PROBATE
TO DO:
-Check if you need to do probate
-Find you loved one’s will and who the executors of it are
-Decide if you are applying for probate yourself or using a specialist e.g. solicitor
Probate is basically the legal term for the process of administering and distributing the estate (i.e. property, money, personal possessions etc) of someone who has died.
It’s incredibly boring but important. You might have heard about house sales ‘getting stuck in probate’. What this means is that the property can’t be sold because the legal process of settling the estate (i.e. what should happen to the things and money your loved one owned) hasn’t finished yet.
Probate also helps determine if or how much inheritance tax (IHT) has to be paid to the government's tax department HM Revenue & Customs (HMRC).
You can save money by sorting out probate yourself - you apply online or by post - but read the Department for Work and Pensions’ Money Helper website and the government’s probate guidance to decide if you need someone to do it for you. The brilliant Martin Lewis’ website Money Saving Expert also has a great section on how to do probate yourself.
Depending on your financial circumstances (particularly if the person who died had complicated finances or owned property abroad) we advise taking financial/legal advice to see if it might be cheaper or quicker in the long run to get a solicitor/accountant/probate specialist to apply for probate on your behalf.
WHO NEEDS TO DO PROBATE?
Each case is individual but probate is usually needed if:
The total value of the estate is worth more than £10,000
The estate includes a number of solely-owned assets
The government's website says you, "may not need probate if the person who died only had savings, owned shares or money with others (they automatically pass to the surviving owners unless they've agreed otherwise) or they owned land or property as 'joint tenants' with others" as those assets pass automatically to the surviving owners.
HOW DOES PROBATE WORK?
As a rough guide, when someone dies and their spouse is still alive, everything goes to the remaining partner and HMRC pay little attention.
However, if the deceased was on their own, HMRC are quite rigorous and the moment probate is granted they set a clear timeline for all inheritance tax bills to be paid.
You will need to check in the will, if you’ve not been told already, who the executors of your loved one’s estate are - it may even be you! Executors are people named in the deceased’s will to manage their estate after their death.
To reiterate what we said on the Inheritance Tax page, in most cases, IHT must be paid within six months from the end of the month in which the death took place, otherwise interest is charged on the amount due. The executors of the will can choose to pay the tax on certain assets, such as property, by instalments and a solicitor can ask for a time extension in court, but you may still be charged.
If you need to sell a house/flat whilst you are getting probate, you may need to ask for an extension to be granted by HMRC, so do make sure your solicitor is in the loop. The government’s website advises: “You should not make any financial plans or put property on the market until you’ve got probate.” More details on getting a extension of the deadline by which you have to pay here.
HOW TO GET PROBATE
You can start the process online via the government website.
Be warned you may have to pay: as of February 2025 it costs £300 to apply for probate if the estate is worth over £5,000 but costs nothing if it’s under that amount.
To apply you’ll also need certain documents including:
The details of the deceased
Their will
Your details
An estimated value of the deceased’s estate (use the govt’s inheritance tax checker)
To warn you, although the government website says probate takes around 12 weeks, it can take quite a long time, depending on the circumstances of the person who died and how long the courts are taking to process probates. They're dealt with via the Probate Register and HMRC's courts.
This can be particularly hard as you may find that you have to end up paying some bills (eg. if the deceased had a mortgage they were paying on their home) and reclaiming them once probate has been granted.
After someone dies, first you need an estate valuation (see the page on inheritance tax) then you need either a 'grant of probate' or 'letters of administration'. They both work in the same way and are needed to settle the deceased’s affairs e.g. access bank accounts, settle debts and bills, sell assets and distribute assets in accordance to the will, if there was one.
If the person left a will then a 'grant of probate' is needed. This can sometimes take up to three months to get in our experience.
If there was no will then 'letters of administration' are needed.
Both of these documents give the named person legal authority to deal with the estate of the person who has died.
We've just given you the basics here. Many people hire a solicitor or a professional probate provider to deal with the probate application on their behalf and we would advise this since it can be quite a daunting process, the forms can be complex and any mistakes can slow down the process.
This government link about probate will help give more details.
WHAT HAPPENS ONCE YOU’VE GOT PROBATE?
Once probate has been granted, there is often quite a bit of estate admin to deal with.
This includes:
Completing an inheritance tax return and paying any taxes due – such as inheritance tax, income tax or capital gains tax
Putting the house/flat on the market (if there is one) and overseeing the sale – or transferring the property to beneficiaries
Closing bank accounts and collecting funds in one place
Contacting pension providers to access funds
Claiming on any life insurance policies
Repaying any outstanding debts owed by the deceased
Distributing funds to the beneficiaries
AND FINALLY
It may seem a lot to do, but rest assured, you will get through the paperwork, take each day at a time. Accept offers of help from friends and relatives to get it done and know there will come a time when all your sadmin is finishing and you can focus on remembering and treasuring the special times you had with your loved one.
Have a look at our Instagram too for updates and to share thoughts and queries.
Links:
Citizen's Advice
Government advice about probate
Photo: Will Hulbert Photography