A Step By Step Probate Guide 

If you would like to speak to our expert Probate Solicitors about how Eric Robinson can support you during the probate process, please give one of our branches a call. You can find us at: Southampton, Hedge End, Chandlers Ford, Winchester, Lymington and Richmond Upon Thames. 

What is Probate? 

Probate is sometimes required in order to successfully release an estate and/or assets to beneficiaries, when a person passes away. It doesn’t matter whether there is an existing Will in place or not, probate depends on the value of the sole assets of the deceased (and the limitations put in place by the bank or financial institution). We will go into this in more detail below.  

Step 1: Understanding Probate

In this section of our probate guide, we explore some of the complexities surrounding probate, such as when it may, and may not be required.

When is Probate Required?

Generally speaking, probate is required when the deceased owned their own home, and/or had financial assets worth more than £30,000. The estate needs to have been in the sole name of the deceased in order to proceed with probate. 

It is important to note that the probate threshold regarding financial assets is different depending on the bank or financial institution dealing with the account. For example, some may not require probate for funds up to £50,000, whereas others may have a threshold lower than £30,000; therefore, you will need to determine the necessary course of action based on your personal circumstances. 

You will also need to be clear on whether the estate or any assets left are in fact in the sole name of the person who has passed away, or whether they are jointly owned. It would be incorrect to assume that because there is a living spouse, probate is not required and all assets automatically transfer to them (with a Will present or otherwise). Only jointly owned assets or those under the minimum threshold don’t require probate, and there can be lengthy delays and higher costs if the people administering the estate end up having to deal with probate. 

As previously touched upon, the existence of a Will doesn’t affect whether probate is required or not. The deciding factor is based upon the value of the assets and/or estate left, and the thresholds specified by the bank or financial institution responsible for the assets.

When is Probate Not Required?

Probate is generally not required when:

• There is a living joint tenant for the estate and/or savings. 
• The assets are less than £30,000, or more specifically, the threshold set by the managing bank.

Step 2: Documentation

What Documents Do I Need for Probate? 

Before beginning the probate process, you’ll need to source the death certificate (or interim certificate), the original Will if there is one, and a completed inheritance tax form. If you have employed the services of a solicitor to aid in the probate process, they may also request your marriage certificate, and any existing Grant of Probate. 

If there is no Will in place, the next of kin will need to apply for a Grant of Letters of Administration, a legal document issued by the Court, authorising someone to administer the estate. Once the documentation is in order, you can either apply for probate yourself, or work with a qualified solicitor to help you through the process. It is recommended that a qualified solicitor is utilised, especially if the value of the estate or assets is high. More details about applying for probate are provided in step 5.  

Step 3: Valuing The Estate 

It’s important to properly value the estate, not only to ensure that the correct amount of inheritance tax is paid, but in the interest of the beneficiaries too. In addition, individual assets need to be valued in order to calculate any potential capital gains tax. Without these valuations, you cannot proceed with the probate process. 

How to Value an Estate for Probate

• Identify all the assets and property or properties for inclusion, as well as any outstanding debts, consumer credit agreements, utility bills and life insurance policies. 
• Estimate the value of the assets on the date of death, alongside any gifts they made in the seven years previous. 
• You’ll also need to determine the value of any trusts in which the deceased had a beneficial interest.    

The initial estimate can be just that, it doesn’t need to be exact at the beginning as this is just to determine whether tax is due or not (see step 4). As you might expect, valuing finances is much more straightforward than personal possessions. For the latter, you may want to employ the help of a valuation expert who will be able to give you the price each asset might reasonably fetch if it was sold on the open market. For properties, instructing a small number of estate agents to build up an informal valuation, or a surveyor for a formal one are both acceptable (and recommended).

Step 4: Inheritance Tax

Paying Inheritance Tax

Inheritance tax (IHT) is tax upon someone’s estate after they die. It’s only payable if the value of the estate (including property, money and possessions) is above £325,000. If the total value is below this amount, or the deceased leaves everything above that threshold to a spouse, civil partner or charity, IHT is usually not payable.Inheritance tax needs to be paid within six months of the person passing away. You can pay HMRC via bank transfer, but you’ll also need your inheritance tax payment reference number to complete it. You should apply for this at least three weeks before making your payment via HMRC either online, or by post with an IHT422 form.

Step 5: Applying

How to Apply for Probate

After valuations have taken place and it has been determined what, if any, inheritance tax is due, you can begin the process of applying for probate. You can do this yourself, or with the support of a trained solicitor. 

If undertaking the process yourself, you can apply by post or online through the gov.uk website. For post applications, there are two different forms depending on whether there is a Will present or not. If there is a Will, you will need to complete a PA1P form, if not, a PA1A form.    

Once you’ve applied and paid any applicable fees, and once approved, you’ll receive a  document that allows you to start dealing with the estate. This will either be: a ‘Grant of Probate’, ‘Letters of Administration’ or ‘Letters of Administration with Will annexed’. Your personal circumstances will determine what type of document you receive.

Why Use a Solicitor? 

Probate can be an emotional and difficult process to undertake and manage. This is one of the reasons why we recommend you consider employing the services of a fully qualified probate solicitor. They will guide you through the process from start to finish, ensuring that all documentation is taken care of, providing regular updates throughout. 

It is also particularly useful to have the assistance of a solicitor when the estate is of high value. This is to ensure that all taxes are calculated correctly and accounted for, and any additional complexities are managed and dealt with swiftly. 

We appreciate that no matter the situation, probate can be stressful and emotional, and at Eric Robinson Solicitors, we ensure that the process runs as smoothly as possible, thereby ensuring that you avoid unwelcome surprises later down the line. 

We pride ourselves on offering our clients an exceptional service, and our solicitors are adept at helping clients navigate through difficult and emotional situations. If you would like to speak to us to get started or ask us a few questions, please do not hesitate to contact your closest branch using the links below. Southampton, Hedge End, Chandlers Ford, Winchester, Lymington and Richmond Upon Thames.