an estate needs to go through the probate process, which is becoming ever more confusing as more and more people now own assets in various countries.

What Is Probate?

Throughout England and Wales, the word probate is usually used in order to describe both the legal and financial process which is involved in dealing with property, possessions and money of the person who has passed away. The probate process is necessary in order to prove that a will is valid and also to confirm who has the authority to administer the estate of the individual who has died. Prior to the next of kin or the executor who is named in the will be able to claim, transfer, sell or distribute assets, they will likely need to apply for a grant of probate, which is a legal document that is needed to access bank accounts.

Having Assets in Multiple Countries

It is becoming a lot more common for people to own assets in various countries because a lot of people own holiday homes and also have shared bank accounts, shares and other investments overseas. As such, when a person dies and they own assets in multiple different countries, it can be very difficult for the executors and the lawyers to know exactly how they should go about dealing with it. As cross-border inheritance and taxation issues have to be taken into account, foreign estate administration is hard work and can be incredibly complicated.

How Do You Deal with the Estate of Someone Who Had Assets Overseas?

When it comes to dealing with foreign estate administration, you are likely going to need to consider enlisting the help of an expert in probate who has experience working with cross-border administrations. When a person dies who owns assets in multiple countries, the document that was previously mentioned – a grant of probate – will be required for each of the countries the assets were owned. Of course, it may not be called a grant of probate in other countries, but its equivalent will be needed. This process is going to vary from country to country and the steps which need to be taken in order to acquire the necessary documents are also going to vary, which means they could be more complicated.

For instance, say you have an individual who has passed away that owned assets in both England and Spain, If this is the case then it will be necessary to go through separate procedures to release the necessary assets. The probate process in Spain means that the beneficiaries of the Spanish estate are going to have to arrange for a Spanish Deed of Inheritance to be prepared and then filed with a Spanish Notary before the estate is released to the relevant beneficiaries. Then on the English end, a separate procedure is going to need to be followed to obtain a Grant of Probate so that the English assets can be released to the relevant people.

This varies depending on the countries involved though. For instance, if assets are in New Zealand and England then it usually will not be necessary to go through the whole probate process in each jurisdiction. This is because the Colonial Probate Act means if a grant is obtained in New Zealand then that same grant can be ‘re-sealed’ in both England and Wales. This applies to a number of countries including Australia, Canada, New Zealand, Singapore, South Africa, Hong Kong, Malaysia and Jamaica.

Why Is Dealing with Assets in Multiple Countries So Difficult?

When someone passes away and they have assets in multiple countries, it is likely going to be the case that more than one of those countries’ laws apply to the estate. It is also likely going to be the case that more than one of those countries Will’s could apply to the estate as well. The different laws in different countries can more often than not contradict one another and also contradict different parts of the estate.

A good example of such contradictions can be seen in the likes of Spain, Italy and Germany, all of which are common countries for people in England and Wales to have other assets. These are different because they do not recognise the concept of having a personal representative. So, contrary to England and Wales where an executor will need to be appointed, this will not be recognised in Spain, Italy and Germany.

For every country that the deceased owned assets, the different concepts, laws and inheritance tax rules are going to need to be applied in relation to every country that is involved.

What If You Are the Executor of an Estate with Assets in Multiple Countries?

If you have been appointed as the executor of an estate for a deceased loved one who had assets abroad then you should be sure to take advice from probate experts who will be able to let you know if additional documentation is required and if so, what steps you need to take in order to obtain that documentation. Be sure to act quickly when trying to find an expert as there are many out there and you are going to want to work with someone who is right for you.

Do You Need Help with the Probate Process?

If you need help with the probate process then you should be sure to reach out to experts at Probate Online. Our team will be able to sit down with you and provide any advice that you might need when it comes to learning more about the probate process and understanding what to do if the deceased had multiple assets in various countries. If you require any further information or have any questions then please do not hesitate to get in touch.

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The Future of Probate Properties in the UK: Trends and Predictions

Posted on October 11, 2023 by Vive Kumar Singh

There are always going to be trends in different markets and industries, regardless of how well-established those markets and industries might be. For instance, there are a number of laws and regulations surrounding probate properties which establish the process well; however, there are still changes, trends and subsequent predictions that can be made about the industry. This article is going to talk in more detail about the future of probate properties as well as contentious probate as there are many developments which are likely to occur between the end of 2023 and 2024.

What Is Probate?

