What is Probate?
Upon the death of a testator (i.e. someone who has made a Will) it is
necessary for the executors appointed by the Will to make an application to the
Probate Registry (a part of the High Court) for a Grant of Probate. The Probate
application must be supported by an Oath sworn by the executors exhibiting the
Will. The Oath recites personal details of the deceased, incorporates
undertakings on the part of executors that they will administer the deceased’s
estate according to law and contains a statement of the value of the deceased’s
estate. In order to prepare an Oath solicitors need to obtain valuations of all
of the deceased’s assets and liabilities.
If an estate exceeds the Inheritance Tax Threshold solicitors have to
calculate the amount of Inheritance Tax payable reflecting any allowances and
exemptions available. Inheritance Tax on real property (land) is payable by
instalments whereas Inheritance Tax payable in respect of personal property
(stocks and shares, money invested with banks and building societies, proceeds
of the insurance policies if due to the estate, jewellery and household
contents) has to be paid at the time an Account is sent to the Inland Revenue.
Solicitors may therefore have to negotiate with banks and building societies
prior to an application for a Grant of Probate being submitted for an advance
against the deceased’s assets to enable Inheritance Tax to be paid. Only when
the Capital Taxes Office has confirmed that the amount of Inheritance Tax paid
is correct can solicitors proceed to apply for a Grant of Probate. Depending
upon the size and complexity of a person’s estate dealings with the Capital
Taxes Office can be fraught and lengthy.
Once an application for a Grant of Probate has been submitted to the Probate
Registry it usually takes two to three weeks to obtain a Grant.
If a person dies intestate (i.e. without having made a Will) the process is
similar to that above for a Grant of Probate except an application is made for
a Grant of Letters of Administration. In such circumstances the law states who
is entitled to apply for a Grant.
The issue of a Grant of Probate is evidence of the right of executors
appointed by a Will to realise and dispose of assets belonging to the deceased.
The overriding responsibility of executors is to ensure that the terms of a
deceased’s Will are scrupulously observed. Only when all assets have been
realised/disposed of and, debts of the deceased have been paid (including
funeral expenses and Inheritance Tax) may executors proceed to distribute the
(net) estate amongst beneficiaries named in the deceased’s Will. Estate
Accounts have to be prepared and approved before any distributions are made.
Executors may be responsible for investing monies on behalf of infant
beneficiaries having first taken independent expert financial advice.
If you need advice regarding the affairs of a deceased person you should in
the first instance contact Roy Dunn
at Norcliffe & Co or e-mail roy@norcliffe-law.co.uk.
He will arrange for you to come in see him to discuss matters at which time he
will provide you with details of our charging rates and fees charged by the
High Court for obtaining a Grant whether that be a Grant of Probate or a Grant
of Letters of Administration
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