DIY probate uncovered

Many of us love a bargain, especially when it comes to handling life's expenses. Estate administration is no exception. Some people choose to manage the probate process themselves to save money. While this can be possible, it's important to be aware of the risks and challenges involved.

In this article, we'll outline key things to consider if you're thinking about tackling probate on your own.  

First steps 

Before starting, you need to know if a Grant of Probate is required. This legal document gives you the authority to deal with the deceased's assets. Without it, you may be unable to move forward with estate administration.  

If you do need a Grant, you'll have to apply for it. This process involves filling out forms, submitting documents, and potentially paying Inheritance Tax. Until the Grant is obtained, you won’t be able to manage the deceased’s finances, property, or other assets. 

Applying for probate 

Getting a Grant of Probate is mostly a paperwork exercise, but it can be tricky. You’ll need to: 

• Accurately list the deceased's assets and liabilities;
• Determine if the estate's total value is above the Inheritance Tax threshold (also called the Nil Rate Band). If it is, you’ll need to liaise with HMRC and pay any tax due before your probate application can proceed.

Be aware that Executors are personally responsible for Inheritance Tax. If you make a mistake, you could become personally liable for unpaid tax or any losses suffered by beneficiaries. 

Valuing the estate 

Correctly valuing the estate is crucial. HMRC has strict rules about how this should be done. 

• Property values may be affected by factors like planning permission or development potential.
• Antiques, works of art, or collectables may need a professional valuation - guessing their worth can lead to costly errors.
• Stocks and shares have specific valuation rules, especially if the date of death falls on a weekend or public holiday.
• Everyday items like furniture may have minimal value, unless they are vintage or designer pieces.

Once all valuations are complete, and if tax is due, this must be paid before submitting your probate application. 

Is DIY probate worth it? 

People often choose the DIY route to save on probate fees. However, many find the process more complicated and time-consuming than expected. Some eventually turn to professionals after running into difficulties. 

If the estate is simple - for example, if assets are held jointly between spouses or civil partners - DIY probate may be a practical option. In more complex cases, such as those involving Trusts, businesses, or foreign assets, professional guidance is often the safer choice. 

Useful resources 

If you decide to handle probate yourself, there are helpful resources available: 

• HMRC’s Inheritance Tax and Probate Helpline can answer common questions.
• The UK Government’s website provides probate forms and guidance.
• Probate support services, such as Kings Court Trust’s Probate Assist, can provide tailored help at a fixed cost. This allows you to manage simpler tasks while relying on professional support if things become complicated.

Final thoughts 

DIY probate can work well for straightforward estates if you have the time and patience to manage the process. However, the risks increase significantly with complex estates. Professional services can offer valuable peace of mind, especially as they carry insurance in case mistakes are made. 

If you’re unsure where to start, consider seeking initial advice to weigh up your options before deciding whether to proceed alone or with expert help.