Probate is the legal process that takes place after someone passes away. It involves validating their will (if they have one) and distributing their assets to the rightful heirs or beneficiaries. The will is verified and executors are appointed appropriately, any assets that make up the estate will be sold to settle liabilities, whilst other assets are passed on to the correct recipients. Probate also takes place if there isn’t a Will, but slightly differently as if there isn’t a Will in place then the individual is said to have passed away intestate, which means that the court will be responsible for appointing an administrator to see over the estate. Laws of intestacy will be applied to work out who will be rightly inheriting within the estate.

What is Probate Property?

Probate property doesn’t just apply to houses but instead applies to any assets which make up the estate of the deceased. The title can apply to property which will be distributed as per that laid out in the Will; however, it will also include assets that are left by an individual who passes away without a will.

Assets which are jointly owned (otherwise known as tenants-in-common) are also subject to probate. This usually applies to the likes of real estate as a lot of people, especially those in a relationship, jointly own their properties as opposed to owning them individually.

That being said, not all assets will pass through probate as those with a beneficiary designation will simply pass directly to whoever that beneficiary is outside of the probate process. This tends to apply to the likes of life insurance policies and retirement accounts.

Examples of Probate Property

There are many different assets which are subject to probate. Essentially, they will be subject if they are titled in the name of the person who has passed away and are not jointly owned, not payable on death and do not have any kind of beneficiary designation. It’s worth noting too that assets which are left out of a trust are also always subject to probate.

Some of the most common examples of probate property include:

Jewellery
Real Estate
Stocks and shares
Bank accounts (and other financial accounts)
Vehicles
Collectables
Business assets
Personal property

Overall Trends Throughout the Market

On the whole, the market value of the wills, trusts and probate sector increased by a moderate 4.3% throughout 2021, which means that there were a lot more probate properties available and more sales going through. 2022 also saw a growth of 5.2% which means this positive trajectory isn’t showing any means of slowing down anytime soon. In fact, the market as a whole is expected to continue to increase by an average of 4% every year. Work involving probates is also going to increase as a result, which includes the likes of valuing properties, selling them and also settling any disputes which may arise throughout the probate process.

The Value of Estates

Another common trend that we are seeing is that the value of estates is steadily decreasing. This is interesting when the rate of inflation and general price of things is considered, people would expect estates to increase in value as opposed to decrease. As of 2021, the average estate was worth about £167,000. This number decreased by £13,000 in 2022 and is currently sitting at about £154,000. There is a clear trend here which shows that the value of probated estates is starting to decrease about 45% of estates are now worth £50,000 or less, which is a 5% increase from 2021.

Death Rates

2020 recorded the highest number of deaths in total since 1838. The global pandemic impacted a large number of people and this can be seen in these death rates given one in eight of the deaths was due to COVID-19, in fact, COVID was the leading cause of death in both 2020 and 2021. Other common killers include the likes of heart disease, stroke and lung cancer, and even though these were overshadowed by COVID-19 throughout these years, deaths caused by them are still 10% higher than they were in the years prior to the pandemic.

Increased Use of Technology

Technology is now used a lot more frequently in various markets and as such, it isn’t surprising to hear that it is also being used a lot more when it comes to probate. Granted, the Wills and Probate sector has been relatively hesitant to change but the pandemic forced an increased reliance on technology for law firms and other organisations involved in the process. It means that not as many face-to-face appointments take place, there are video wills available and different documents can be signed electronically (which used to have to be done in person). Given the convenience and efficiency that comes with the increased reliance on technology, it is hardly a surprise that this is a trend we are likely to see only be used more.

Do You Need Help with Probate?

If you currently need assistance with probate and the probate process as a whole then there are experts on hand who are willing to help. At Probates Online our team is on hand to provide you with any assistance you need and can also simply provide advice if you need it. Should you have any questions or if you require any further information then please do not hesitate to get in touch.

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Probate and Family Businesses: Succession Planning and Challenges

Posted on September 25, 2023 by Vive Kumar Singh

There are many things that people are going to want to leave to their loved ones when they pass. A lot of the time, these items usually include the likes of property, funds and valuables; however, if you own a business and want to keep that business in the family, then you are likely going to want to pass on shares and ownership of your business. The probate process can be a complicated one and as such, to smooth it out as much as possible, one of the best things you can do is effective succession planning. This article is going to talk in more detail about Probate and Family Businesses and its impact on Succession Planning.

