What is probate? |
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Jane Cassell looks at what probate is and how it works.
The Grant of Probate allows the executors named in the Will, to get on with administering the estate.
People sometimes believe that if there is a Will, there is no need for a Grant of Probate. In fact, having a valid Will means that getting the Grant is easier. If there is no valid Will, then it’s a Grant of Letters of Administration (to deal with the Intestacy), rather than a Grant of Probate, to apply what the Will says.
Having recently had a family health situation to deal with, it’s clear that every profession or industry has its own language. At school, “PE” meant gym shorts and running round a field. In a hospital it means “Pulmonary Embolism.” To you or me, that’s a blood clot.
Yes, it’s a new language, but a good legal advisor will explain everything in a way that makes sense to you.
A Grant of Probate will be required if there are substantial assets in the estate, like a property in that person’s name, a bank account with more than about £5,000 in it, or any shares to deal with.
Who obtains Probate?
The people who have the responsibility to obtain the Grant of Probate, are the executors named in the Will.
If there is no Will, then the language changes, and the people dealing with obtaining the Grant of Letters of Administration, are the personal representatives. They are likely in practice, to be the people benefitting under the Intestacy Rules, because those are the people who are incentivised to get things moving.
People who are named as executors in a Will, or for that matter, personal representatives, are always free to receive help and guidance from professionals such as Solicitors, companies offering Probate services, and indeed their Bank (unless of course the professional adviser is included as an executor – they will then want to do the work… and charge for it).
The benefit of appointing family as executors, is that it is their choice who they seek help from at the time of the death. Some executors may have moved to another part of the country, some people may find it baffling to pay a percentage of the value of the estate, and then a high hourly charge on top, and they may choose to ask help from a company who is willing to give a fixed fee for their work.
When is a Grant of Probate not needed?
A Grant of Probate is not needed for a property held as Joint Tenants. This can be a home or other property, which passes by survivorship. Also, a bank account held in joint names can pass automatically to the survivor(s).
Nominated property can pass to nominees selected by the deceased, and if this property is paid directly out to those nominees without the need for a Grant of Probate, this can be easy and quick to deal with.
Life insurance policies where funds were held in trust, and pension benefits, can be paid directly to beneficiaries, without the need for a Grant of Probate.
When is a Grant of Probate needed?
Though there are a number of assets which may pass to beneficiaries outside the Will, either automatically or outside of the estate, there are still many assets which require a Grant of Probate to be obtained.
As stated previously, a bank account in the deceased’s sole name, with any significant amount, will require the Grant of Probate. A property which is passing to beneficiaries other than surviving joint owners, or going to be sold from them, will require a Grant.
Once the Grant is obtained
Once the Grant is obtained, whether it’s a Grant of Probate (where there’s a Will) or if it’s a Grant of Letters of Administration (no Will), this allows the executors / personal representatives to start collecting the assets in.
Depending on the size of the estate, and who it is passing to, there may be some Inheritance Tax to pay, and there is something of a Catch-22 when the Grant is applied for. Some money may need to be released by the bank (assuming it’s available and not all tied up in the house), so that the Grant can be obtained, so that the rest of the funds can then be released using the Grant. There are forms available from each bank for this process, or your legal adviser will take care of this for you.
What does the Grant of Probate look like?
The Grant is normally a single sheet of paper, yellow/sandy in colour, and the original has a copy of the Will attached.
The Grant of Probate (or Grant of Letters of Administration) is required to be sent to each of the places where money or assets are held, so it’s best to count up the number of different organisations, and order the correct number of “office copies” so that you can send them all off at the same time. Usually, each organisation wants to see an official copy, rather than simply a photocopy.
It’s worth mentioning…
If you appoint your family as executors, they can shop around when you die, to find the help and guidance that suits them at the time. Their choice may be influenced by price, but it may also be influenced by geography, where they live, and how they connect with the advisor who is offering to help them.
