Probate is a word used to describe the process involved in dealing with the property, money and possessions of a person who has died, and Applying for the legal right to deal with these possessions die is called ‘applying for probate’.
If the person left a will, the Probate Registry will provide you with a ‘grant of probate’.
If the person did not leave a will (intestate), the application process is the same, however you will be provided with ‘letters of administration’.
You may not need probate if the person who died:
had jointly owned land, property, shares or money - these will automatically pass to the surviving owners
only had savings or premium bonds
The Executors of the Will are the people responsible for ascertaining what someone has when they die and should contact each company that hold assets to find out whether or not a grant of probate is required to close that account or obtain the asset. Every organisation has its own rules.
If there was no will, then an “administrator” will deal with the administration of the estate instead. There is a specific set of people who will inherit an estate where there is no will, and the administrator will normally be one of those people.
When is Probate or Letters of Administration required?
As a general rule, if the deceased owned a house (or a share in a house), buildings or land then you will be required to obtain a grant before you can deal with these assets.
Banks and financial institutions set their own limit on what they refer to as a “small payment” and if the amount the deceased held in that bank is less than the limit, you will be able to deal with this without a grant. Any monies above this threshold will result in the banks refusal to allow you to close the account unless you obtain a grant.
Joint bank accounts and property will normally pass to the surviving holder and therefore no Grant of probate would be required. However, if a property is held as “tenants in common” then although the property is held jointly, a Grant is usually required to deal with the property.
The probate process often involves a lot of complex legal and financial work, especially regarding the valuing of assets and inheritance tax. Our Specialist probate team at HTF Legal can help and take over the probate process from start to finish, dealing with all administration matters and also HMRC and the payment of Inheritance tax. Do not hesitate to contact Helen Forster, for a free initial consultation on 01937 227830 or by email to helen.forster@htf-legal.co.uk