Vive Kumar Singh – Page 4 – Probates Online

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

Posted on September 19, 2022 by Vive Kumar Singh

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

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

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

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

Who Deals with the Estate?

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

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

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

The Role of the Executor and Administrator

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

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

Benefits and Tax

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

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

Debts

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

Probate and Letters of Administration

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

Probate

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

Letters of Administration

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

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

Do You Need Help Dealing with Financial Affairs?

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

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

Posted on September 12, 2022 by Vive Kumar Singh

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

What Is a Grant of Confirmation?

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

What if There Isn’t a Will?

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

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

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

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

Do I Need Assistance When Obtaining a Grant of Confirmation?

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

Confirmation in Small Estates

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

Confirmation in Large Estates

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

What Happens Once a Grant of Confirmation Has Been Obtained?

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

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

Do You Need Assistance with Administering an Estate?

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

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

Posted on August 30, 2022 by Vive Kumar Singh

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

What Is Probate?

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

What is a Grant of Probate?

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

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

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

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

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

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

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

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

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

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

Selling a Property Without a Grant of Probate

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

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

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

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Do I Need Probate if I have a Will?

Posted on August 19, 2022 by Vive Kumar Singh

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

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

When is Probate Required?

Whether or not probate is required will depend entirely on:

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

Joint or Sole Ownership of Assets

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

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

Joint Tenants
Tenants in Common

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

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

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

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

Asset Value

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

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

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

Is There a Valid Will?

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

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

Is Probate Necessary if there is a Will in Place?

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

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

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

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

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Procedure for Grant of Probate for Tenants in Common

Posted on August 18, 2022 by Vive Kumar Singh

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

What do we mean by tenants in common?

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

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

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

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

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

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

Grant of Probate for tenants in common

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

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

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

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

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

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

Declaration of Trust

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

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

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How much does Grant of Probate Cost in 2022?

Posted on August 2, 2022 by Vive Kumar Singh

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

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

What is probate?

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

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

However, there are cases where probate is not required:

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

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

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

There are other circumstances where letters of administration are required:

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

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

What is a Grant of Probate?

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

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

Applying for Grant of Probate Online

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

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

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

Grant of Probate cost

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

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

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

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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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Probate Application Progress and Tracking Progress Explained in the United Kingdom

Posted on July 18, 2022 by Vive Kumar Singh

In the UK, if a deceased person’s estate is in excess of £5,000, which it usually is if there is a property to be included in the value of the estate, the executors will have to apply for a Grant of Probate in order to manage the estate, settle any tax due with HMRC, value and sell the assets, and distribute the estate in accordance with the deceased’s wishes in their will.

The majority of probate applications are now made online via MyHMCTS (HM Courts & Tribunals Service), particularly since the pandemic. Since it was established in 2018, over 30,000 probate applications have been made via the MyHMCTS service. But how do you monitor probate application progress?

Applying for probate

If the deceased left a will, the executors apply for probate. Executors can be family members, trusted friends or solicitors, but they shouldn’t be beneficiaries. If there is more than one executor, the application for probate online should include all of the executor’s names. We should just point out that only the executors are allowed to apply for a Grant of Probate.

If the deceased did not leave a will, the next of kin, a close relative, or a solicitor must apply to the court for authority to administer the deceased’s estate. When they apply, they are requesting Letters of Administration that give them the authority to deal with probate. They are also known as the Administrator when managing the estate.

There are other circumstances where Letters of Administration are required, including:

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 do I need to apply for probate?

To apply for probate online, you should have the following information to hand:

The deceased’s original will, including any codicils (small additions to the will). It is recommended you have at least two copies of the will and codicils.
The death certificate or an interim certificate.
HMRC’s Inheritance Tax form (IHT205) duly completed, even if Inheritance Tax is not due.

You will need these physical documents as you will be required to send them to The Probate Registry once you have completed the online application.

If no Inheritance Tax is due, you will need to complete a different Inheritance Tax form, IHT205. You will also need this form if:

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

Tracking probate application progress

As well as applying for probate, MyHMCTS’ online probate service allows executors, administrators and solicitors to view their probate application progress and the forms they have via a dashboard. They are also able to monitor their probate application progress. According to HMCTS, the only documentation that needs to be sent to them is the original will, a copy of the death certificate and the completed Inheritance Tax forms.

To use MyHMCTS’s online probate service, you will need to open a Pay By Account (PBA) account. This links directly with MyHMCTS’s fee account system, where you are able to pay for your online probate application. Once registered as an executor or as an Administrator, you will be able to start and track your online probate application.

Once you have completed your online probate application and digitally signed the declaration at the end of the application, print off the declaration as you will need to enclose this with the documents you send to The Probate Registry.

Always make sure you keep a copy of each of the documents you are sending to The Probate Service and despatch using Royal Mail’s recorded delivery service. If you are sending a notarial copy or a court-sealed copy of the will, you will need to send a cover letter as well that details where the original will is being kept and the reason why it is not being released.

MyHMCTS keeps your probate 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 a good idea 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 lived 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 are acting 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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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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How to Find a Good Estate Planning Lawyer in the United Kingdom

Posted on June 23, 2022 by Vive Kumar Singh

As a loved one, family member or executor of a will, it’s never easy to manage the estate of a deceased person, particularly if you’re not familiar with all the legal terminology. If the estate (the deceased’s assets and possessions) is complex or large, it can be even more complicated.

