When someone close to you dies, the practical tasks can feel overwhelming, and they arrive at the worst possible time. If you have been named as an executor, or you are the person who will need to deal with the estate, it helps to know that there is a well-trodden path. Probate follows a broadly predictable sequence, and you do not have to do it all at once.
“Probate” is often used loosely to mean the whole process of administering an estate. Strictly, it refers to the court document that confirms who has authority to deal with it. We use the word in both senses below.
The first steps
In the first days and weeks, the priorities are usually these:
- Register the death and obtain copies of the death certificate. Several copies are often useful.
- Find the will, if there is one. Check with the person’s solicitor, their papers at home and any will storage service they may have used. The most recent valid will is the one that counts.
- Secure the property and belongings. Make sure any empty home is safe, notify the insurer and keep valuables secure.
- Notify organisations such as banks, pension providers and government departments. The government’s Tell Us Once service, where available, can help with some of this.
Funeral arrangements often come first in practice. Some banks will release funds directly to pay a funeral invoice before a grant is issued, so it is worth asking.
Grant of probate or letters of administration?
The document that gives someone legal authority to deal with the estate is called a grant of representation. There are two main types.
Where there is a will
If there is a valid will that appoints an executor who is able and willing to act, the executor applies for a grant of probate. Executors can act together, and an executor who does not want to take on the role can usually step aside.
Where there is no will, or no executor
If there is no will, or the will does not appoint an executor who can act, the person entitled applies for letters of administration. They are called the administrator. Who is entitled to apply, and who inherits, is set by the intestacy rules, which follow a fixed order of family members.
Is a grant always needed?
Not always. If the estate is small, or everything was held jointly and passes automatically to a surviving joint owner, a grant may not be required. It usually is needed where the person owned property in their sole name, or where a bank or other institution holds more than it is willing to release without one. Each institution sets its own approach.
Valuing the estate and dealing with inheritance tax
Before applying for the grant, the executor or administrator needs to work out what the person owned and owed at the date of death. That means gathering valuations from banks, pension and investment providers, and a professional valuation of any property. Debts such as credit cards, loans and household bills are listed too, along with the funeral costs.
This information is used to deal with inheritance tax and HMRC. Many estates have no inheritance tax to pay, because of the available allowances and exemptions, such as gifts to a spouse, civil partner or charity. For many of these smaller or simpler estates, a full inheritance tax account is not required, although the executors still need to be satisfied that the estate qualifies and to report certain figures as part of the probate application.
Where the estate does not qualify, a full account is sent to HMRC, usually on form IHT400 with supporting schedules. Any tax due is normally payable, at least in part, before the grant is issued, and interest can run if it is paid late. There are arrangements for some tax to be paid in instalments, and in some cases for funds to come directly from the person’s bank accounts. Lifetime gifts made in the years before death can also be relevant, so it is worth gathering information about them early.
The rules here are detailed and do change, so executors should check the current position or take advice rather than rely on an older understanding.
Applying for the grant
The application is made to the Probate Registry, which is part of HM Courts & Tribunals Service. Many applications are now made online, and the original will is sent to the registry. Where an inheritance tax account has been sent to HMRC, the registry will usually wait until HMRC has processed it before issuing the grant.
Once issued, the grant is sent to the executors, and copies can be used to show banks, providers and the Land Registry that you have authority to act. After a grant is issued, the will generally becomes a public document.
Collecting assets, paying debts and distributing
With the grant in hand, the executors can:
- Collect in the assets, by closing accounts, cashing in investments and, if needed, selling property.
- Pay the debts, expenses and tax, including any income tax or capital gains tax that arises during the administration.
- Protect themselves against unknown creditors, often by placing statutory notices so that creditors have a chance to come forward.
- Prepare estate accounts showing what came in, what was paid out and what each beneficiary receives.
- Distribute the estate in line with the will or the intestacy rules.
Executors are personally responsible for administering the estate correctly. That is why many wait before making final distributions, for example to allow time for creditor notices and for any potential claims against the estate, such as a claim by a dependant who says they have not been reasonably provided for. Rushing to distribute can leave an executor exposed.
How long it takes, and when to get help
It is best to be realistic. Even a straightforward estate often takes many months from start to finish, and estates involving property sales, inheritance tax, businesses or family disagreements can take considerably longer. Much of the time is spent waiting for valuations, for HMRC and the registry, and for sales to complete.
Some executors handle everything themselves. Others ask a solicitor to deal with the whole process, or just the parts they find difficult, such as the tax or a property sale. You can read about how we help on our wills, trusts and probate page. If a disagreement arises between family members or beneficiaries, our personal dispute resolution team can help. And if you are thinking about your own arrangements, our guide on when to update your will may be useful.
