Probate Submission

What is Probate Submission?

Probate submission is the process of formally applying to the court for the legal authority to manage and distribute a deceased person’s estate. This application is necessary whether the deceased left a will (grant of probate) or died intestate, without a will (letters of administration). Upon approval, the submission results in a legal document that authorises the executor or administrator to proceed with estate administration.

Purpose of Probate Submission

The primary purposes of probate submission include:

1. Legal Authority: Obtaining the legal right to access and manage the deceased’s assets.
2. Estate Administration: Facilitating the payment of debts and the distribution of assets to beneficiaries.
3. Compliance: Ensuring that the estate is administered according to the deceased’s wishes (if there is a will) or according to the laws of intestacy (if there is no will).

Roles and Responsibilities in the Probate Submission Process

The Executor or Administrator

The executor (named in the will) or the administrator (appointed if there is no will) is responsible for managing the estate and ensuring that all legal requirements are met during the probate process. Their responsibilities include:

• Collecting and managing the deceased’s assets.
• Paying any outstanding debts and taxes.
• Distributing the remaining assets to the beneficiaries.
• Keeping detailed records of the estate’s administration and providing accounts to the beneficiaries.

Solicitors and Legal Advisors

Solicitors and legal advisors play a crucial role in assisting the executor or administrator throughout the probate submission process. Their responsibilities include:

• Advising on legal and procedural requirements.
• Preparing and submitting the necessary documents to the probate registry.
• Helping to resolve any disputes or issues that arise during the process.
• Ensuring compliance with relevant laws and regulations.

Beneficiaries

Beneficiaries are individuals or entities entitled to receive a portion of the deceased’s estate. Their role is to provide necessary information to the executor or administrator and to cooperate throughout the probate process. They should stay informed about the progress and raise any concerns promptly.

Steps in Submitting a Probate Application

The process of submitting a probate application involves several key steps, each requiring careful attention to detail to ensure a smooth and efficient administration. Below is a detailed outline of these steps:

Registering the Death

Before beginning the probate process, the death must be registered with the local registry office. This should be done within five days of the death. You will need to provide a medical certificate of the cause of death. Once registered, you will receive the death certificate, which is required for various aspects of the probate process.

Locating the Will

If the deceased left a will, it should be located as soon as possible. The will typically names the executors responsible for administering the estate. If there is no will, the estate is considered intestate, and the court will appoint an administrator, usually a close relative, to handle the estate.

Valuing the Estate

Valuing the estate is a crucial step in the probate application process. This involves identifying and valuing all assets and liabilities of the deceased, including property, bank accounts, investments, personal belongings, and any debts or liabilities. Accurate valuation is essential for calculating any inheritance tax (IHT) that may be due.

Property Valuation

For property valuation, it is advisable to obtain professional appraisals to ensure accuracy. Estate agents or chartered surveyors can provide a reliable market valuation of the deceased’s property.

Financial Assets

Financial assets such as bank accounts, investments, and pensions must be valued based on their worth at the date of death. Contacting banks and financial institutions will provide the necessary account balances and statements.

Personal Belongings

Personal belongings, including jewellery, vehicles, and household items, should also be appraised. Some items may hold significant sentimental value but may have a different market value, which must be assessed for probate purposes.

Calculating and Paying Inheritance Tax

Inheritance tax (IHT) must be calculated and paid before probate can be granted. The current threshold for IHT is £325,000, above which the estate is taxed at 40%. There are various exemptions and reliefs available, such as the residence nil-rate band and charitable donations, which can reduce the IHT liability.

Completing the IHT Forms

Completing the relevant IHT forms is a critical part of the process. For estates above the IHT threshold, form IHT400 must be completed, while form IHT205 is used for estates below the threshold. It is important to ensure all information is accurate and complete to avoid penalties or delays.

Paying the IHT

IHT can be paid in instalments over ten years for certain assets, such as property, but the first instalment must be paid before probate is granted. The HM Revenue and Customs (HMRC) website provides guidance on payment options and deadlines.

Preparing the Probate Application

Once the IHT has been paid, the next step is to prepare the probate application. This involves gathering all necessary documents and completing the probate application form (PA1P for executors or PA1A for administrators). Required documents include:

• The original will (if applicable).
• The death certificate.
• The completed IHT forms.
• A statement of truth affirming the accuracy of the information provided.

Submitting the Application to the Probate Registry

The completed probate application must be submitted to the probate registry. This can be done online or by post. The application fee must also be paid, which varies depending on the estate’s value. Currently, estates valued at over £5,000 are subject to a fee, while those below this threshold are exempt.

