Wills & Probate Specialist Advice

The Probate Process

Probate is the name given generally to the process of administering an individual’s estate after death and applying for the Grant of Probate. In reality, this can include a wide range of responsibilities including:

• Registering the death and notifying any relevant organisations.
• Locating a copy of the Will (where applicable) and ensuring that it is valid/the deceased’s last Will.
• Coordinating any funeral arrangements.
• Identifying and tracking down any beneficiaries/potential beneficiaries under the Will or the rules of intestacy (where the deceased died without leaving a valid Will).
• Obtaining details of the deceased’s assets and liabilities.
• Identifying any gifts made by the deceased in the seven years prior to death (or fourteen years in certain circumstances) for the purpose of completing the Inheritance Tax return.
• Preparation and submission of the Inheritance Tax return and settling any liability due.
• Applying for the Grant of Probate where there is a valid Will or Letters of Administration in the absence of a valid Will.
• Finalisation of the deceased’s personal tax affairs up to the date of death, including the submission of any outstanding self-assessment tax returns.
• Realising any assets and settling any outstanding liabilities.
• Dealing with any potential disputes or claims over the estate.
• Calculating any income tax or capital gains tax liabilities due for the period of administration.
• Preparing estate accounts and providing copies to beneficiaries.
• Making distributions to beneficiaries.

Probate Without a Will

When a person dies without a valid Will, this is known as being ‘Intestate’. In cases of Intestacy, there is a set of rules to determine who can administer and benefit from the estate.

Rather than a Grant of Probate, you will be required to obtain ‘Letters of Administration’ in order to proceed with accounting for assets and liabilities.

Depending on the size of the estate and potential beneficiaries in an Intestacy case, the process is often more complex than where a Will is available.

Trusts

Trusts can be incorporated in a will and there are different types of trust that can be set up depending on your circumstances.

A will trust is an arrangement granting trustees control over assets on behalf of others known as ‘beneficiaries’.

It provides flexibility to specify what the trust provides for each beneficiary or allows trustee discretion on the distribution of assets.

Trusts can include:

• Named individuals
• Calls of people e.g. ‘Grandchildren.
• Charities
• Organisations like sports clubs or companies

It even makes it possible to plan for descendants not even born yet and future generations.

The creation of a trust in a will can offer a number of benefits in securing assets including:

• Minimising inheritance tax and taking advantage of tax relief.
• Protecting assets from creditors or divorcing partners.
• To help ensure state benefits of beneficiaries are not interrupted by inheritance.

Read more about Trust Planning

Inheritance Tax Planning

A well written will helps to ensure efficient Inheritance Tax Planning. Tax can be levied on an estate when it comes to including property, money, and possessions when someone dies. It is important to seek professional advice to understand certain thresholds and how to be most efficient. Remember, for a UK domiciled person this applies to worldwide assets such as holiday homes abroad. You should discuss the implications of who and how you leave assets and think about a spouse, partner, children, family members, friends and business partners.

For example, gifting money to beneficiaries within seven years of a death is included in the value of an estate after death.

Read more about Inheritance Tax Planning

Wills

If you pass away without leaving a will, the law decides who inherits your estate. Making a will ensures your assets go to the people you care about the most.

There’s a lot to consider when writing a will, especially when taking into account large sums of money, property, and business interests.

Here’s what you might need to consider:

• Who inherits your estate and at what age.
• Who should become guardian of children under 18 years of age.
• How a spouse is provided for plus protecting a child’s inheritance in the event of remarriage or divorce.
• Who should act as executor(s) for the estate and/or trustee(s) for any trust which may arise.
• The type of business and what happens when an owner dies.
• Providing for a spouse, partner, or family not included in a business relationship.
• The most tax-efficient way to pass wealth such as using trusts or business relief.

Correct planning and will writing make administration much easier once a person is deceased while helping to protect loved ones and share assets in the most tax-efficient manner.

Lasting Power of Attorney (LPA)

Lasting Power of Attorney, also known as LPA, enables you to appoint a person you trust to make decisions about health, welfare, and finances if you are unable due to mental incapacitation.

Without an LPA no one can operate your finances or business interests without a court order, not even a spouse. This can be a particular problem if people rely on you to make decisions, sign cheques, and make payments.

It is possible to have a separate financial and health LPA which enables different people to make decisions on these affairs.

How long does probate take?

Every estate is different, and this can vary significantly depending on a range of factors, including whether there is a Will, the volume and complexity of the assets and liabilities, availability of information, any claims over the estate and/or disputes amongst beneficiaries. For a typical estate with a Will in place, on average the process of probate takes around a year from the date of a death until the estate is distributed.

FAQ about Wills and Probate