It’s never easy when a loved one passes away. It’s even more difficult when you have some level of responsibility hanging over you as the administrator or executor of an estate. The process can be made unnecessarily complex for a number of different reasons, making what is already a difficult time even more so. This article is going to talk more about how you can deal with the financial affairs of someone who has passed away and why, if you are an estate administrator, there are benefits to using probate online.
What is the Role of an Estate Executor or Administrator?
Executors and administrators of an Estate are usually appointed through a valid Will or by the Court. When you are the administrator of an estate you have several different responsibilities. These include but are not limited to the following:
- Identifying all of the financial documentation which belonged to the person who passed away.
- Sending a copy of the death certificate to the different organisations who are responsible for holding money for the individual who has passed away. You will need to ask for official confirmation about how much money is in the specific account that belonged to the deceased. You will also need to ask these companies to freeze the bank accounts so that no money can be taken from them anymore.
- You will then need to open a bank account on behalf of the estate that you are acting as the administrator of.
- Find out more about what money is owed to the estate.
- Find out more about what money is owed by the estate.
- Put together a detailed list of the different assets that make up the estate, such as money, possessions and different debts.
- Work out how much inheritance tax you owe and then arrange to pay it.
- Prepare and send off documents which are required by the probate registry and that HM Revenue and Customs may also need.
- Once the probate letters of administration have been granted you will then need to collect the money which belongs to the estate from the bank and other companies that hold the deceased’s funds.
- Pay off the debts and expenses which are owed by the deceased.
- Share out the remainder of the estate as has been set out in the Will or according to the rules of intestacy.
Probate and Letters of Administration
To carry out the above responsibilities you are going to need to obtain either probate or letters of administration. The one you need will vary depending on whether or not there is a Will in place.
Probate
If there is a valid Will in place then this will name somebody as an executor. If you have been named as an executor then you need to apply for probate. Probate is a legal document which gives you the necessary authority to share out the estate, pay off debts and distribute assets to the relevant parties. You do not always need probate in order to deal with the estate, it depends on the value and the means by which the deceased owned certain assets; however, generally speaking, you will need it.
Letters of Administration
If you are an estate administrator then you need to apply for letters of administration, which is just another term for probate when there hasn’t been a valid Will left by the deceased. Letters of administration are also needed if there are no executors named within the Will or the executors that have been named are not prepared to act.
There are strict rules in place that lay out who can and who can’t be an administrator. If there is a Will in place then you can apply for letters of administration so long as:
- The person who has passed away has left all of their estate to you; and
- There are no executors in the Will or they cannot be named or are unwilling to act.
On the other hand, if there is no valid Will in place and you are the next of kin then you can apply for letters of administration so long as:
- You are married or the civil partner of the person who has died.
- You are one of the children of the person who has died.
- You are one of the grandchildren of the individual who has passed away.
- You’re the parent of the deceased.
- You’re a sibling of the deceased.
- You are one of the nieces or nephews of the deceased.
- You are another relative of the individual who has passed away.
The Benefits of Using Probate Online
As mentioned above, the process of distributing an estate can be complex and applying for probate or letters of administration can simply add to these complications. As such, you should work with probate companies who are going to be able to guide you every step of the way. One of these is Probates Online, which has a team of experts on hand that will be able to assist you with whether or not you need probate or letters of administration and if so, how you can go about obtaining them.
You know you are in safe hands when working with us as we are authorised by the ICAEW to carry out non-contentious probate work. We are also able to prepare the necessary court and HMRC forms that you need when applying for probate or letters of administration and will be able to file these online on your behalf. Finally, when you work with us, our costs are low and fixed so you know exactly what you are going to be paying.
If you need any kind of help with probate then be sure to reach out to us at Probates Online. If you have any questions or require any further information then do not hesitate to get in touch.