Online Submission

Submitting the application online via the government website simplifies the process and allows for faster processing times.

Postal Submission

Alternatively, paper applications can be submitted by post. It is important to ensure that all documents are complete and accurate to avoid delays.

Receiving the Grant of Probate

Once the application is submitted and approved, the probate registry will issue the grant of probate (for executors) or letters of administration (for administrators). This legal document provides the authority to manage and distribute the deceased’s estate according to the will or the rules of intestacy.

Administering the Estate

With the grant of probate in hand, the executor or administrator can begin the process of administering the estate. This involves several key tasks:

Collecting Assets

The executor must collect all estate assets, including closing bank accounts, selling property, and gathering personal belongings. This step may involve contacting various financial institutions and asset holders to transfer ownership to the estate.

Paying Debts and Liabilities

The deceased’s outstanding debts and liabilities must be settled before distributing the estate. This includes paying off mortgages, credit card debts, utility bills, and other financial obligations.

Distributing the Estate

Once all debts and liabilities have been settled, the remaining assets can be distributed to the beneficiaries as specified in the will or according to the rules of intestacy. This may involve transferring property titles, distributing funds from bank accounts, and ensuring all beneficiaries receive their entitlements.

Finalising the Estate

The final step in the probate process is to ensure all legal and tax obligations have been fulfilled and to prepare a final account of the estate. This includes:

Final Tax Returns

The executor must file final tax returns for the deceased, including any outstanding income tax or capital gains tax. It is important to ensure all tax liabilities are settled to avoid future issues.

Estate Accounts

Preparing a detailed estate account, including all assets, liabilities, income, and expenditures, provides transparency and accountability. Beneficiaries should be provided with a copy of the estate accounts for their records.

Common Issues in the Probate Submission Process

While the probate submission process is generally straightforward, several common issues can arise that may complicate matters:

Disputed Wills

Disputes over the validity of a will can significantly delay the probate process. Common grounds for contesting a will include claims of undue influence, lack of testamentary capacity, or improper execution. Resolving these disputes may require legal intervention and can be time-consuming and costly.

Missing Beneficiaries

Locating all beneficiaries named in the will can be challenging, especially if they have moved or changed contact details. Efforts must be made to trace missing beneficiaries, which may involve hiring a professional tracing agent.

Insolvent Estates

If the estate’s debts exceed its assets, the estate is considered insolvent. In such cases, the executor must follow specific procedures to ensure debts are paid in the correct order of priority. Beneficiaries may not receive any inheritance if the estate is insolvent.

Complex Assets

Complex assets, such as foreign property, business interests, or digital assets, can complicate the valuation and distribution process. Specialist advice may be required to handle these assets appropriately.

Delays in Grant of Probate

Delays in receiving the grant of probate can occur due to incomplete or inaccurate application forms, disputes, or backlog at the probate registry. Ensuring all documentation is complete and accurate can help minimise delays.

Resolving Common Issues

Resolving common issues in the probate submission process requires careful planning, clear communication, and, in some cases, legal intervention. Here are some strategies for addressing these challenges:

Mediation

Mediation can be an effective way to resolve disputes over the validity of the will or other issues. A neutral third party can help facilitate discussions and reach a mutually agreeable solution.

Legal Advice

Seeking legal advice can help clarify complex issues and ensure that the probate submission process complies with legal requirements. Solicitors can provide guidance on interpreting the will, handling disputes, and managing complex assets.

Clear Communication

Maintaining clear and transparent communication with all beneficiaries, heirs, and other interested parties throughout the probate process can help prevent misunderstandings and disputes. Providing regular updates and detailed accounts can build trust and ensure that everyone understands the process.

Professional Valuation

Obtaining professional valuations for complex or high-value assets can ensure accuracy and prevent disputes over asset values. Chartered surveyors, financial advisors, and other professionals can provide reliable valuations.

Tracing Agents

Hiring a professional tracing agent can help locate missing beneficiaries and ensure all entitled individuals receive their inheritance.

Tax Planning

Effective tax planning can help minimise tax liabilities and meet all tax obligations. Consulting with a tax advisor can provide valuable insights and strategies for managing estate taxes.

Conclusion

Submitting a probate application is critical in administering a deceased person’s estate. Understanding each step and fulfilling all legal and tax obligations ensures that the process runs smoothly and that the deceased’s wishes are honoured.

At DLS Solicitors, we are committed to providing expert guidance and support throughout the probate submission process, ensuring that you can navigate this challenging time with confidence and clarity. Whether you are dealing with a simple estate or a more complex situation, our team of experienced solicitors is here to help every step of the way.