Probate Solicitors

Many people are unsure about what probate is, and whether they will need it after their loved one has passed away.  At Cartwright King, our specialist probate solicitors can help you with any queries you may have.

You can contact our expert wills and probate solicitors today on 03458 941 622 or request a call back online and we will call you.

What is Probate? 

Probate is a collective name for the legal process of dealing with someone’s estate after they have passed away. If somebody passes with a valid Will, then you can apply for a Grant of Probate. If somebody passes away without a Will, then you apply for Letters of Administration. There are also other types of Probate that we might apply for, however, this depends on the circumstances surrounding the Will, or lack of one.

Once probate is granted, assets can be released to the beneficiaries. Whether or not Probate is necessary will depend on the total value of the estate, and whether the assets were held solely in one name or jointly with a partner before the owner passed away will also play a part in determining whether Probate is necessary.

It will be up to the Executor/s of the will to carry out the probate process. They will be responsible for gathering assets, paying out debts and bills and then distributing what is left according to the wishes outlined in the will.

If you have been appointed executor of a loved one’s will and you aren’t sure where to start with probate, our probate solicitors can help you.

Probate Procedure 

If the estate that you are in control of is considered to be a ‘small estate’ – meaning their assets add up to a value of around £15,000 or less – probate will more than likely not be necessary. However, all banks and financial institutions have their minimum probate threshold, so you will need to check what this is to find out if you will have to apply for probate.

In the probate procedure, there are five main steps that you will have to complete. These are:

• Step One – Identify all assets, including; property, investments and possessions, and all liabilities, including; debts and bills. Assess these to determine the total value of the estate.
• Step Two – Pay any Inheritance Tax necessary to HMRC, submit an Inheritance Tax return form whether you had to pay any or not, and apply to the Probate Registry for the grant of representation which confirms your legal authority to administer the estate.
• Step Three – After receiving the grant, you can sell assets, settle liabilities and pay any final administration expenses such as income tax or capital gains tax.
• Step Four – Prepare the estate accounts which document are payments in and out of the estate to show to balance that remains to be distributed among beneficiaries, then send the details to the Will executor/s for approval
• Step Five – If there are no challenges, the final step is to transfer assets to the beneficiaries of the Will

Probate Procedure When There Isn’t a Will 

Nearly 70 percent of adults in the UK die without making a Will. Because of this, it is important to know how probate works if your loved one dies without a Will.

When somebody makes a Will, they appoint an Executor to be in charge of their estate. When somebody passes away without having made a Will, then the person who will be in charge of managing their affairs is known as an Administrator.

In this case, the law will determine who the person’s beneficiaries are, and then one of these must apply for a ‘Grant of Letters of Administration’ to become the Administrator who will be able to act in the same way as an Executor would.

The person who is appointed as an Administrator is determined by the rules of intestacy. If your loved one has passed away without leaving a will, our UK Probate solicitors here help you establish if probate is necessary and help you if it is.

Probate and Inheritance Tax 

In the same way that not every estate will have to pay for Probate, not everyone will be required to pay Inheritance Tax. However, unlike the probate threshold, the Inheritance Tax threshold is set by the government.

Currently, the tax-free threshold is £325,000 for Inheritance Tax. This is called your Nil Rate Band, and Inheritance Tax is currently set at 40% of your taxable estate over your Nil Rate Band.

If someone has died on or after 6th April 2017 and they owned their property, then their estate may be entitled to a higher threshold. This is called the Residence Nil Rate Band, and the current value of the Residence Nil Rate Band is an additional £150,000 per individual; however, this has increased to £175,000 in the 2020-2021 tax year. To qualify for the Residence Nil Rate Band, the deceased must have left their home, or at least a share of it, to their direct descendants.

There are also specific Inheritance Tax rules for married couples. In short, if you are married, or in a civil partnership, and you leave your whole estate to your surviving spouse, then there is no Inheritance Tax to pay on the death of the first person. If this is applicable, then after the death of the surviving spouse there will be two Nil Rate Bands and Residence Nil Rate Bands to use before any Inheritance Tax is payable.

Inheritance Tax and Charity Gifts 

If you should choose to leave a gift in your Will to charity, then it will be free of Inheritance Tax under UK law. Furthermore, if you decide to leave 10% of your taxable estate to charity then this will reduce your Inheritance Tax from 40% to 36%.

If your estate is worth more than £325,000 and you do not qualify for the Residence Nil Rate Band, then the likelihood is there will be inheritance tax to be paid.

If you are an Executor or beneficiary applying for probate, you will need to pay any inheritance tax to HMRC before the court will issue a grant of probate to you. This means that until you pay all Inheritance Tax that is owed on your relative’s estate, you cannot have access to it.

Probate Valuation 

When you first apply for probate, you will need to value the money, property and possessions of your relative. There are three main tasks that you will need to carry out when you value their estate. These are:

1. Contacting organisations such as banks, mortgage or loan providers and utility providers regarding the person’s assets, loans and debts.
2. Estimate the gross value of the whole estate, including any ‘gifts’ that have been given and are worth over £3,000 per year for the past seven years.
3. Report the value of the estate to Her Majesty’s Revenue and Customs (HMRC).

Valuing an estate can take between six and nine-month. Without a valuation of the estate taking place, no assets will be able to be released, so it is advisable to begin as soon as possible and a probate solicitor will be the best person to assist you throughout the process.