What is probate?
Probate is the legal right to deal with a deceased person's estate. It enables the deceased’s personal representatives to ensure that all their assets are passed on to the right people. It involves filling out an application form, providing details about the deceased person's assets and liabilities, and paying a fee (£273 for an estate worth more than £5,000). Following the application, you then receive a grant of probate, which can be given to asset holders as proof of the personal representative’s legal authority to collect the estate assets.
Probate isn't always necessary. It depends on the value of the estate and the nature of the deceased’s assets. If, for example, all assets are jointly held by a surviving partner, you will not need probate. In most cases, however, families will need to obtain probate.
Before applying for probate, check whether you are eligible. The application form may name up to four people. The executor(s) of the will generally handle probate. If there is no will, the closest living relative can apply. You must also estimate the estate's value and calculate whether inheritance tax is due.
Why do you need probate?
Getting probate is essential if you are responsible for dealing with someone's estate after death. It allows you to take control of their assets and distribute them according to their wishes, as stated in their will. If someone dies without a will, the intestacy rules apply, and probate is still necessary to legally transfer ownership of their assets.
What are the recent changes to the probate process?
The main change is that a digitised system was introduced in 2019, making it easier to submit applications online. It was implemented fully a year later. This shift towards online aimed to streamline and modernise the probate process, making it more efficient and accessible for all parties involved. In reality, the system began to experience long, ongoing delays.
How long should it take to get probate in the UK?
The government says that applications (online or postal) should take no more than 16 weeks. However, the time it takes to obtain probate can vary depending on the complexity of the estate and any potential issues that may arise. The online system works best for straightforward applications where there is a will and an executor. Generally, the process, which could take as little as ten days before the pandemic, can take anything from a few months to over a year. Currently, the probate office estimates it has a backlog of around 8,000 applications (out of a total of about 300,000 applications that are submitted every year).
Increased online applications have led to many technical issues, errors, and hold-ups. Many bereaved families have reported delays in receiving probate grants. The government says it is boosting staff numbers, streamlining the process, and refining the online service.
The impact of delays in the probate process can be considerable and you may feel stuck in limbo, unable to administer the deceased's estate. Aside from the emotional strain, there are also financial repercussions. Selling any property until probate is granted is impossible, so it may be difficult to exchange contracts on property sales. Interest owed on IHT, which must be paid within six months of a person's death, mounts up. If assets rise in value during this time, it may trigger a capital gains tax bill, while in a falling market, beneficiaries can see the value of their inheritance reduce but are powerless to sell their assets until probate is granted.
What can I do to make the probate process go smoothly?
- Ensure the estate has been assessed for IHT and all outstanding liabilities paid.
- Apply online rather than via paper - it's easier and quicker.
- Complete the form carefully to ensure you provide all necessary information and that all supporting documents are submitted.
- Keep the proof of payment, which details the date the fees were taken.
- Mark in your diary 16 weeks from the submission date so you know when to follow up.
- Keep records of all the paperwork you send to the probate registry and document all calls. This will help if you must follow up on your application or lodge a complaint.
- Once you have the probate document, double-check the details to ensure they are accurate. Banks and other institutions will not accept grants with errors. It is also sensible to order additional copies (£1.50 each) to send to different organisations simultaneously, avoiding unnecessary delay.
How BSR Bespoke chartered accountants in Tunbridge Wells can help with probate
BSR Bespoke accountants have a team of experienced professionals who specialise in probate and estate administration. We understand that dealing with the loss of a loved one is difficult enough without the myriad layers of red tape that accompany it.
We can help you manage all of the associated legal requirements of probate, from filing the relevant forms to managing the assets that are part of an estate. We will support you and keep you informed through the process, following up on queries and chasing the application if required.
If you use an accountant, they are already familiar with your financial affairs. While many solicitors base fees on a percentage of the estate, accountants charge based on estimated time at hourly charge-out rates, which may be financially advantageous. Professional accountants also have access to up-to-date resources on the latest changes to probate law.
Accountants possess an expert understanding of the tax implications and reliefs of wills and distributions and can advise on how to alter wills to ensure tax efficiency.
How to plan for the future
One recent survey by Investec suggested that more than half of people with estates worth more than £1 million have not undertaken any IHT planning, and more than one-fifth have not written a will.
You can take steps that will make a meaningful difference to your family after your death -first, to ensure the probate process runs smoothly, and second, to pass on as much of your estate as possible to your loved ones rather than HMRC. Keep an up-to-date will, confirm your executors, and plan for IHT. Our experienced accountants can assess your estate's exposure to IHT and identify ways to reduce it.
Case study
Recently, we assisted a family with the probate process after their loved one passed away. The deceased had not left a will, which added complexity to the situation.
Our team at BSR Bespoke Accountants worked closely with the family to gather all the necessary information and documents to begin the probate process. We also liaised with banks, insurance companies, and other institutions to ensure all assets were accounted for.
Through careful planning and an understanding of tax implications, we efficiently administered the estate and minimised the family's inheritance tax liabilities. Our team also provided support and guidance throughout the process, easing some of the burden during a difficult time.