What is Probate?

To put it plainly, probate, in England and Wales, is the word which is normally used to describe both the legal and financial process which is involved when dealing with anything that makes up the deceased estate. This includes the likes of property and money, or in this case, the ownership of a business. The probate process involves proving a will is valid and also confirming who has the authority to distribute the deceased assets effectively. Before any goods can be transferred, the probate process needs to be completed, and the first step is to obtain a grant of probate.

What is a Grant of Probate?

A grant of probate is a legal document which is needed in order to access the various assets that make up an estate of someone who has passed, such as bank accounts. It is also necessary for the executor of a will to settle the debts and liabilities which are owed to people.

It’s worth noting that this document is only ever referred to as a grant of probate if a Will is involved, which if you are interested in succession planning, there should be. If there isn’t a will involved though then the document is referred to as a grant of letters of administration. It basically does the same thing, it just has a different name under the law.

When probate has been granted, it will be up to the next of kin or the executor to begin to deal with the individual’s assets. This is where good succession planning will be needed to make sure that the family business can be passed on without any further complications.

Why Can Succession Planning Be So Difficult?

One of the questions which is commonly asked by people who own a family business is why succession planning can be so difficult. It’s normal for people who own a business to want to pass it on to the next generation. A lot of issues can come into play when this happens though, for instance, it might be difficult for the senior generation to pass on the business, there might need to be funds withdrawn from the business to smooth over the transition, and the timing might not be right. Businesses also need to think about tax and whether what they are thinking of doing is the most tax-efficient thing.

What Are the Main Problems?

One of the main problems is working out how the senior generation can pass over ownership in the most efficient way possible. One of the most common methods is by gifting shares but this can be an issue if some value in the business needs to be kept to fund other things, like the continued running of the business or outstanding liabilities. A family business tends to be somebody’s life’s work and as such, a lot of their wealth is tied up in it, so when it comes to distributing assets in the will, if the whole business is simply given to one person, that might be disproportionate.

Another potential issue could be that the younger generation is not willing to take up the family business. There is going to be a lot of work involved and as such they might not be willing to take on the work which will be requested of them. Not to mention, there will be a lot of energy and drive needed to keep the business going, which is something that they might not have after a loved one passes.

Are There Any Solutions?

Yes, there are solutions available that families should consider doing when succession planning that might make things easier. One of the most prominent solutions is introducing what are known as freezer shares and growth shares. These work in the following ways:

Freezer Shares: This is where the shares that belong to the older generation (the deceased in this instance) will be frozen. Essentially, this means that their value will not decrease or increase.
Growth Shares: These would apply to the younger generation (or the person who is inheriting the business). The way they work is that they have an initial value of zero but then they will grow with the business in the future. They can act as a fair incentive for the younger generation to get involved with the business at such short notice.

Do You Need Help Throughout the Probate Process?

There is a lot that goes on after an individual passes away. Firstly, there is the emotional shock and the difficulty which comes with losing that loved one; however, on top of that, there are also issues surrounding how an estate should be dealt with and who will be receiving which assets. If you also throw into the mix the problems which arise when someone wants to pass on a family business, the whole situation becomes more complex than desired. As such, it may be a good idea to enlist the help of experts who will be able to provide guidance through the situation. At Probates Online, our team of experts are on hand to help you throughout what can be an incredibly difficult process. If you have any questions at all or you require any further information then do not hesitate to get in touch.

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Handling Conflict During the Probate Process: Mediation and Resolution

Posted on August 22, 2023 by Vive Kumar Singh

There are a number of different obstacles that frequently present themselves once a loved one passes away and their estate is distributed. When various estate disputes arise, trying to resolve them can be difficult as this is a period where emotions are high; however, such disputes must be dealt with promptly peacefully and fairly. When dividing an estate, there are plenty of challenges and as such, problems between siblings, other family members or ex-partners can arise. If your family is interested in trying to avoid these kinds of challenges, it can be easy to do so, so long as certain steps are taken in an effort to prevent different conflicts. The different means by which conflict can be resolved are going to be discussed in greater detail below.

Plan The Estate Properly

One of the first steps you should do when it comes to resolving the different issues that can occur throughout the probate process occurs before the death takes place. Proper planning goes a long way when it comes to the distribution of an estate as by having a Will which clearly outlines how the estate should be divided and where various assets should go, you are able to stop any unnecessary conflict from ever arising. The Will needs to be valid in order to avoid disputes, which means ensuring it is appropriately witnessed and is also validated. If at any point it appears the assets that make up the estate are divided unequally then the Will shall state the reasoning which will help avoid any unwanted estate disputes.