September 2012
Disclaimer:
The Grant of Probate allows the executors named in the Will, to get on with administering the estate.
People sometimes believe that if there is a Will, there is no need for a Grant of Probate. In fact, having a valid Will means that getting the Grant is easier. If there is no valid Will, then it’s a Grant of Letters of Administration (to deal with the Intestacy), rather than a Grant of Probate, to apply what the Will says.
Having recently had a family health situation to deal with, it’s clear that every profession or industry has its own language. At school, “PE” meant gym shorts and running round a field. In a hospital it means “Pulmonary Embolism.” To you or me, that’s a blood clot.
Yes, it’s a new language, but a good legal advisor will explain everything in a way that makes sense to you.
A Grant of Probate will be required if there are substantial assets in the estate, like a property in that person’s name, a bank account with more than about £5,000 in it, or any shares to deal with.
Who obtains Probate?
The people who have the responsibility to obtain the Grant of Probate, are the executors named in the Will.
If there is no Will, then the language changes, and the people dealing with obtaining the Grant of Letters of Administration, are the personal representatives. They are likely in practice, to be the people benefitting under the Intestacy Rules, because those are the people who are incentivised to get things moving.
People who are named as executors in a Will, or for that matter, personal representatives, are always free to receive help and guidance from professionals such as Solicitors, companies offering Probate services, and indeed their Bank (unless of course the professional adviser is included as an executor – they will then want to do the work… and charge for it).
The benefit of appointing family as executors, is that it is their choice who they seek help from at the time of the death. Some executors may have moved to another part of the country, some people may find it baffling to pay a percentage of the value of the estate, and then a high hourly charge on top, and they may choose to ask help from a company who is willing to give a fixed fee for their work.
When is a Grant of Probate not needed?
A Grant of Probate is not needed for a property held as Joint Tenants. This can be a home or other property, which passes by survivorship. Also, a bank account held in joint names can pass automatically to the survivor(s).
Nominated property can pass to nominees selected by the deceased, and if this property is paid directly out to those nominees without the need for a Grant of Probate, this can be easy and quick to deal with.
Life insurance policies where funds were held in trust, and pension benefits, can be paid directly to beneficiaries, without the need for a Grant of Probate.
When is a Grant of Probate needed?
Though there are a number of assets which may pass to beneficiaries outside the Will, either automatically or outside of the estate, there are still many assets which require a Grant of Probate to be obtained.
As stated previously, a bank account in the deceased’s sole name, with any significant amount, will require the Grant of Probate. A property which is passing to beneficiaries other than surviving joint owners, or going to be sold from them, will require a Grant.
Once the Grant is obtained
Once the Grant is obtained, whether it’s a Grant of Probate (where there’s a Will) or if it’s a Grant of Letters of Administration (no Will), this allows the executors / personal representatives to start collecting the assets in.
Depending on the size of the estate, and who it is passing to, there may be some Inheritance Tax to pay, and there is something of a Catch-22 when the Grant is applied for. Some money may need to be released by the bank (assuming it’s available and not all tied up in the house), so that the Grant can be obtained, so that the rest of the funds can then be released using the Grant. There are forms available from each bank for this process, or your legal adviser will take care of this for you.
What does the Grant of Probate look like?
The Grant is normally a single sheet of paper, yellow/sandy in colour, and the original has a copy of the Will attached.
The Grant of Probate (or Grant of Letters of Administration) is required to be sent to each of the places where money or assets are held, so it’s best to count up the number of different organisations, and order the correct number of “office copies” so that you can send them all off at the same time. Usually, each organisation wants to see an official copy, rather than simply a photocopy.
It’s worth mentioning…
If you appoint your family as executors, they can shop around when you die, to find the help and guidance that suits them at the time. Their choice may be influenced by price, but it may also be influenced by geography, where they live, and how they connect with the advisor who is offering to help them.
September 2012
Disclaimer: