Curtis Legal are specialists in probate law in Pontypool. Find out more information about everything related to Wills and Probate.
Probate refers to the legal procedure that administers the estate of a deceased individual. In the UK the procedure is subject to the Probate Act of 1857 and the subsequent laws. Probate's primary function is to disperse assets of the deceased the beneficiaries according to their will or, in the event that they passed away without having a will, as per the rules of intestacy.
The initial step in the probate process is to establish whether the grant of probate is necessary. It is necessary if deceased person held assets under their own name only, for example, investment or property, and the total value of these assets exceeds an amount that is certain. If an order for probate or grant of probate is required the next step is to locate and sign the deceased person's will, if they left one. If there is no will, the deceased is deemed to have died intestate and the estate will be divided according to guidelines of the intestacy.
The grant of probate is a legal document that is issued by the probate court which gives the executor the authority to administer the estate of the deceased. The grant is distributed in the names of executors mentioned in the will. It is needed before they begin to distribute the estate's assets. A grant of probate form includes an official statement of assets and liabilities of the deceased, and the fee for grant is currently at £215 when the value of the assets is greater than £5,000.
After the grant of probate is given, the executors will commence the task of bringing in and dispersing the assets. This involves paying off any debts and obligations, as well as acquiring assets like property and investments. After the assets are gathered then the assets are distributed to the beneficiaries according with the will , or the rules of intestacy.
It is important to remember that Executors have a duty to do what is in the best interest of beneficiaries, and have to keep accurate records of financial transactions related to the estate, and be ready to report for their actions to the beneficiaries.
It's also important to seek out professional assistance with the probate process, particularly in the case of estates that are large or complex. A lawyer can assist with the process of preparing and submitting the probate application, as well as providing advice on tax issues and other legal issues that could arise.
In conclusion, probate is the legal process for administering the estate of a person who has died. This involves requesting an award of probate paying off debts, taking in assets, and distributing them to the beneficiaries. The process can be complicated and it is important to seek professional advice, especially if the estate is large or challenging.
When someone has died in order to realise their assets and pay any debts you need to apply for a document that gives you the authority to act on their behalf. This is known as the grant of representation. When there is a will it will appoint executors to act and these are the people who have to apply for a grant of probate to administer the estate.
Where there is no will the person is said to have died intestate and there are rules set out as to who will be the person who will be appointed what is known as their administrator and then the rules dictate how the estate is to be divided.
The Probate process often involves a lot of complicated legal, tax and financial work. We have broken it down into 4 steps
Step 1: We will identify the deceased’s assets and liabilities in order to determine the value of their Estate.
Step 2: We will prepare the application forms and IHT forms and pay any money due to HMRC in order to obtain the grant of representation
Step 3: After the grant of representation has been issued by the Probate Registry we are able to close bank accounts, sell shares or property and turn the assets into a fund which we will hold safely on our designated client account. This will enable us to discharge any debts and administration expenses. We will prepare accounts showing all of the transactions (estate accounts) and send it to the personal representative for approval before any monies are paid to beneficiaries.
Step 4: Once everything is agreed we will arrange the transfer of any assets that the beneficiaries wish to retain then distribute the balance of the Estate funds.
Whether or not a grant is needed depends on what assets the deceased person owned, and whether they owned them in their sole name. Where assets are owned jointly there will usually be no need to apply for a grant as the assets will automatically pass to the surviving joint owner. Where there is no property and only a small amount in bank accounts then again usually there is no need to apply for a grant. Different banks have different thresholds but some are able to release up to £50,000 to the next of kin on the basis of a signed letter of indemnity. We can help you decide if a grant is required and in over half of the enquiries that we deal with there is no need to obtain a grant and with one call to us we can explain what you need to do to deal with the estate. The question of whether or not a grant will be required is a confusing one and so for guidance please call us for free no obligation advice.