In these situations, making use of a complete estate service relieves the burden and provides all the help you may need. Whether a Grant of Probate has already been obtained or not, when you use an estate service, you remain the executor, but the estate is administered on your behalf.

What is an estate?

An estate is everything you own; this includes cash in the bank, pensions and life assurance, investments and insurance policies, your property, jewellery, cars, furniture and ornaments, even down to your prized set of golf clubs.

Therefore, everyone has an estate, even if they think they don’t. If you own it, it is part of your estate, and with the help of a good estate planning lawyer, you can make sure your estate is managed according to your wishes.

What is estate planning?

Estate planning is a clear and detailed plan on exactly how you would like your estate managed when you die. It also sets out your funeral arrangements and how you would like to be looked after during your lifetime if you are incapacitated, whether that’s temporary or not. This is done through the use of a Power of Attorney within your estate plan.

Although having a will is a good step towards estate planning, it does not cover various other aspects of your estate. The problem is that a will is only suitable after your death; an estate plan ensures your wishes are upheld during your lifetime, too. A good estate planning lawyer will be able to make sure that you have covered everything you need to consider in your estate plan.

For example, you may want to exclude someone or some people from your will, and an estate plan will make sure that what you want is followed. There is also less of a chance of your will being challenged after you die.

Planning your estate also means that should you need long-term care during your lifetime, your wishes on your care, as well as your financial affairs, are carried out according to your instructions. Estate planning includes:

Lasting Power of Attorney – there are various types of lasting Power of Attorney, including a living will. They make sure your wishes are followed (even if it is a temporary hospital stay) and set out decisions for your ongoing health and welfare.
Children/family welfare – you can make sure that your children if under the age of 18 years are looked after by a named guardian and ensure provisions have been made for their care and financial matters. You can ensure that any members of your family that need long-term special needs care are looked after in the way you want.
Managing a business – if you run a business, you can set out a planned exit from the business for you and your family, if necessary.
Tax implications – an estate plan also helps to ensure your family and/or beneficiaries don’t pay any more inheritance tax than they need to. In some cases, you may also be able to ensure that other related costs are kept to a minimum, too.

What does a good estate planning lawyer offer?

A good estate planning lawyer will offer a service that goes beyond just handling the paperwork. It covers:

Confirming the eligibility of executors and applying for a Grant of Probate (if required).
Reviewing the validity of the will and other related documents, like an estate plan.
Considering applicable inheritance tax relief options relevant to the estate.
Assessing the nature, extent and value of the estate’s assets and liabilities for inheritance tax purposes.
Liaising with HMRC over the valuations of the estate’s assets and/or liabilities.
Collecting the estate’s assets, closing accounts and discharging any estate liabilities.
Liaising with asset holders on your behalf.
Arranging insurance for any property that needs to be safeguarded during the administration period.
Liaising with the Department for Works & Pensions regarding any liability arising from overpaid benefits or the ineligibility of benefits due to an oversight in providing full disclosure of capital or income.
Liaising with charities and their designated offices on your behalf (if required).
Discussing the basis of calculation of any past, current or future liability for inheritance tax, capital gains tax, income tax or any other taxes following an application for probate with HMRC.
Arranging for any statutory notices to be published in The Gazette and local newspapers, if required, to stop any challenges to the estate.
Arranging for the final distribution of the estate to named beneficiaries.
Preparing the final estate accounts covering the period of estate administration.
Stopping any unwanted mail addressed to the deceased and safeguarding against identity theft.

A good estate planning lawyer will work with you throughout the administration process and is always available with support and advice.

Benefits of using a good estate planning lawyer

There are a variety of benefits to using an estate planning lawyer, including:

Help shoulder the burden of managing a deceased’s estate.
Specialist probate solicitors who understand the administration process thoroughly.
Legal professionals who understand the legal jargon used in documentation.
Liaising with HMRC, insurance companies, pension providers and other representatives in settling any liabilities attributed to the estate. This includes closing any relevant accounts and obtaining life insurance funds on your behalf.
Understanding the different tax liabilities that an estate incurs, including any potential tax reliefs that can be applied to reduce the tax burden.
Completing and filing all the necessary documentation on your behalf, including applying for Grant of Probate or Letters of Administration, if no will has been left by the deceased.
Ensuring all relevant tax exemptions and reliefs have been applied, that HMRC’s tax calculations are accurate and ensuring payment deadlines are met.
Collecting all the estate’s assets, obtaining valuations (if necessary), and distributing the assets in accordance with the deceased’s wishes. If no will has been left, they will organise equal distribution between family members.
Preparing and submitting final estate accounts that detail all estate transactions/payments, assets sold and distributed, debts settled and other related costs.

Probate is a time consuming, lengthy process, sometimes taking as long as a year or more depending on the complexity of the deceased’s estate. Although executors are entitled to manage the administration of an estate, any mistakes made in tax calculations or incorrect information on documentation will not only delay probate, it could hold you as the executor financially or legally responsible for the error.

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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