Probate is the judicial process whereby a Will is proved in a Court of Law and accepted as a valid legal document to enable the Executors or other persons to deal with the assets of a person who has passed away.
Even if there is no Will the rules of intestacy apply and a Grant of Representation must still be obtained in order to deal with the assets in the name of the deceased.
It is always a period of sadness, time for reflection, distress and grief but it is necessary to deal with the financial affairs and we at Lee & Co can help you through that difficult time to easy the burden of loss. Our staff are dedicated to help you with compassion and sympathy in the hope that they remove as much stress as is possible to deal with what has to be done.
On occasions it may not be necessary to apply to the Court if the assets are in the joint name of a beneficiary or form part of a Trust outside the Estate, but if any assets are in the sole name of the deceased then the following steps will have to be taken.
Administration of a persons estate
There are 14 steps to take
- Value the Estate
- Pay any Inheritance Tax
- Apply to the Court for a Grant of Representation
- Registration of the Grant,
- Placing the house and other property on the market for sale
- Advertise for Debts and Claims
- Realising the assets and obtaining the money
- Transfer any assets to the Beneficiary,
- Pay any Legacies and consider an Interim Distribution
- Pay the debts (if any) and tax owed
- Reconcile the money and prepare the Estate Accounts
- Prepare a Corrective affidavit and Returns to Inland Revenue if necessary
- Obtain Clearance Certificate from the Inland Revenue if necessary
- Distribute the Estate.
The whole process is commonly known as “administration” and can take from six to twelve months or longer depending on the how complicated the situation is.
A person’s estate includes everything they own or is registered in their sole name and cannot usually be dealt with until an order of the Probate Court is obtained.
Within 5 days of the death it must be registered by a relative at the Registry Office. The Birth Certificate of the person may need to be produced together with their National Insurance Number. Identity evidence of the person registering the death will also have to be produced to the Registrar.
Notice should then be given to various authorities which can sometimes be done by taking advantage of the service offered by the local authority known “Tell us once service”. A form will be provided at the Registry Office. If this Is not available to you, we can assist and do it for you.
This notice automatically notifies the Inland Revenue, Department of Works and Pensions, Passport Office, Local Council, Driver and Licensing Centre, Veterans UK and any Public sector and armed forces pensions.
An application to the Probate Court cannot be made within 1 month of the death during which time attempts can be made to value the estate.
Step 1 – Valuing the Estate
The value of the assets with each company, Bank, Building Society, Premium Bonds Office, Insurance Companies, Pension providers or other organisation with whom the person had investments, must be confirmed in writing.
The amount of the debts and liabilities (if any) including funeral arrangements have to be determined. This includes any income tax or if in business its assets and liabilities.
Insurance and other standing order/direct payments have to be assessed and dealt with at this stage.
Having gathered the information, the value of the estate can be calculated and the appropriate form completed to report the value of the assets and liabilities to the Inland Revenue.
Step 2 – Pay Inheritance Tax
If Inheritance Tax is payable it must be paid before any application to the Probate Court can be made.
Inheritance Tax is payable if the net estate is in excess of £325K but this tax free limit increases if resident in their own home and there are other allowances that can be claimed depending on the circumstances. Inheritance Tax is payable at the rate of 40% and must be paid within 6 months from the date of death to avoid penalties.
Step 3 – Application to the Probate Court
Having paid any Inheritance Tax the requisite forms are completed and application is made to the Probate Court for the grant of representation.
We must then wait for the Court to Grant the Order, which can take many weeks depending on the work load of the Court. It will however be usually issued within 3 months.
Step 4 – Registration of the Grant
Once the Grant has been obtained from the Probate Court it must be registered with each individual company, Bank, Building Society, Premium Bonds Office, Pension providers or other organisation with whom the person had investments.
This can take time depending how many organisations have to be contacted.
Step 5 – Place Property on Market for Sale
The Grant provides the authority for the Estate Agent to place any property on the market for sale and enables the appropriate conveyancing formalities to be complied with.
Step 6 – Advertise for Debts and Claims
If necessary, advertise in the London Gazette and local newspaper for debts alleged to be owing and for any claims. If none received within 2 months the estate can be distributed at the appropriate time.
This is essential if the deceased received benefits from the Government otherwise the representatives may be personally liable for up to 20 years during which time the DWP could make a claim.
