What is Probate ?
Many people ask
what in fact “probate” is as it is a term that is used all the time
when talking about Wills.
“Probate” is the
general term used by the legal professional to describe the process
of administering a deceased person’s Estate in accordance with their
wishes (if they left a Will) or by the set of compulsory rules known
as the intestacy rules (if they left no Will). The term “probate”
can also be used to describe the process of obtaining probate or the
Grant of Probate/Representation. The Grant is the legal document
that is issued by the Probate Registry when a person dies to the
Executors (if there is a Will) or to the Administrators (if there is
no Will). The Grant enables asset holders to close accounts and
release monies held by the deceased to the Estate.
Executors/Administrators will not be able to arrange the release of
assets or indeed complete the sale of any property held by the
deceased until the Grant has been obtained.
The type of Grant
applied for will depend on whether the deceased left a Will or not.
A “Grant of Probate” is obtained when the deceased left a Will and
the “Grant of Letters of Administration” is applied for when the
deceased did not make a Will. Innes Wills & Estate Services can
assist you with both these types of applications.
How do I obtain
the Grant ?
The procedure for
obtaining the Grant is a complicated one and most families employ
professionals, such as Innes Wills & Estate Services, to assist them
in this procedure as they find the task too daunting and upsetting
to sort this matter out themselves.
In a nutshell, all
the assets held by the deceased have to be valued at the date of
death. If the value of the Estate exceeds the current inheritance
tax threshold of £285,000, then there is a possibility that
inheritance tax will be payable although there are some exemptions
which can be deducted. The values of the assets are then recorded
in the probate papers which are sent to the Probate Registry with
the Court fee in order to apply for the Grant.
Please be aware
that any inheritance tax liability has to be paid before the Grant
is applied for and indeed any assets are encashed. Therefore, from
our extensive experience in these matters, if none of the
beneficiaries/Executors can provide a “loan” to the Estate, to be
reimbursed at a later date, or if none of the “cash” assets are
sufficient to cover the liability, then a commercial “bridging loan”
has to be applied for and interest paid.
Why shouldn’t I
approach a solicitors or bank to help with probate ?
The administration
of an estate is a service offered by many banks/financial
institutions as well as solicitors’ firms. However, many of these
charge a fee based on a percentage of the value of the estate
ranging from 1% any where up to 6% in addition to the actual amount
of time they spend on the probate on a day-to-day basis.
Innes Wills &
Estate Services do not believe in this costs structure as we feel it
is unfair so we only charge for the actual work done on a time spent
basis. We always provide a full estimate of the costs of our
services in advance of doing any work so that you are aware from day
one of the likely costs involved.
Unlike a lot of
solicitors’ firms and other financial institutions that offer
probate assistance, Innes Wills & Estate Services will provide you
with a personal and friendly service which is what families need
when a loved one has passed away. |
