Supporting you step by step through grief: Back to basics on probate

The death of a loved one is something that sadly most of us will experience at some point in our lives.
In the midst of grief, dealing with practicalities such as probate can feel overwhelming at an already challenging time.
With this in mind, we’ve gone back to basics on probate to help you understand the process.

What is probate?

Probate is the legal process of dealing with the estate (savings, property, possessions, debts etc) of someone who has died.
If everything was jointly owned or there is no property involved and assets are below a certain value, probate may not be required. The threshold for probate varies but is generally between £5,000 and £50,000 depending on the bank or financial institution holding the deceased person’s assets.

Do I have to deal with probate matters if I have been named as an Executor?

Sometimes people are reluctant to take on the task of applying for probate.
Hopefully, the person making the Will would have taken time to discuss the matter with you first, so that you may decline. However, where this is not the case, or perhaps your personal circumstances have changed, you may refuse, providing you have not yet started to deal with the administration of the estate.
It may well be that, whilst you are happy to be named as an Executor, you do not feel able to deal with the countless documents, phone calls, emails and red tape associated with the probate process.
At this stressful and emotional time, you may find it easier to appoint a professional to assist with handling probate and other duties of an executor.
Rotherham Taylor are one of a small number of accountancy practices in the UK to be licensed to provide probate services by ICAEW. We can lift the administrative burden from your shoulders and support you with applying for probate every step of the way.

The process

There are five key steps to the probate process.
1. Valuing your estate
The assets of an estate typically include property, savings and possessions.
We will prepare a valuation – rather like a balance sheet – that takes into account any debts that need to be paid. Any gifts made within seven years of the person’s death must also be added to the value of the Estate.
2. IHT
Depending on who is set to inherit the assets and the amounts involved, IHT may be liable.
If this is the case, we will calculate the amount payable and ensure that the correct forms and payment are sent to HMRC on time.
3. Grant of probate of administration.
If a valid Will is in place, you will need to apply for a grant of probate.
This allows you to distribute the assets according to the wishes of the deceased.
Where there is no valid Will (the person has died intestate) a Grant of Administration must be applied for by the next of kin. Our probate experts will be able to provide you with advice and guide you through either process.
4. Liquidating the estate.
This is the official term for turning assets such as property and possessions into cash which can then be distributed to named beneficiaries or the next of kin.
It also involves ensuring that all debts have been paid, including any Income Tax and Capital Gains Tax owed to HMRC.
When handling assets due to the estate – for example, money from the sale of a property – it is common practice to set up an executor’s bank account for the purpose.
We can provide you with advice on how to set up an account.
5. Distribution of the estate’s assets.
Once all debts have been paid and assets have been liquidated, a final net amount can be calculated.
If the terms of the Will state that the estate should be shared amongst beneficiaries as a percentage of the estate’s net value, we can calculate the amount due to each beneficiary.
If there is no Will and the rules of intestacy apply, we can ensure that the estate is correctly distributed according to the regulations.
Your trusted probate experts
At Rotherham Taylor, we know that dealing with the affairs of a deceased loved on can be a highly stressful and emotional time.
That’s why we’re dedicated to supporting you through the probate process.
Our licensed probate experts can help you to:
• Obtain a grant of probate.
• Identify the assets and liabilities of the estate.
• Access assets from bank accounts, property and share portfolios.
• Consider any Deed of Variation opportunities.
• Distribute the assets of the estate according to the terms of the Will.
• Prepare and submit any outstanding Personal Tax Returns up to the date of death.
• Prepare estate tax returns and settle outstanding tax liabilities of the estate.
• Prepare the final estate accounts.
• Provide advice on tax planning opportunities for the estate and/or for beneficiaries.
• Provide ongoing IHT and succession planning advice.
Administering a loved one’s estate after they have passed away can be difficult, but at Rotherham Taylor we are here to support you every step of the way.