Estates & Probate
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After someone dies, there are often legal and financial matters that need to be dealt with. This process is known as estate administration and may involve applying for probate. If you've never dealt with an estate before, it can seem complicated.
This guide explains what probate is, when it may be needed, who is responsible for applying and the main steps involved in administering an estate.
What Is Probate?
Probate is the legal process of managing a person's estate after they have died. An estate includes everything the person owned, such as:
- Property
- Money held in bank or building society accounts
- Savings and investments
- Personal possessions
- Vehicles
- Debts owed by or to the estate
Probate gives the legal authority to deal with these assets before they can be distributed to the beneficiaries.
Is Probate Always Needed?
No. Not every estate requires probate. Whether probate is needed depends on several factors, including:
- Whether the person owned property in their sole name.
- The value of their assets.
- The requirements of banks and financial institutions.
- Whether assets were owned jointly.
Some estates can be dealt with without applying for probate.
What Is a Grant of Probate?
If the person left a valid will, the executor named in the will usually applies for a Grant of Probate. This legal document confirms that the executor has the authority to administer the estate according to the person's wishes.
The Grant of Probate allows the executor to collect assets, settle debts and distribute the estate.
What Are Letters of Administration?
If there is no valid will, probate cannot usually be granted. Instead, the person entitled to deal with the estate applies for Letters of Administration. The person appointed is known as the administrator, rather than the executor.
Who Can Apply?
If there is a will:
The executor named in the will usually applies for probate.
If there is no will:
The law sets out who can apply to administer the estate, usually beginning with the closest living relatives.
The administrator has broadly the same responsibilities as an executor.
What Does an Executor or Administrator Do?
Their responsibilities may include:
- Registering the death (if not already done)
- Valuing the estate
- Identifying assets and debts
- Paying outstanding debts and taxes
- Applying for probate if required
- Closing accounts
- Selling property where necessary
- Distributing the estate according to the will or the law
- Redirecting the person's post (where appropriate).
- Keeping clear records of all money received and paid out.
Being an executor is an important legal responsibility and can sometimes take several months to complete.