Probate And Winding Up A Deceased's Estate

Applying for probate or letters of administration
Let’s face it, we don’t really talk much about what happens when someone dies. As a result, it can be something of a mystery to know what to do when a loved one dies – at a time when you may be too upset and stressed to think things through carefully.

Below is a summary of the steps to be taken when a loved one dies:

Register the death
The death will need to be registered and the registrar will need the following information about the deceased: the full name, last address, date and place of birth and death, occupation and, in the case of married woman, her maiden name.

The registrar will also want to know whether the body is to be buried or cremated. If it is to be cremated, the registrar will issue a green form which must be given to the funeral director.

A white death certificate is issued free of charge and on the back of that there is a questionnaire concerning DSS benefits which may be payable to the deceased's next of kin.

The registrar will also offer to issue a "certified copy of the death certificate" at a cost of £3.50. Your solicitor will need one certified copy for use in the administration of the estate.

Arrange the funeral
The deceased may have expressed wishes about funeral arrangements either in the Will or privately to relatives. The Will must be checked for such information before any arrangements are made.

Once you have chosen your Funeral Director the arrangements become very straightforward because they will guide you through the decisions that have to be made.

The matters that have to be considered are normally as follows:-

• Did the deceased have any connection with the Church? If so, it is assumed that the Minister of that Church will conduct the funeral.

• Is it to be a burial or cremation?

• If it is a cremation, and there is no connection with any Church, there will normally be a duty clergyman at the Crematorium.

• If there is to be a funeral in Church, it may be necessary to make decisions concerning hymns and readings.

• The Funeral Director will normally assist with the insertion of any necessary notice concerning the funeral in the local or national press.

The funeral account will be paid from the deceased’s estate so you will need to ask the Funeral Directors to send it to the Executors or your solicitor.

Administer the state
When someone dies all the assets held in their sole name are frozen.

Banks, Building Societies and other institutions will require sight of a Grant of Probate, where there is a Will, or a Grant of Letters of Administration where there is no Will, before releasing the assets (unless the estate is very small in which case a simplified procedure is followed).

If there is a valid Will appointing Executors, then those Executors will be entitled to apply for a Grant of Probate. A Probate is a forma1 document, including a copy of the last Will, which names the Executors and confirms their authority to deal with the assets of the estate.

If the deceased died without leaving a valid Will (that is," intestate") your solicitor will want to know whether the deceased left a spouse, children, parents, brothers and sisters or children of brothers and sisters.

The people who are entitled to the intestate’s assets are those entitled to apply for a Grant of Letters of Administration.

What’s involved in a dministering an estate?
Attached to this page is a checklist of the information that Truelegal, or your solicitor, needs to begin the administration of the estate.

If you supply us with all relevant papers we can obtain valuations of the assets and collect details of all liabilities.

The procedure for administration is as follows:

• When we have sufficient information we prepare an Inland Revenue Account if necessary (this depends upon several circumstances including the value of the estate and whether the deceased held an interest in Trust Property), and the Oath  which must be sworn by the Executors or proposed Administrators.

When these documents are ready we usually ask the persons responsible for administering the estate to come in to discuss the future administration. If Inheritance Tax is payable then we have to decide how to fund the payment.

• Before submitting the application for Probate or Letters of Administration, the Personal Representatives are required to pay such amount of Inheritance Tax as is attributable to property other than houses or land.

Since the deceased’s assets are frozen, they are not usually available for this payment and, if necessary, we will arrange a temporary loan through our firm's bank. This loan is repaid when the deceased's assets become available

• Having paid the Inheritance Tax, we submit the application for Probate or Letters of Administration, and probably receive the Grant three or four weeks later.

• When the Grant is issued we send copies of it to the various institutions with authorities signed by the Executors or Administrators authorising them to release assets or to transfer them to the Beneficiaries.

• Immediately upon receipt of closing balances of accounts we repay any Inheritance Tax loan and all debts and funeral expenses.

• At the beginning of the administration, we inform the Inspector of Taxes of the death and ask for confirmation that the deceased's income tax affairs are complete up to the end of the previous tax year. We request a tax return for the period to the date of death. The deceased's income tax affairs must be settled before the administration can be completed.

• Some weeks after the Grant of Probate or Letters of Administration has been issued, if Inheritance Tax is payable, the Capital Taxes Office will begin to ask for further information to supplement the information set out on the Inland Revenue Account.

The values on the Inland Revenue Account have to be agreed with the Capital Taxes Office and, in the case of property such as a house or land or an interest in a business, the value may have to be negotiated. The most usual reason for delays in the administration of the estate is difficulty in finalising the Inheritance Tax or Income Tax liability.

• When sufficient assets are available and all debts have been cleared we ask the Executors to authorise the payment of the legacies given under the Will. It may also be possible to make interim payments on account to the residuary beneficiaries.

• When the Inheritance Tax and income tax liabilities have been ascertained it will usually be possible to complete the administration of the estate. We prepare Estate Accounts, showing all transactions for approval by the Executors. Once these have been approved we make the final payments to the residuary beneficiaries.

• When we send out the Estate Accounts we also ask the Executors to approve our charges in connection with the administration.

These charges are calculated in accordance with the Law Society guidelines by reference to the value of the estate and the value of time spent upon the administration. It may be appropriate in some cases to ask the Executors to approve an interim account. 

Click here if you would like to receive FREE advice from a fully qualified solicitor.