What you need to do following a death 1. Register the death Register the death with the registrar of births deaths and marriages for the area where the person has died. You normally need to register the death within five days. It's best to go to the registry office for the area where the person died. Otherwise it may take longer to get the documents you need and this could delay the funeral. It will take about half an hour to register the death. You may need to make an appointment beforehand. You can find the closest Registrar by clicking the following link http://maps.direct.gov.uk/ldgredirect/mapaction.do?ref=grolight 2. Tell the Bank and Insurance Companies Tell the deceased person s bank and building societies. The accounts are then frozen, except that the funeral bill can be paid from the person s account if it is in their sole name. The home and contents insurance company must also be told or they may refuse to pay any claim after the date of death. 3. The Funeral Check the Will or other written instructions for special wishes about the funeral, or what should happen to the deceased s body. However, the executor isn t legally obliged to follow the instructions about the funeral left in the will. If there are no clear wishes, the executor or the nearest relative will usually decide if the body will be cremated or buried. It is normal, though not obligatory to use a funeral director (undertaker). Funeral directors can charge different amounts for the same service so try to get more than one quote. The service can be in a church, crematorium or another place of your choice. The funeral director will be able to help you choose. Celebrants If you choose to have a non-religious service you may want some help with planning and running the service. Celebrants will help you to celebrate a person s life. For more information see www.humanism.org.uk or search celebrants and the area in which you are organising a service e.g. celebrants Somerset 4. How to pay for the funeral The deceased person s bank should be prepared to pay the cost if they have sufficient funds. Alternatively the deceased person may have paid for their funeral in advance, using a prepaid funeral plan. Check the person s paperwork and if there is a plan, get in touch with the company. If there is no available cash, you may have to pay the funeral director s costs and recover them from the estate later, or the funeral director may be prepared to wait to be paid until Probate has been granted and assets can be released.
5. What is Probate? When someone dies it is necessary to deal with their money, property and possessions (known as "the estate") by collecting in all the assets in the estate, paying any debts and distributing what is left to those people entitled to it. After a death all the person s assets are frozen, and cannot be released or sold until Probate is granted with the exception of paying the funeral account and any inheritance tax, which may be due. The executors have to do a full inventory of the entire person s assets and liabilities, fill in various forms and apply to the Probate Registry to obtain Probate. Probate is a court document, which gives the court's authority to administer a deceased person s estate. It is normally issued to the executors named in the Will, but if there is no Will it will be issued to a close relative. This document is sometimes referred to as the Grant of Representation. This court document is usually required by the asset holders, such as the banks, as proof to show the correct people have authority to administer a deceased person s estate. They will not release the assets to the executors until they have seen the grant of Probate. So, in answer to the question what is probate? It is simply a piece of paper, but an important one. Without it the deceased person s estate is frozen and cannot be distributed to the beneficiaries. 6. How do I get Probate or Letters of Administration? The first job is to find out if the person left a Will. If they did the Will should nominate executors, who are the people entitled to obtain Probate. If there is no Will a Grant of Letters of Administration is obtained, instead of a Grant of Probate. There is a proscribed list of who can apply for a Grant of Letters of Administration. The first person entitled is any surviving spouse, and then issue (the children) followed by parents then siblings. They will be known as Administrators. The Executors or Administrators need to find out exactly what assets and debts the deceased person had. These are typically: money in bank, building society or savings accounts houses and land businesses, or business assets, owned by the deceased (or a business partnership of which they were a member) investments such as stocks and shares personal belongings, including jewellery and antiques furniture, fixtures and fittings in a house motor vehicles pensions that include a lump sum payment on death (as opposed to an on-going annuity to a surviving partner) assets in a trust from which the deceased benefited payouts from life insurance policies foreign assets held abroad including foreign bank accounts, property or shares Once the executors or administrators are sure they have identified all the assets and liabilities they can apply for Probate or Letters of Administration. How this is done will depend on whether there is inheritance tax (IHT) to pay on the estate.
When a grant of Probate or Letters of Administration is needed You will almost certainly need a grant if the estate includes: assets worth more than 15,000 in total land or property in the sole name of the deceased, or held as tenants in common with someone else. You can find out whether property is held as tenants in common by looking at the deeds, though you may need help from a solicitor. stocks or shares some insurance policies Whether probate is required depends upon the value of the Deceased persons assets. If someone had assets over 15,000 in total, then the bank or building society will always require a Grant of Probate or Grant of Letters of Administration, as the Grant provides the authority for the Executor or Administrator to collect the deceased persons assets. Probate would also be required if the deceased person left a property. Sometimes Probate isn't required. For example it isn t needed when the value of the deceased person s assets is very small or when the majority of the assets are held jointly and the assets pass automatically to the surviving joint holder. 7. Applying for a grant of Probate or Letters of Administration Inheritance Tax (IHT) You'll have to fill in an Inheritance Tax (IHT) form even if the estate doesn t owe Inheritance Tax. The estate will only owe Inheritance Tax if it's over the threshold ( 325,000 in 2011-12). On the death of the second spouse the threshold is 650,000 (in 2011-2012)if the first spouse to die did not use up any of their own nil rate band. Typically if the first spouse to die left everything to the surviving spouse there will be a nil rate band of 650,000 available on the second death. The Inheritance Tax forms you need depend on the following: the size of the estate whether it is an 'excepted estate' (less than 325,000 in 2011-2012) less than 1,000,000 and there is no IHT to pay because of spouse, civil partnership or charitable exemptions Usually, if an estate has no Inheritance Tax to pay, it will be an excepted estate and the form to complete will be IHT 205. If someone leaves all their estate to their surviving spouse there is no inheritance tax to pay so it is only necessary to complete form IHT 205. However, this is not always the case. Some estates that don't owe Inheritance Tax still require a full Inheritance Tax account. This form is called IHT 400 and is longer and more complex. Executor s oath If the executors use a solicitor they will have to complete an oath which will be prepared for them by the solicitor. The executors will have to go to a solicitor (not the one who has prepared the oath on their behalf) to swear it, and pay a small fee of 7 and an additional 2 for any additional codicil which will be paid out of the deceased person s assets. If you don t have a solicitor you don t swear an oath, but the executors complete a different form, PA1, then they will have to attend an appointment at a Probate Registry for an official interview to answer questions about the estate.
