Dealing with Probate

I appreciate there are a lot of articles about probate rolling around the world wide web, but I truly hope I have mastered breaking down the process to ensure that it is more understandable for those embarking on probate or those it may fall upon.

Probate is possibly one of the biggest responsibilities that could be asked of you.  It’s a little more complicated then ensuring that someone’s pet is taken care off.  And to top it all off it is a mind field so hopefully you’ll find this interesting and useful.  And where possible I have included the relevant links so that you can use this article as a resource.

Once you have been appointed as Executor for your friend or loved one it is your responsibility to distribute their assets after their death.  And it will never be an easy process – as you will also be coping with your own grief and suddenly you’ll be faced with mountains of paper work and you’ll need to be able to hold sensible conversations with businesses such as Banks, utilities and Local Authorities.

It has been our experience that banks have made this task even more onerous, with one bank asking to speak to the person to confirm their death! Yes, you read that correctly – one bank we dealt with actually asked to speak to the deceased to confirm that they had deceased – sometimes you just can’t make this stuff up!

When dealing with Probate it is likely you’ll need a Grant of Probate before you can distribute the estate – but this is not always necessary or the case.  It depends on whether the deceased’s assets are jointly owned and if they will automatically transfer to the surviving owner.

How the process should work

The task of probate can be laborious, and the process can vary depending on which organisations you deal with.  We know from personal experience that Santander (formerly Abbey National) can be quite difficult to deal with, and don’t get me started on the Post Office Money!

However, the key stages are:

1.    Assess how much the estate is worth. This may mean working through the deceased’s papers and approaching companies for account details including credits and debits – you will need proof of identity and that you are the nominated person responsible for dealing with the estate.

2.    Apply for probate. If you live in England, Wales or Northern Ireland you will need to complete a PA1 form, or in Scotland it is a C1 form. There is a fee of £215 in the UK and Wales, £200 in Scotland and £250 in Northern Ireland.  Unless the estate is worth less than £5,000.  At the same time you will need to complete an inheritance tax form – if the estate is below the £325,000 threshold it would be IHT205, or if tax is payable the form is IHT400

3.    If someone dies without a will you’ll only be able to apply for a grant of representation if you are next of kin – usually a spouse or child.

4.    Settle inheritance tax (IHT). Before probate can be granted this needs to be paid (the links are above), however, the deceased’s accounts may be frozen.  In some cases, organisations will release funds early to cover IHT and funeral bills.  You’ll need IHT423 and send it directly to the bank of the deceased, the bank will then send funds directly to HMRC.

5.    You’ll need an executors account. This is honestly one of the most convenient ways to gather the deceased’s assets all in one place.  This account will also enable you to manage payments to any beneficiaries.  If you use your own personal account this can slow down the process and make it difficult to keep track of everything.

6.    Notifying beneficiaries. Now this part I learnt about from Heir Hunters on TV as it is actually very important and acts as a back up for your own protection against liabilities.  You’ll need to contact those who are named in the will and notify them, but you should also consider placing an advert in the UK’s official register – The Gazette.  If you don’t, you could be liable for claims from unidentified creditors in the future.

7.    Distributing the assets. As executor it will be your duty to distribute the assets in accordance to the will.  It is recommended that you ask beneficiaries to sign a receipt for any payments you make.  You should also provide accounts for the estate to the people who receive the remaining assets.  Keep records of everything you do for a minimum of 12 years.

As an executor you will deal with a lot of different organisations and each organisation will have its own way of dealing with probate. 

Banks will usually release funds before you have a grant of probate, if its to cover IHT or funeral bills. Generally, these payments will be made directly to HMRC or the funeral director.

As for making the process easier I can only comment from my own experiences of probate.  I would say it is advisable to, where possible, make accounts joint accounts.  And order more copies of the death certificate than you think you’ll need, these are more expensive to order afterwards.