Probate

PROBATE – CROYDON SOLICITORS

When someone dies, their estate has to be dealt with according to their will or intestate laws.  Usually, the person responsible for this is the executor, although this is frequently not the case.

What is probate?

The term probate describes the management and distribution of estates after someone has passed away.

To manage the estate, documentation is necessary.  The document which entitles someone to deal with a deceased person’s estate is called a grant of representation .

There are three types of document:

  • Probate – issued to executors named in the will.
  • Letters of administration – issued where no executor of the estate is named in the will or executors, for one reason or another, do not wish to act in an executor capacity.
  • Letters of administration – where letters of administration are not covered in the will or the will is invalid.

Any company, organisation or person which deals with and holds the assets of the estate will want to make sure that the person distributing the assets in the will (usually the executor) is authorised to do so.  If the amount of money held is small and insignificant, a grant may not be necessary.

Is a grant always necessary?

As suggested above, a grant is not always necessary where the amount held is insignificant or the organisation or person holding the assets does not require a grant.  Building societies and insurance companies commonly do not require a grant.

If the executor wishes to sell or transfer assets (particularly land), a grant will be necessary.

If a house is co-owned and the executor is the co-owner, a grant will not be necessary.

Who can apply for a grant?

Grants cannot be issued to anyone aged below 18.

If there is a valid will which has named executors, and the executors are happy to act in that capacity, they are entitled to a grant in the first instance.

If there are no executors in the will and/or the will is invalid, any person who is entitled to all of the estate or remainder of it will be entitled to apply.

Next of kin will also be entitled to apply dependent on whether any persons as described above exist.  There is a hierarchy of next of kin, determining the order of entitlement.  This hierachy of entitlement is:

1.       Spouses

2.       Sons and/or daughters

3.       Parents

4.       Siblings

5.       Other relatives

In some cases, multiple people may be entitled to apply.  In this case, the application will be jointly made, although only a maximum of four people may apply

Probate application

There are five steps involved:

  • Getting applications forms from a local Probate Office
  • Choosing where to be interviewed.
  • Completing the application forms.
  • Returning the application forms, along with the will and death certificates to the Probate Registry.
  • Attending the interview. The interview will establish your eligibility.

Probate can be a fairly involved and confusing process.  To make sure you take the rights steps and understand where you stand, plerase contact us.

FAQs about:
Probate

What does the term probate mean?

This term normally applies to the right to deal with a person’s after a successful application. It is also sometimes called ‘administering the estate’. An executer is the person appointed to deal with the deceased’s persons affairs.

If the person who has died leaves a will

It is possible for one or more executors to be named in a will. This is normally so that one executor can monitor another to see they are acting in good faith.

What steps would the executor then take?

First the executor would apply for a grant of probate through the probate registry which is located in certain courts.

If the court are satisfied that the executor is who he claims he is given a legal document which confirms their authority to deal with the estate. They can use it to manage the deceased’s property, money and possessions. They will also be able to use it to show they the right to access funds, and collect and share property with those specified in the will.

If the deceased did not leave a will

If the deceased did not leave a will, then a relative of the deceased can apply for a ‘grant of letter of administration’. This is another word for probate in the case that a will has not been left.

If the grant is awarded then the relevant persons granted the letters of administration will be known as administrators. This document is, much like the grant of probate, a legal document which confirms the administrator’s authority to deal with the deceased’s assets.

Are grants of probate/letters of administration always needed

A grant is almost always needed if the deceased leaves £5,000 or stocks/shares or certain insurance policies or property or land held in common.

In general most institutions such as banks will need to see the original grant before passing over control of the assets. However smaller organisations such as insurance companies may release money using their discretion.

When will a grant not be necessary?

Where the person who died left less than £5,000 or owned everything jointly with someone else and everything passed automatically over to the other spouse.

In order to ascertain whether the assets can be managed without a grant, the executor or administrator would need to write to each institution disclosing the death has taken place and including a photocopy of the death certificate and Will (if there is one).

Will inheritance tax be due?

Probate will not be granted to the representative until some or all of any due Inheritance Tax is paid.

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