When someone dies, there are steps which will need to be taken to deal with their estate. A person’s estate is typically all the money and property owned by them at the date of their death.
What steps are required to deal with their estate will depend on many factors, including:-
- Whether they left a valid Will or died without one.
- Whether a Grant of Probate of a Grant of Letters of Administration is required; and
- Whether their estate is liable to inheritance tax (IHT).
Where there is a valid Will
Where a person leaves a valid Will at the date of their death, that Will will usually appoint the people who have authority to deal with their estate, known as “executors”. One or more people can be appointed.
The executors will be the ones who will need to apply for the Grant of Probate (if required) and deal with the administration of the estate.
Intestacy
If a person did not leave a valid Will, then the law will govern who is entitled to deal with the administration of their estate. This is commonly known as the “rules of intestacy”.
For information on what happens if you die without making a Will, see our intestacy flowchart.
What is a Grant of Probate or Grant of Letters of Administration?
A Grant is a legal document which gives the executor or administrator the authority to deal with and distribute a deceased’s estate.
There are many different types of Grant, the main ones are:-
- Grant of Probate – used where someone died leaving a valid Will; and
- Grant of Letters of Administration – where someone died intestate.
A Grant will usually be required where the deceased’s estate is greater than £5,000. However, this is dependent on the type of assets they held at the date of their death, and whether those assets were held solely or jointly.
The application process for applying for a Grant will depend on:
- The type of Grant needed;
- The size of the deceased’s estate;
- Whether IHT is due from the estate.
The executors or administrators will need to make the necessary enquiries into the deceased’s estate to ascertain their assets and liabilities before making the application to the Court for the Grant accordingly. If IHT is due, this will need to be paid before the Court will issue the Grant.
What does the executor or administrator need to do next?
After obtaining the Grant (if required), the executors or administrators will then need to deal with the administration of the estate. This includes:
- Collecting the assets of the estate, including any bank accounts, investments, property or shares;
- Settling any liabilities that were outstanding at the date of death, or any which have been incurred during the administration of the estate;
- Calculating and reporting any tax liability to HM Revenue and Customs, such as income tax or capital gains tax; and
- Distributing the estate in accordance with the terms of the deceased’s Will or the rules of intestacy if they did not leave a Will.
- Providing a formal document called an estate account to provide to the residuary estate beneficiaries.
How we can help?
Here at Sydney Mitchell, we have a dedicated team of experts, including specialists who deal with high net worth and complex estates (which may include business or agricultural property), who can assist with any or all the formalities set out above. We can provide you with advice at each stage to ensure all the necessary steps have been taken to deal with the person’s estate correctly. Please get in touch with a member of our team for further information.
Talk to us about Probate Law today. Call our experienced Probate team on 0121 698 2200 or alternatively submit our online contact form.
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