Probate



What is Probate?

Unless the estate is very small and with no freehold or leasehold property (such as a house or flat) the personal representatives of the deceased will have to obtain a Grant of Representation from the Probate Registry. This is a document issued by the Court showing their entitlement to deal with the estate.

We will probably be able to tell you straight away if a grant is needed, and we shall handle all the necessary paperwork for you.

What if the Deceased left a Will?

If the deceased left a Will, the application is to the probate registry for a grant of probate and the Executors named in the Will must distribute the Estate in accordance with the Will

 What if the Deceased did not leave a Will?

If the deceased did not make a will and therefore died ‘intestate’, the application is for a grant of letters of administration. The persons who can apply for these are laid down in Statute but broadly are the traditional next of kin. The Law will state how the Estate is to be distributed and if no relatives are found this will be paid to the Crown.

Please click here for more information on the Intestacy Rules

 What does an Executor/ Administrator do?

 An Executor / Administrator is responsible for

  1. Notifying all of the creditors and debtors of the deceased and preparing the IHT accounts to be submitted to the HMRC 
  2. Arranging to pay any Inheritance Tax that is payable on the Estate either form assets that can be released pre-grant or via a loan from a bank 
  3. Applying for a Grant of Probate of the Will or Letters of Administration
  4. Paying the debts of the Estate
  5. Distributing the Estate according to the Will or Intestacy Rules
  6. Preparing Estate accounts showing the progression of the Estate

As can be seen there is a great deal to do and the executors are liable for any mistakes or delays in the administration of the estate. Setfords is here to remove the risk and hassle from your shoulders.

 

Do We have to Pay Inheritance Tax?

 

 Every individual has a tax free allowance of £325,000 known as the nil rate band. Any estate worth more than £325,000 (2009-2010) is charged Inheritance Tax at 40% of the value over this threshold. This tax must be paid before the Grant of Probate of the Will or Letters of Administration can be obtained.

For Example:

A dies with a nett Estate of £400,000, Less the nil rate band this leaves £75,000 chargeable to tax. Therefore before the Grant of Probate or Letters of Administration can be obtained the Executors or Administrators must pay HMRC £30,000.00

As well as the nil rate band mentioned above there are a number of other exemptions and reliefs, the most common being:

  1. Gifts to the spouse of the deceased. Provided both spouses were UK domiciled or Foreign domiciled then any assets passing to the surviving spouse are tax free. In addition following changes to the law in October 2007 the unused nil rate band can be carried over to the surviving spouse allowing them to leave £650,000 tax free to whomever they wish.
  2. Gifts to registered Charities are also exempt. 

If there is likely to be a large amount of IHT to pay, either on the estate now or by the family in the future, we will discuss this with you and, if necessary, the others involved, before the grant is obtained, to consider whether or not action such as a Deed of Variation can be taken to reduce the amount payable either now or in the future.

 

How can Setfords Help?

 

 When a loved one dies the last thing most people want to think about is sorting out their financial affairs. Unfortunately this has to be undertaken and Setfords Solicitors is here to help...

As solicitors we are used to dealing with clients financial affairs and keep up to date with the latest changes and developments.

We provided a complete service including:

  • Sorting through the deceased's papers and contacting the various creditors and debtor's of the deceased
  • Obtaining valuations for the various assets of the Estate
  • Preparing the Inheritance Tax Accounts which need to be prepared before an application for probate can be submitted
  • Drafting the Oath for Executors or Oath for Administrators
  • Collect in the Assets of the Deceased once probate has been obtained
  • Distributing the Estate in accordance with the Will or intestacy rules
  • Preparing the Estate Accounts

Our service does not stop once the estate has been administered, through our close links with various financial planners and accountants we are able to put beneficiaries in touch with local business that will help them manage their inheritance. 

 


If you would like to discuss your requirements in more detail please contact us on 01483 408780 or e-mail info@setfords.co.uk