What is probate?
The term probate can be confusing, as it is often used to describe different things.
The term ‘probate’ is frequently used to describe the process of winding up someone’s estate (money, property and possessions) when they pass away – also known as administering an estate. Strictly speaking, probate is only a part of this process.
‘Probate’ is the part of the process which means applying to the court (Probate Registry) for permission to deal with someone’s estate when they die. If the Probate Registry grants permission, then they will issue a grant. Any inheritance due in order to get the grant will also need to be paid prior to the grant being issued.
If the deceased left a Will, then the Will usually names an executor or executors (the person in charge of administering the estate). If the Probate registry is happy with the Will, then the Will is confirmed by issuing a grant of probate to the executors.
If the deceased did not leave a Will, then the person or people entitled to the estate under the intestacy rules (the administrators) will be entitled to apply for a grant. The probate registry will confirm that the administrators are entitled to act by issuing a grant of letters of Administration.
Once a grant of probate or letters of administration is granted, then the Personal Representatives (the collective term for Executors and Administrators), will then be able to continue administering the estate by collecting in any assets, paying off any debts, settling any taxes due, distributing any gifts to beneficiaries and then paying out what is left to the residuary beneficiaries.
Is it expensive to get a grant of probate? Do I have to hand everything over to a solicitor?
Every estate is different. Some estates may be high in value, but with relatively few assets. Some estates may be lower in value, but consist of many different assets. Some executors may wish to instruct solicitors but still be involved as much as possible, whereas others may prefer to hand everything over to us.
We aim to be open, honest and flexible in our approach. We are happy to work with you and involve you at a level that you are comfortable with. We tailor our work based on the circumstances of the estate and the individuals involved.
Fully administering the estate (collecting info about the assets/liabilities, applying for probate and submitting an IHT return, calling in assets, paying off debts, declaring and paying tax and distributing what is left) generally will cost at least a few thousand pounds, even for a simple estate. As each estate is different, we tend to charge for the time spent on the estate rather than a fixed fee when fully administering an estate, to ensure that the fees reflect the work required based on the individual circumstances of the estate.
We do offer a fixed fee service for applying for a grant only, which is proving increasingly popular. This may be suitable for a relatively simple estate where the executors are content to close down accounts and deal with payment of debts/payments to beneficiaries personally. We can apply for the grant and submit an inheritance tax return. When the grant is issued, we can then hand everything back over to you. Our fee for a grant only in a simple estate is £950 + VAT. There is a court fee of £155 payable to the probate registry plus £1.50 for every copy of the grant required.
Do I need probate?
It is not always necessary to apply for probate depending on the assets involved, the value of the assets and the way that they are owned. We are always happy to have an initial chat and point you in the right direction.