The most important factors for management of the Probate process, by estate planning expert Robert Cartmell.
“Probate” in terms of the law means the Court or Probate Registry’s validation of a Will. Generally, the terms mean the legal confirmation of designating responsibility for the winding up of a deceased person’s estate. The process of “Probate” is known to encompass the whole of the administration, not simply the formal appointment of the executors or administrators.
What is involved in the Probate process?
There are so many aspects involved, but essentially the primary areas are:
- valuation of estate assets and liabilities for the purposes of filing an Inheritance Tax return at HMRC;
- the applying for a Grant (of Probate or Letters of Administration) from the Probate Registry;
- paying all liabilities and any Inheritance Tax (IHT) from the deceased’s assets;
- collecting in monies and/or transferring Estate assets such as property to beneficiaries;
- ensuring distributing the estate to the beneficiaries under the terms of the last Will (or to the next of kin in a set priority order where there is no Will, under the laws of Intestacy).
The Executors (if there is a Will) or Administrators (if no Will or acting as attorney for executors) have the duty to act reasonably and with good care towards those ultimately benefitting from the estate (“Beneficiaries”).
Does it matter how the Probate process is administered?
Yes it does matter, and this includes:
- ensuring the Testator’s wishes are carried out fully and that justice is done to him/her;
- ensuring the Beneficiaries receive the maximum benefit from the Estate in circumstances that are no doubt sensitive (due the passing of a loved one).
- Ensuring the Executors that they are allowed to discharge that process confidently and free from stress and strain.
The process of Probate involves a hybrid of both administration and legal requirements.
So what are the best Tips for ensuring a smooth process?
Tip 1. Appoint a professional firm to manage the Estate Administration process for you.
Do not try to deal with an estate administration process without some form of professional assistance. And, importantly, do not start any aspect of the process without having some initial discussions with a professional estate administration firm. There are many different facets and aspects involved. Whilst a layperson may be able to attend to one or more of those processes, all it takes is one aspect lacking knowledge and the apparent benefit of not using a professional can be lost. A professional firm will be used to dealing with:
- the requirements in terms of obtaining Probate (whether there is a need for a Grant of Probate or not, and why);
- whether Inheritance Tax is required to be paid – and if so, how to complete the IHT forms;
- the usual probate processes for the main banks and financial institutions (what forms are required, whether probate is required to release or transfer funds etc);
- the usual processes for property requirements (Land Registry requirements);
- if Charities are benefiting, their usual requirements (which can be onerous in some circumstances.
Therefore, seek professional guidance as soon as possible and at the start.
Tip 2: Decide on which of the persons appointed as Executors should take an active role
Executors do not have to be professionals or to have previous experience of administering an estate. Most spouses make the survivor of them as their main executor. However, the role is a burdensome one and if someone who is not a beneficiary is appointed executor, they must understand the degree to which it places a burden on their time and energy. It is best to appoint one person to be the primary contact. Then appoint a suitable professional to administer the estate for you.
Tip 3: Provide details and information quickly
Assuming you have a professional firm appointed, make sure that all requests for details and information are responded to swiftly and correctly. Much time and cost can be saved by doing so. Many professional firms charge for their services according to time spent on the file. You do not want a firm having to chase you up for information, it causes delay as well as adding to the time spent on the file. Be wise, provide the information quickly. Likewise, read what is required carefully and provide everything required of you – not just one aspect, leaving the other aspects to be chased.
Tip 4: For Property – take advice on probate processes and sale
Obtain at least two valuations of property before completing Inheritance Tax paperwork. If you wish the property to be sold, be aware that probate is likely to be required to complete the process (unless the property passes automatically by survivorship to a spouse). If Probate is required, the process can take over 3 months from the receipt of application for the Grant to be available. So, consider whether you can market the property for sale and have the buyers ready to proceed once Probate is granted.
Tip 5: Communicate well and efficiently
Emails are good communications. Use email to communicate all relevant people in your communications. Be professional and polite in your conduct with all parties, it will help the process run smoothly from start to finish. Listen to advice and ensure you treat the matter of executorship with the responsibility that it is, for your friend/loved one who has died and entrusted you to the role.
If you would like help or advice from Robert Cartmell on the issues raised in this article, please get in touch. Email Robert Cartmell Consulting at info@robertcartmell.co.uk to make an enquiry or arrange a discussion.