It can be a very upsetting experience losing a loved one and a painful time for anyone. Unfortunately, losing someone may also initiate a series of events, including losing the ability to maintain your financial affairs. As such, it’s important to understand the practical considerations and sociated terminology before these life-changing events.
It may not be nice to think about property and possessions that belonged to your loved one and what you’ll do with them, yet you must before the time comes. In this brief guide, we’ll show you how you can tackle this delicate matter now to keep your family from suffering excessively during these types of events.
Here we also tackle what double probate is and how you can tackle it here.
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Understanding Probate
The term probate is in reference to a legal process that deals with sorting out someone’s estate and possessions after death. This includes money, property, possessions, and even debt. Sometimes a Will has been drafted to help make more complex family affairs and the wishes of the deceased known. Alternatively, there may never be a will due to the simplicity of the individuals’ affairs or needs.
Probate refers to granting representation permission during the transfer of assets between parties. Probate is defined as a legal document that permits handling someone’s estate.
If a will exists, then it will often name executors of the will. This can be one or more people and can include family members or legal representatives.
If there is no one assigned to probate, then you may apply for probate for £215 as next of kin.
Do you need probate?
There are times when probate isn’t formally required. This is often when the estate assets are co-owned by a surviving spouse or civil partner.
Small estates with little to no value also don’t need probate. Most financial institutions have a minimum value below which there is no need to gain probate. Funds are released according to the will or next of kins’ wishes.
You can find the minimum value through the government website, which has a tool to help determine the value. In general, it ranges between £5,000 to £50,000. For any estate larger than this, you’ll need probate to be requested and a named executor.
How do I get probate granted?
You’ll need ‘Grant of Probate’ before being able to sell a property.
Before applying for probate, you’ll need to evaluate the size of the estate. This means creating an inventory and calculating the assets and liabilities. To do this, you’ll need to establish the property’s value and if you need to pay inherence tax on it and the rest of the estate.
After assessing the estate size, you need to complete a PA1 form which is the probate application form. This can be found easily online, or alternatively, you can gain a copy from the Probate Registry. Alternatively, call the Inheritance Tax Helpline.
This is the same process in England and Wales; however, if you live in Scotland, you need to request a Grant of Representation. But, again, this process is remarkably similar to the one used in the rest of the UK.
Inheritance Tax
You’ll need to pay inheritance tax if your estate is worth £325,000 or more. Currently, this is 40% per cent on any value above the threshold value mentioned. However, the government continually changes this value, so you’ll need to double-check what it is when you’re calculating if you need to pay it or not.
You have requirements to pay inheritance tax within six months of the death stated on the death certificate. This can be a challenging ask as the manner of death can extend the time it takes to get your paperwork in order.
Probate and Property: A Guide
It can be a very upsetting experience losing a loved one and a painful time for anyone. Unfortunately, losing someone may also initiate a series of events, including losing the ability to maintain your financial affairs. As such, it’s important to understand the practical considerations and sociated terminology before these life-changing events.
It may not be nice to think about property and possessions that belonged to your loved one and what you’ll do with them, yet you must before the time comes. In this brief guide, we’ll show you how you can tackle this delicate matter now to keep your family from suffering excessively during these types of events.
Here we also tackle what double probate is and how you can tackle it here.
Do I need a probate specialist?
If your estate has no complexity to it, then no, so long as you’re sure you can manage to jump through various hoops. However, if the state is more complex and requires a lot of different matters to be finalised, a probate specialist may be a good idea.
The more complicated the estate, especially if it needs inheritance tax paid, the more gaining help from a probate specialist that will have access to useful connections can help. You will not need to find surveyors or legal advice; everything is handled by one person or team.
However, you need to be aware that using probate specialists can cost you 5% of the estate’s total value! That’s not a small change, so talk to your loved one before the worst happens to reduce the complexity of the estate. Make the estate, if possible, easy to transfer without a probate specialist.
What documents do I need to complete probate?
You’ll need the following to complete probate:
- Death certificate
- Birth certificate
- A will, if one exists
- Any amendments to the will, which are called codicils.
- Marriage or civil partnership certificate.
Ensure you know where all of these documents are ahead of time. If you can’t find one or more of these, you may need to apply for them, which can cause you issues later.
How to complete a probate yourself
To complete the probate yourself, there are several steps you need to follow.
First, ensure that the death has been registered. The coroner often does this, and you can check with them to ensure this has been done. They will often phone you to collect information from you to help with the registration process. Once this is complete, you can apply for probate, which costs £215 for estates worth more than £5000. If there’s a will, you’ll get a Grant of Probate or, when no will exists, Letters of Administration.
During probate application, also apply the inheritance tax form (IHT). You’ll need to inventory the estate to get a value and understand its debt. The value will be the net worth after debt has been accounted for. If any outstanding payments to creditors are required, these will need to be accounted for by you.
You’ll need to notify all governmental departments and relevant organisations of the death. In the UK, the ‘tell us once’ service you can access online makes this process relatively simple. You’ll also need to check there are no life insurance policies under the deceased name. Unfortunately, you’ll either have to know of a policy or phone around to check with insurance companies.
You’ll need to pay off any outstanding debts and inheritance tax as an executor or administrator. Anything owed to a government department is often deducted automatically before the deceased’s account can be closed by the bank or building society. If you can’t pay both debts and inheritance tax, you can sell your property within seven days for fair value and no fee through us.
Distribution of funds and remaining assets will be stated in the will or fairly between next of kin.
You’ll need to decide what to do with the estate’s property. This can sometimes be challenging due to multiple stakeholders involved with elevated emotions; there often is a dispute on the wishes of the loved one. Grant of probate often takes 4 to 6 weeks, yet if something is contested, it could be much longer and require a court to settle matters.
How to sell your property during probate
The sale of a property under probate is the same process as any other time. First, you need a few different valuations from estate agents, followed by assessing local housing prices and defining an asking price and the lowest acceptable offer.
During this process, your property may be empty, so check that insurance from the life insurance still covers the property; if not, you’ll need to purchase your own. Remember to regularly check the property for break-ins and conduct maintenance activities like checking that taps and toilets are still operational and are free of infestations.
What we can offer you
If you’re interested in selling your property fast, then you can opt to sell it to us at Shyft.co.uk. We can set up an initial offer for you within 24 hours of an initial phone call to us. We have extensive free cash flow enabling us to buy the property outright without needing mortgages to be arranged.
We also have our own team of experts that can evaluate the property and create legal documentation as part of the process. In fact, we don’t need you to pay for anything during this process, whether you decide to sell to us or not; you’re under no obligation!
We have extensive experience helping people going through challenging times.
We make our money on the sale of the property later, never from you, and we ensure we give you the current fair value for the property. We also try to ensure the process is hassle-free and that you’re never contacted unless you need to be.
Our process and the way we work ensure you know exactly when you’ll get money from the property in your account. In the majority of cases, we can process this within seven days, although in more complex purchases, this can be up to 28 days.
If needed, we can provide you with a cash advance. If you’d like to talk through this process further, please give us a call; you’re under no obligation to sell to us during any part of our engagement.
Learn about inheritance tax here.