What is probate?

The word “probate” is a Latin term meaning to ‘prove’ the last Will and Testament of someone as a valid public document. Therefore, probate is the legal and financial process of proving that a Will is valid. It gives legal authority to administer the estate of a person who has died. It involves valuing the property, money, and possessions (referred to as the assets) that belonged to someone who has died, and distributing them to the beneficiaries. This process is referred to as ‘confirmation’ in Scotland. 

 The term also applies to the same process of administering a deceased person’s estate, even if they died without leaving a valid Will. If this is the case, their estate will be administered according to the rules of intestacy. 

 If you are the next of kin of the deceased (that person’s closest living relative(s)), or you have been named as an Executor in their Will, you might need to apply for a Grant of Probate before you can begin administering their estate. 

What is a Grant of Probate? 

To administer an estate, you may need to apply for a Grant of Probate. This is a legal document issued by the court that is sometimes needed to access the bank accounts, sell the assets, and settle the debts of someone who has passed away. It gives an Executor the authority to manage and distribute a deceased person’s assets according to their Will. It serves as official recognition that the Will they left is valid and that the Executor has the legal right to act on behalf of the estate. 

This document is only called a Grant of Probate if the person who died left a Will. If they didn’t leave a Will, a Grant of Letters of Administration is used instead. Both documents give a named person the legal authority to administer the estate of someone who has died. The only difference between the two is that a Grant of Probate applies when that person left a valid Will, and a Grant of Letters of Administration applies when they did not.  

Applying for a Grant of Probate 

 You can apply for a Grant of Probate yourself, either online or via the post. To do this, there are several tasks that you need to complete beforehand. These include: 

• Registering the death;
• Valuing the assets and liabilities; 
• Valuing any property; 
• Valuing any gifts made by the deceased.  

If you are applying by post and there is a Will, you will need to complete a PA1P form. If there isn’t a Will, you will need to complete a PA1A form. You may also need to complete the relevant Inheritance Tax (IHT) form, depending on what’s included in the estate. You will need to send the forms to your local Probate Registry along with an official death certificate, the last original Will, and any Codicils (if they exist). 

If you are applying online, you can do so at GOV.UK. You must have estimated the value of the estate beforehand to find out if there is any Inheritance Tax to pay. Once you’ve reported the full estate to HM Revenue and Customs (HMRC) you must start paying Inheritance Tax (if applicable) and wait for HMRC to send you a letter containing a code before you can apply for a Grant of Probate.  

You may have to pay an upfront fee when applying for a Grant of Probate. This is dependent on the value of the estate:  

• If the value of the estate exceeds £5,000, the application fee is £300; 
• If the value of the state is £5,000 or less, there is no application fee. 

You can order additional copies of a Grant of Probate for £1.50 per document, allowing you to send them to multiple organisations at the same time to speed up the process.   

You can also instruct a probate practitioner or estate administration expert, such as Kings Court Trust, to apply for a Grant of Probate on your behalf. Probate can be an overwhelming and complex process, especially when dealing with the passing of a loved one, so you may find it to be beneficial to hire a professional to help guide you through the process. They can use their expert legal knowledge to avoid complications and complete the process quicker than if you were attempting it yourself.  

The probate process explained 

The probate process is often a time-consuming and complicated one. It involves complex legal, tax, and financial knowledge and can take several months to years to complete. Here’s a breakdown of the process: 

1. Identifying the deceased’s assets and liabilities

The first step of the process is to identify all the assets belonging to the deceased. These can include property, possessions, and investments such as shares. You will also need to identify their liabilities. These include debts such as utility bills and loans. This will determine the value of their estate.  

2. Paying Inheritance Tax (IHT) and applying for a Grant of Probate 

Once you have determined the value of the estate and verified who is entitled to receive what from it, you will need to pay Inheritance Tax (if applicable) to HMRC and submit the Inheritance Tax return. Once completed, you will be able to apply for a Grant of Probate.  

3. Liquidating assets and settling tax 

Once the Probate Registry has issued a Grant of Probate, you will then be able to sell the assets and settle the debts of the person who has passed away. At this stage, you can pay the final expenses derived from administering the estate, as well as settle accounts with HMRC for any further Inheritance Tax, Income Tax, or Capital Gains Tax that is due to or from the estate. 

4. Preparing and approving estate accounts 

Once all accounts are settled, you will then be free to prepare them for all payments due in and out of the estate. Upon completion, this will show the total balance left, ready to be distributed to the beneficiaries. 

5. Distribution

The final step in the probate process involves transferring assets over to the beneficiaries, if they want to keep them.  The balance of the estate can also be distributed according to the terms of the Will or the rules of intestacy.