Step 7 – Realising the Assets
Further forms are completed, and money obtained from each company and other organisations holding the investments and placed in a holding account with the Bank. If dwelling is sold the sale is completed.
This again could take time depending on the number of investments.
Step 8 – Transfer any assets to the Beneficiary
If any asset is to be retained by any beneficiary, the assets will be transferred, and if the dwellinghouse, then the appropriate forms are completed, and registered at the H.M. Land Registry.
Step 9 – Pay any Legacies and Consider an Interim Distribution
The payment of any monetary legacy and if dwellinghouse sold to consider payment of an Interim Distribution to the Beneficiaries .
Step 10 – Pay the debts (if any) and tax owed
Pay all debts (including Credit Cards etc) especially any overpayment of Social Benefits if known.
If appropriate complete Income Tax Returns and pay the Inland Revenue.
Step 11 – Reconcile the money and prepare the Estate Accounts
Reconcile all money received and debts etc paid.
Step 12 – Inland Revenue Corrective Affidavit and Forms
If the value of assets has increased or decreased substantially, it may be necessary to prepare and file a corrective affidavit and returns to the Probate Court and Inland Revenue. This could take 2 month’s minimum.
Step 13 – Clearance Certificate
If Inheritance Tax has been paid an application must be made to the Inland Revenue for a Clearance Certificate which confirms that there is no further Tax payable and the Revenue have closed the account. This could take a month or two before it is received from the Revenue.
Step 14 Distribute the Estate
If appropriate when the Clearance Certificate has been received, Distribute the Estate in accordance with the Estate Accounts.
If a Clearance Certificate is not required then on completion of the preceding steps to distribute the estate and pay the Beneficiaries, but it must be noted that this should not take place with in a period of 6 months from the date of death.
It should be noted that if third parties think they may have a claim against or challenge a Will they have 6 months to do so from the date of the Grant by the Probate Court.
It should also be recognised that depending on the complexities of the Estate it could take several months before a final distribution and it is not uncommon for more complex estates to take 12 to 18 months.
Funeral Expenses
Unless there is a funeral plan insurance in place, we can arrange for the payment of the expenses from the Bank account or building society account of the deceased person, prior to the Court Order, so that there is no embarrassment or liability on the relatives at the time of bereavement.
Fees to be paid
| Disbursements | Fee |
| Probate Application Fee plus copies | £273 |
| Bankruptcy Search Fee per person | £2.00 |
| Land Registry for Office copies and plan | £24.00 |
| Advert cost for post in L.E.Post / Guardian and London Gazette against any claims, if requested by you / Administrators. | Estimated £250 – £400 |
Our Charges
| Fixed Fees to obtain Grant of Representation only and you complete the administration | |||||||
| Value of Estate From | 0 | £50K | £100K | £325K | £500K | £750K | £1M+ |
| To | £50K | £100K | £325K | £500K | £750K | £1M | |
| Fixed Fees + VAT | £750 | £1250 | £2500 | £3500 | £4250 | £5000 | £6750 |
| Our Complete Administration Service depends on time involved at our hourly charging rate | |||||||
| Minimum Charges | £1,350 | £2,750 | £5,750 | £7,250 | £8,500 | £10,000 | £17,000 |
There is also a value element to be charged, being 1% of the gross value of the estate and 0.5% of the property value which may be charged depending on the importance of the matter and on any disruption by giving priority over other clients work.
Other Minimum Supplementary Fees if not Incorporated in Time Recording
Deed of Variation from £500; Arranging House clearance and supervision from £2500
Dealing with DWP claim from £250; Investigating & Providing Details to DWP from £500
If we are Executors in the Will and act accordingly we may also charge an Extra 0.5% of the Gross Value of the Estate.
It should be noted that if a dwellinghouse or other property is sold or transferred to a third party or a beneficiary, these costs do not include the conveyancing fees and disbursements including payments to the Land Registry which will vary upon the value of each property.
This guidance is given on the basis of an uncontested Probate and the exact cost will depend on the individual circumstances of the matter. For example, if there is one beneficiary and no property but one bank account, costs could be lower. If there are several beneficiaries, a property and multiple bank accounts or investments, the costs may be higher at the end.
Be assured that we will handle the full process for you as expeditiously as possible and keep the costs as low as possible.
Please call us we will be pleased to assist you. Contact here