What is Probate and When is it Required?

Probate is something that many of us will have to experience at some point in our lives. It can be difficult to go through, especially when you’re still processing the loss of a loved one.

If this is your first time dealing with probate, it’s important to know more about what it is and why it’s required. To gain a better understanding of the process of probate, and when it is and isn’t required, continue reading.

What is Probate?

Probate is a legal and financial process that involves the administration of an estate belonging to a deceased person. Typically, it involves property, money, or other important possessions, which are known as assets.

It’s usually down to a next of kin or executor of the Will to distribute or transfer the deceased’s estate. While doing so, they may need to apply for probate. It’s important to note that before the executor can distribute an estate as an inheritance, all taxes and debts belonging to the deceased must be paid.

Put simply - probate helps prove that a Will is valid and confirms who has authority to administer it for the person who’s passed away. The legal document used to grant the administrator access to distribute the Will is known as either:

• The Grant of Probate
• Letters of Administration

Knowing When Probate is Required

Probate is required in certain circumstances, but sometimes it's not. But how do you know if probate is needed or not?

When is Probate Needed?

• When a deceased person owns a property or other significant assets in their sole name
• When distributing property and assets among beneficiaries where it was solely owned by the person who died
• When any part of the estate administration is disputed and there are legal proceedings
• When the person owned stock and shares in their sole name
• When their money is over the threshold of £5,000
• When the bank or other financial institutions ask for a Grant of Probate

If probate is needed, you may be wondering who’s responsible for applying for it. When a valid Will has been left, the named executor is responsible for applying for probate. If there’s no Will at all, the rules of intestacy will determine who is responsible for applying for probate.

When is Probate Not Needed?

• When the value of the deceased's estate is low
• If the deceased didn’t own property, land, or shares
• If the deceased was insolvent and had more debt and taxes to pay than they owned
• When the deceased has an insurance policy in the form of a trust (a copy of the policy and death certificate must be produced by the trustee)
• The deceased's property or assets were jointly owned (in this case, the assets will be passed on directly to the other person who owns the assets, such as a husband or wife)

The Process of Probate

The process of probate varies in terms of length. No case is the same, so therefore, no probate process will be the same. The overall process often involves complicated legal aspects, including tax and financial work. Let’s take a look at the process of probate in five simple steps to understand it better.

Stage One

The first stage of probate involves identifying the deceased assets. This includes all of their property, possessions, investments and any other assets. All of their debts (if any) will also be calculated to work out the total remaining value of their estate. During this stage, whoever is entitled to inherit from the estate under the terms of the Will should be verified. If there’s no Will, this will be by the rules of intestacy.

Stage Two

Calculating and paying Inheritance Tax comes next. These payments are sent to HM Revenue & Customs (HMRC), along with the Inheritance Tax return. Then comes applying to the Probate Registry for the grant of probate and letters of administration - which are the documents confirming who has the legal authority to distribute the estate.

Stage Three

After probate has been granted, next comes liquidating (to sell) the assets. This includes paying administrative expenses, settling liabilities, and accounting to HMRC for any further tax due to or from the estate.

Stage Four

The second to last stage involves preparing the estate for payments out and into it, and sending estate accounts to the executor of the Will for approval (or the administrator when there’s no Will) before the remaining balance is left to distribute to the beneficiaries.

Stage Five

The final phase involves transferring assets to beneficiaries, provided there are no challenges before or at this stage. The balance of the estate will be distributed in line with the terms of the Will or when there is no Will, in line with the rules of intestacy.

Working With Probate Solicitors You Can Trust

If you’re seeking expert services from a team of trusted probate solicitors in and around the North West, look no further than Bell Lamb & Joynson. Having first opened our doors back in 1821, we have a wealth of experience dealing with a range of clientele.

We hope that our knowledge has rubbed off and you have a clear understanding of probate and when it’s required. Our team of probate solicitors are both supportive and friendly - we don’t want you to go through probate alone. No matter the circumstances of the case, we promise to guide you through the process.

To discuss our probate services further, contact us today.

Probate FAQs

How much does an estate have to be worth for probate?

Probate is typically required if a deceased person's estate is worth more than £5,000. So, if an estate is worth more than this amount, probate will likely be needed.

Who decides if probate is needed?

It’s mainly down to executors of the Will, and financial institutions, such as banks, to decide if probate is needed.

Does probate become complicated if the deceased had foreign assets?

Yes, the probate process will likely be more complex if the deceased had foreign assets, as other countries have different rules than the UK. The best way to go about this is by speaking with a professional solicitor, who can advise and guide you on what to do.