In England and Wales, inheritance tax (IHT) typically has to be paid when an individual’s estate is worth more than £325,000 when they died. We offer free initial advice and our fixed fee complete estate administration service deals with the question of inheritance tax and ensures that the appropriate exemptions are applied. The £325,000 figure is the current inheritance tax threshold and in addition to this there are additional exemptions where property is left to a direct descendant which can mean that an individual can have up to £500,000 tax free before inheritance tax is paid. Inheritance tax currently is charged at 40% although a lesser rate can be applicable for certain assets or beneficiaries. In addition if a spouse has predeceased their unused IHT allowances can be utilised and taken into consideration which can mean that up to £1m of assets can be exempt in certain circumstances. There is no IHT between spouses. In order to get a grant of representation the Inland revenue will need to see details of the value of the estate to calculate if tax needs to be paid. The grant of representation will not be issued until such time as any tax has been paid. When you choose our complete estate administration service we will take care of the relevant inheritance tax matters as part of the administration of the estate. For advice on inheritance tax or any aspect of estate administration, please contact us today.
Obtaining the Grant of Representation and administering an estate typically takes between 3-12 months to complete and can take longer where there is a property to sell.
Every case is different but generally very straight forward cases can be concluded in as little as 3-6 months but complex cases can take over 12 months to finalise.
We will keep you advised throughout the process particularly if we anticipate encountering significant delays. We are very pro-active in managing the matter and our case management system ensures that matters are reviewed and actioned regularly.
Our aim is to deal with the administration as quickly as possible and we would expect the following timescales to be achieved:
Because every estate is different, the above timescales are just estimates and we will be able to give you a more specific time scale when we know the complexity of your matter.
If there is no will the estate may not be distributed as you would expect as there are strict rules that apply to determine who will inherit.
What are the rules?
When someone dies without a valid will there are strict inheritance laws, often referred to as the Rules of Intestacy, which apply in England and Wales.
The Rules of Intestacy can lead to issues as they make no provision for unmarried partners and step children so if they want to claim it can put them in a difficult position in having to make a claim to the Court for adequate financial provision.
Under the Rules of Intestacy, the estate will be divided as follows:
It is important to note that jointly held assets do not pass under the intestacy provisions
The only way to ensure that the people that you want to inherit receive your estate is to make a will.
For more information or to discuss any intestacy concerns, speak to us today.
How much will it cost ?
Many Banks and other Professionals charge a percentage of the value of the estate and hourly rates for estate administration. Our fixed fee service could save you thousands of pounds.
With us there is nothing to pay up front and our costs are always paid by the estate.
We will provide you with a fixed fee quote based upon the amount of work that we anticipate will be involved in dealing with the entire administration of the estate.
Our price ranges from under £1000 to over £10,000 plus vat and disbursements for a high value complex estate. There are many factors which affect the complexity of an Estate and the quotation you will be given.
Our free fixed fee quotation ensures you’ll know exactly how much it will cost to fully administer the estate before we start any work.
Example pricing
As every Estate is different we will provide you with a bespoke quotation, but to give you a understanding of our Probate and estate administration pricing here are some examples of our fixed fee quotations for Estates of varying size and complexity. These examples are for illustrative purposes only :
Example Estate 1 – Simple Estate no property
Our fixed fee Probate quotation for this Estate would be £1000 (+ VAT and disbursements)
Example Estate 2 – Property to sell or transfer
Our fixed fee Probate quotation for this Estate would be £2,500 (+ VAT and disbursements)
Example Estate 3 – More complex estate with Property to sell or transfer
Our fixed fee Probate quotation for this Estate would be £3,500 (+ VAT and disbursements)
Example Estate 4 – Complex Estate
Our fixed fee Probate quotation for this Estate would be £6,500 (+ VAT and disbursements)
Example Estate 5 – High Value Estate
Our fixed fee Probate quotation for this Estate would be £15,000 (+ VAT and disbursements)
Remember the price will not change unless the original information we are given is shown to be incorrect or circumstances change. For a bespoke fixed fee quote call us today or request a call back
Notes : VAT is currently charged at 20%