If Disputes Arise Consult a Mediator

Even if there is a Will in place, inevitably, disputes can still happen throughout the probate process. If this is the case and there is an ongoing disagreement that doesn’t look like it will be resolved then one of the first things you should do is hire a mediator. A mediator is an affordable way that you will be able to work out the various differences between both parties and try to find an amicable way to overcome them. A mediator will cost money but this will come to less than having a legal battle and they may be all that is needed in order to find a way out of the ongoing dispute.

Consider Potentially Liquidating Assets

A common problem that can arise in an estate is the value of different assets. For instance, if one child is given the family home, this might come to more than what is given to the other child, even if the parents try to divvy out assets as fairly as they possibly can. This can also be a problem when estates don’t have a Will in place because this can often mean there is no way to divide assets in a way that will be entirely equal for all parties involved.

One of the most effective ways that this conflict can be resolved is to liquidate the assets which make up the estate so that the proceeds can then be divided equally as they have a clear monetary value. Dividing up the money is a lot easier than dividing up the assets themselves and as such, this can be an excellent way to resolve any disputes which might arise.

Pick an Independent Fiduciary

If there is a Will in place then chances are there has been an executor named. An executor can be helpful when it comes to dividing up the estate; however, if they are not impartial then their appointment can also be controversial and lead to disputes. The person named as the executor in the Will does not have to carry out their duties and instead is able to decline the appointment so that they can then appoint an independent fiduciary. Some of the best options can be an estate-planning attorney or another lawyer who will be able to properly see out the role. If there is a chance for controversy because of who has been appointed as the executor, appointing someone independent to take care of things can stop disputes and keep everything neutral.

Divide Household Items in a Fair Way

Another common dispute happens not because of the value of certain items but because of the sentiment that they might hold. The dining room table is not just a figure, it is where various family memories were made, as such, more than one person in the family might want to keep it, and arguments can arise over who it should go to. When this happens, families need to find a fair way that they can divide household items so that disputes are kept to a minimum.

There is no right way to do this, and parties should be aware they likely won’t get everything they want in the division of household items. One of the best ways to go about splitting up the household items is for family members to take it in turns choosing what they would like to keep. There should be an order decided and then all family members will get the opportunity to go around the house in order to claim the different items that they would like to keep. There is a clear preference for whoever gets to go first and as such, a more risky but even fairer way to decide can be to write the disagreed items down and then use some kind of lottery system to assign them. Each person can pick a piece of paper and the items can be divided that way. Again, if disputes arise throughout this process, it could be best to get a mediator involved.

Do You Need Help Throughout the Probate Process?

As can be seen above, the probate process is complex and can lead to various disputes. If you need assistance throughout the probate process then you should consider reaching out to organisations such as Probates Online. Probates Online and our team of experts will be able to help you over these various hurdles. If you have any questions or require any further information then do not hesitate to get in touch.

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Digital Assets and Probate: Managing Online Accounts and Data

Posted on August 8, 2023 by Vive Kumar Singh

When somebody passes away, there are many different things which need to be done before their estate can be properly distributed to the necessary people. One of these is to apply for probate. This article is going to talk a bit more about what probate is, the probate application process and how digital assets work when passed on in a will.

What Is Probate?

Throughout England and Wales, probate is the word which is usually used in order to describe the legal and financial process which is involved when dealing with a deceased person’s assets such as property, money and possessions. The probate process means proving that a Will is valid and also confirming that the person in question has the necessary authority in order to administer the estate of the deceased. Before anyone is able to transfer, sell or distribute any of the assets which are contained within the will, they will need to apply for a grant of probate.

What is a Grant of Probate?

So, what is a grant of probate? A grant of probate is a legal document which is needed so that the executor is able to access the various assets which make up the deceased’s estate, as well as clear debts that the deceased might have owed before passing away. It’s worth noting that the document will only ever be called a grant of probate if the deceased has a valid will in place, if not then it will be called a grant of letter of administration. Both of these documents work in the same way, simply giving legal authority so that the executor is able to deal with the estate of the individual who has passed away.

