The loss of a loved one is truly one of life’s greatest challenges. Aside from the immense emotional burden of grief, there are also the unfortunately unavoidable practical aspects with which to contend. Chief among these is what happens to the person’s estate when they pass away.
A person’s estate can include anything from savings and pensions to properties and personal household items. It is a great responsibility to oversee what happens to these assets, but you do not have to carry this burden alone if you do not wish to.
You could do a ‘DIY probate’ on your own, or you can ask a probate solicitor to help you: the choice is yours. The benefit of using a solicitor is that you can pass much of the work over to a professional. This removes the burden from your shoulders. It also provides peace of mind that the process has been completed accurately.
In this blog post, we will explain exactly what probate is, what you need to consider before making the choice between a DIY probate and professional support, and how Cooklaw Solicitors can help make this process quicker and less stressful during an already stressful time.
What is probate?
The first thing we must determine before making any important decisions is to determine precisely what probate entails. Probate is the process of overseeing the estate of a deceased person to ensure everything is dealt with in accordance with the Will of the deceased. The person chosen to carry out this responsibility is referred to as the executor of the Will.
As previously mentioned, estates can vary greatly in size and complexity between individuals. Where one person may have left their pension to be distributed among their family, another may have left properties or valuables such as jewellery and art, and more.
Additionally, it is important to note that probate is not always necessary. For example, if the deceased and their significant other owned a property as joint tenants, probate is typically not necessary as the assets will be transferred to the spouse or civil partner. If you are unsure if you need to complete a probate, please feel free to ask a member of our team.
Before you apply for probate
You do not have to use a probate solicitor; you are perfectly entitled to complete a DIY probate without legal help. You can apply for probate online or via the post. However, there are some steps you must complete before applying. This can be quite straightforward, or it can be very complex – it all depends on the estate.
In short, you need to:
- Calculate the value of the deceased’s estate
- Report the tax position to HMRC
Calculating the value of the estate
Calculating the value of the estate can be a significant undertaking. You need to get valuations for the deceased’s property and other notable assets, such as stocks, shares, investments, art and jewellery. You also need to contact any banks and financial institutions the deceased held assets with and request a final statement. This includes building societies, pension providers and life insurance policies.
Then you must complete the same exercise for the deceased’s debts. You need to speak to all the deceased’s creditors and determine the debt owing for each. This includes utility providers, mortgage lenders, credit cards, car finance, and other personal loans. It is also necessary to establish what gifts the deceased gave away during the seven years before their death, and the value of any trusts where the deceased had a beneficial interest.
This exercise can take a lot of time. It is likely that you do not know exactly what assets and debts the deceased held. If not, you will have to invest many hours sifting through paperwork and correspondence to establish their financial situation. You will then have to contact each organisation to inform them of the death, and to verify the value of the asset or debt. This is especially complicated if the deceased had a large estate or held foreign property.
Reporting the tax position to HMRC
All this information must be reported to HMRC. Before you do so, you must use the value of the deceased’s assets to work out whether Inheritance Tax (IHT) is payable. This is a big responsibility and is something you must get right. Failing to pay the correct amount of Inheritance Tax carries serious penalties, even if it happened due to a genuine mistake. The calculation is based on the current Inheritance Tax rules which are subject to updates.
Applying for probate
Once all the above has been done, you can then apply for probate. This involves an application to the probate Registry. You need to submit various documents in support of your application. Any mistakes will delay the application as it cannot be processed. In turn, this will delay the administration of the estate, which is the next stage of the process. This involves yet more work, ranging from selling assets, and paying creditors to distributing the remaining estate.
When should you consider a probate solicitor?
If the deceased owned very little and there is no Inheritance Tax liability, you may feel confident enough to complete a DIY probate. However, if the deceased owned a large estate (or it is complicated by certain factors such as foreign assets) then you must be prepared for a lot of work. It is also a big responsibility, as you will be held personally liable for any mistakes that are made.
Due to the complexities of a DIY probate, many people prefer to use a probate solicitor. You can hand the work over to someone who knows the rules inside out, meaning you will not have to familiarise yourself with probate and tax laws.
A probate solicitor can investigate the deceased’s financial position and determine whether IHT is due. This saves you a lot of time and stress. It also speeds up the process, ensuring the beneficiaries receive their inheritance sooner rather than later.
The benefits of using a probate solicitor
While the option of a DIY probate might seem appealing, especially in cases where the estate appears straightforward, it’s crucial to weigh the benefits of using a probate solicitor. Their expertise can be invaluable in navigating the complexities of probate, ensuring accuracy, efficiency, and peace of mind during an already challenging time.
Identifying hidden complexities
Probate solicitors have the experience needed to identify potential issues such as unknown debts, missing beneficiaries, or unclear Will provisions that might be easily overlooked by someone unfamiliar with the process. This ability to anticipate and address potential problems can save significant time and stress.
Navigating legal and tax intricacies
Probate law and Inheritance Tax regulations are complicated to say the least and are subject to change. Solicitors stay up to date with these laws, ensuring accurate valuations, tax calculations, and compliance with HMRC requirements. Mistakes in these areas can lead to penalties and delays, making the solicitor’s vast knowledge absolutely indispensable.
Saving time and reducing stress
DIY probate can be incredibly time-consuming, involving extensive paperwork, correspondence, and research. Solicitors handle these tasks efficiently, freeing your time to focus on personal matters and grieving. This is particularly pertinent when executors are also dealing with their own grief and the emotional burden of loss.
Dealing with legal and financial matters after losing a loved one can be extremely emotionally draining. A solicitor takes on this burden, providing support and guidance throughout the process. They act as a point of contact, answering questions and explaining procedures, which can be a great comfort during a difficult time.
Minimising errors and ensuring accuracy
Probate applications require meticulous attention to detail. Solicitors are trained to avoid errors that could delay the process, ensuring a smooth and timely administration of the estate. Even small oversights can cause significant hold-ups, and the solicitor’s expertise helps prevent these from occurring.
Resolving disputes and protecting assets
In cases of family disputes or disagreements over the Will, a solicitor can act as a neutral mediator, helping to resolve issues and avoid costly legal battles. Their impartial perspective and legal knowledge can be instrumental in finding solutions that are acceptable to all parties.
Solicitors can advise on how best to protect the deceased’s assets during the probate process, ensuring they are distributed according to the Will’s wishes. This can involve guidance on managing investments, dealing with property, and safeguarding valuable possessions.
Full estate administration
Beyond probate, solicitors can assist with the ongoing administration of the estate, including selling property, managing investments, and distributing inheritances to beneficiaries. This can be a significant undertaking and help from a solicitor ensures that everything is handled correctly and efficiently.
Providing peace of mind and saving money
Ultimately, using a probate solicitor offers peace of mind. You can be confident that the estate is being handled correctly, legally, and with the utmost care. This reassurance is invaluable during a time of grief and loss, allowing you to focus on healing and supporting your family.
While there are costs associated with hiring a solicitor, their expertise can often save money in the long run by avoiding costly mistakes, penalties, and delays. The potential cost of errors in a DIY probate can far outweigh the fees charged by a professional, making it a cost-effective choice in many cases.
Probate solicitors in Sunderland
Our probate team are trained to deliver expert legal advice with sympathy and as little jargon as possible. Our advice will always be straightforward and professional, but we understand that a friendly and patient approach is absolutely essential during such a difficult time.
If you would like help with a probate application, call our Sunderland solicitors on 0191 567 7244 and we’ll be happy to help. If you would rather contact us online, email us on info@cooklaw.co.uk and one of our team will be in touch with you shortly.
