It’s tragic when someone close to us passes away. And the legal processes, including the probate process, can be hard to deal with when you are grieving. What is probate and when is it needed? And how does it fit into wider estate planning? Let’s have a look.

What is probate?

Probate is the process in England and Wales in which the will of a deceased individual (if there is indeed a will) is proved to be valid and authority is given to an individual or individuals, who have the authority to administer the deceased’s estate.

Around half of people need probate after somebody dies. Whether or not it is needed depends on what the deceased owned when they were alive – not on whether there’s a will. Probate may be needed when:

• the individual had more than £5,000 in the bank
• the individual owned stock and shares, property or other significant assets solely in their own name
• property and assets are to be distributed among beneficiaries where they were solely owned by the person who died
• any part of the estate administration is disputed.

If probate is required, it is necessary for the next of kin or the executor (an individual named in a will who is expected to oversee that the instructions in the will are carried out) to obtain a grant of probate. Without one, they cannot transfer, sell or distribute assets. They may have to apply for a grant of probate. You can apply for probate online.

What is a grant of probate?

If your application for probate is approved, you will receive a document that gives the next of kin or executor the right to deal with a deceased’s estate. This is called a “grant of probate”.

However, if there is no will, “letters of administration” will be provided. If there is a will but it does not name an executor or the named executor cannot apply for a grant of probate, “letters of administration with will annexed” will be provided. The differences between these documents and a grant of probate are minimal.

When probate has been granted, the next of kin or executor can carry out the wishes of the deceased. They can access bank accounts, settle debts and sell assets. If there is a will, they should follow the instructions. If there isn’t one, inheritance rules called the rules of intestacy kick in. Under these rules, the law decides who is entitled to share someone’s estate based on various factors.

Dealing with the estate of someone who has died

Once probate or administration of the estate has been granted, the executor can deal with the estate and all the associated assets. During the administration period, you may need to:

• verify who is entitled to what from the estate
• pay debts left by the person who died
• sell assets, such as properties and shares (and pay capital gains tax on profits)
• pay inheritance tax to HMRC where you apply and submit the inheritance tax return.

If you’re not the only representative, you should agree with the others on where to hold financial assets, rules on making withdrawals from any estate accounts and what assets need to be sold and when.

How could an accountant help you?

Estate planning and administration is complicated. That’s why working with a trusted professional can be beneficial – and working with an accountant can be extremely helpful, mostly because of their financial knowledge and expertise, which will be invaluable when dealing with asset sales and tax.

All the while, they’ll act as a trusted partner offering efficiency and value for money. It can be especially good working with the accountant you’ve worked with for a while, as you can be sure that there will be that trust and understanding during what will undoubtedly be a difficult time for you.

If you need help obtaining probate, estate administration or wider estate planning, get in touch. Let’s see how we can help.