Digital Assets in a Will

When putting together a Will, people tend to think about physical assets such as their house and possessions; however, as a society, we have a lot more digital assets as well so these need to be factored into the Will. These can include the likes of eBooks, online photo albums and loyalty points. People are also purchasing parts of the internet now with the likes of crypto and NFTs becoming popular. So, how can these be factored into a Will?

What Are Digital Assets?

If you are going to include digital assets within your Will then it is important that you fully understand what digital assets are. They are anything that can be stored digitally and that comes with a right to use. Some of these assets can have sentimental value like an email address, social media account or cloud storage. There could also be digital assets that have monetary value such as cryptocurrency and online accounts like PayPal.

Not All Digital Assets Can Be Passed On

It is worth noting that not every digital asset you have access to you will be able to pass on as you might not actually own it. A lot of digital assets like social media accounts and streaming services aren’t owned by you, they are owned by the company that provides the service and then you just licence it. Many people believe they can just leave their login details to their executors but this will be a breach of the terms of passing the account details to another party. The same applies to the pin number which is attached to your debit card.

People should check the terms of the business they licence with in order to better understand what they can include in their will and what might happen upon their death. Some digital assets that you are more than likely going to be able to pass on are things which you have purchased, downloaded and which are stored digitally, this includes the likes of films, music collections and TV shows.

Passing On Digital Assets

So, what are some of the best ways that you can effectively pass on a digital asset? It depends on what you are trying to pass on, one of the most common are assets which have monetary value. These include the likes of:

Cryptocurrency

Given this is a monetary asset, it’s easy to simply include it in your Will. That being said, you should make sure that the right steps are in place so that they can be accessed, and this is where leaving instructions in your Will can get a little bit complicated. In order to access crypto, you need to have access to the private key, but this can’t be shared with anyone, including anyone in your Will, for security reasons. A good idea could be to leave step-by-step instructions for a safety deposit box.

PayPal

It’s possible for you to get money from a PayPal account after the owner of the account has died. PayPal will take instructions from the executor of the estate, so a grant of probate will be needed in order to prove that the executor has the ability to act on behalf of the deceased. Once that has been proven, PayPal is able to send a cheque in the name of the deceased account holder, alternatively, they could transfer it back to the bank account which is linked to the PayPal account.

Loyalty Points

Passing on loyalty points varies depending on what company they are for. The Tesco Clubcard and Nectar points can be transferred quite easily but then there are other schemes where it’s harder to get in touch with the company, or the company will simply not allow the points to be transferred.

Do You Need Help with Probate?

Navigating probate can be quite tricky and as such, if you need assistance with the best way to proceed then you should be sure to contact experts such as Probate Online. Our team of experts will be able to discuss your current situation and provide advice on the most effective way that you can move forward. If you have any questions then do not hesitate to get in touch.

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Key Differences Between Probate Sales and Traditional Real Estate Transactions

Posted on July 17, 2023 by Vive Kumar Singh

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

The Probate Process and the Impact It Has on Real Estate

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

Inheritance and Ownership

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

The Condition of the Property and Disclosures

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

Delays and Timelines

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

Financing and Considering Various Offers

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

Why Go for a Probate Property?

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

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

Do You Need Help with a Probate Property?

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

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Common Challenges Faced in Selling Probate Properties in the UK

Posted on July 12, 2023 by Vive Kumar Singh

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

The Challenges

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

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

The Complications

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

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

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

How to Overcome the Challenges of Selling a Probate Property

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

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

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

Turn to the Experts

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

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

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

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

Do You Need Help with Selling a Probate Property?

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

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What Type of Assets are Subject to Probate?

Posted on June 20, 2023 by Vive Kumar Singh

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

Common Misconceptions

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

Assets That Don’t Require Probate

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

Jointly Held Assets

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

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

Low Value Assets

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

Assets Which Require Probate

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

Assets In the Deceased’s Sole Name

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

Investment Products

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

Life Insurance Policies

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

Foreign Assets

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

Business Assets

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

Do You Need Help with Probate?

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

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How Are Assets Valued for Inheritance Tax in 2023?

Posted on June 15, 2023 by Vive Kumar Singh

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

Why Does an Estate Need to Be Valued?

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

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

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

When is an Estate Valued for Probate?

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

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

Valuing the Estate for Inheritance Tax

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

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

Valuing Different Parts of the Estate

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

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

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

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

How Is an Estate Valued?

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

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

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

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

Do You Need Help with Estate Valuation

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

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