Can I get Probate myself? Yes it is possible, and there are useful websites such as: http://www.direct.gov.uk/en/governmentcitizensandrights/death/preparation/dg_10029799 However there are some downsides: Do not underestimate the work involved, particularly where there are a number of assets or beneficiaries. All have to be written to several times, forms have to be completed correctly and signed by the executors. If there are trusts created in the will it is essential to either disband them correctly or ensure they are properly set up and registered with HMRC. Things done incorrectly can come back to bite you many years later, possibly after the second parent has died. There is great potential for families to fall out at a time of loss and stress. Using the right independent advisor can be very helpful in diffusing and handling tricky issues between relatives. Old wounds can easily be reopened if not sensitively handled. If you do it without a solicitor you will have to fill in an extra form, pay a fee of 105 and attend an interview/appointment at a Probate Registry. There is usually a delay of a few weeks before you get an appointment so the process will be slowed. The official fee if you use a solicitor is 45 plus 1 for each additional sealed copy of the Grant of Probate or Grant of Letters of Administration. Many solicitors are prepared to complete the IHT form for you and submit it to the Probate Registry, but you can do all the other work involved in winding up the estate and distributing the assets. The fee the solicitor charges should be relatively modest. As an executor you will be personally responsible if something goes wrong. For example if you find out after you have distributed the assets to beneficiaries that the deceased person owed someone some money you may have to pay the creditor yourself. A solicitor can help to protect you from this personal liability. It is increasingly common for people to make claims against an estate under the Inheritance (Provision for Family and Dependants) Act 1975. For example, someone who was financially dependent on the deceased during their lifetime, or a cohabitee of the deceased person can make a claim. Using a solicitor will help protect you against personal liability if someone comes forward with a claim. 8. How should I choose a solicitor? Frequently people go to the solicitor who drew up the Will and are holding it in their firm s safe. However there is no obligation to use that solicitor. Even if the solicitor is named as the executor in the Will you can ask them to sign a Deed of Renunciation if you do not want them to act as Executor. You should always talk to the person who will be doing the work to satisfy yourself that they are competent and you will be happy to work with them over the next few months. You will have a lot to do with them. You should also ask them for a quote and check this against another firm. You would not normally buy a service without shopping around and this should be no exception.
The firm of solicitors does not have to be physically close to where the person died or to the Executors as communication can take place by phone, email and even old-fashioned post. Purely Probate is always happy to give quotes over the phone and have an initial discussion about the process. They will not charge for this. 9. How long will it take? The length of time to administer an estate depends entirely upon the size of the estate, and the nature of the assets held by the Deceased. The starting point with the Probate or Administration process is to obtain details of the assets and liabilities. This will involve writing to various financial institutions and banks etc, they will need to confirm the value of the Deceased's assets at the date of death. If the estate is under the Inheritance Tax threshold then typically a Grant of Probate is obtained within a few months or even weeks. If the estate involves inheritance tax issues then the estate administration can take much longer, as very specific Inheritance tax valuations will have to be undertaken in order to ensure that inheritance tax return is completed correctly, and any Inheritance Tax paid. The Inheritance Tax return must be filed within 6 months if IHT is due. Probate takes an average of 3 to 4 months if no inheritance tax is payable and between 5 to 9 months if Inheritance Tax is payable. Claims can be made against the estate under the Inheritance (Provision for Family and Dependants) Act 1975 within 6 months from the date of the Grant of Probate or Grant of Letters of Administration, so the Executors may wish to delay distributing the estate. 10. Frequently asked questions Can I sell the car? Property such as furniture, clothing, jewellery and cars can normally be sold without the Executor having to prove to the buyer that they are entitled to sell such items. Occasionally, a Grant of Probate or Grant of Letters of Administration will be required to prove entitlement, if for example the deceased's jewellery is deposited at a bank. If the estate is small and a Grant of Probate is not required then the car can be sold and the money transferred to the entitled beneficiary. If the Estate is sizeable and IHT forms have to be completed it would be safer for the Executor s to wait until Grant of Probate has been obtained and the Executor can then sell the car, and other moveable property. How much will it cost to use a solicitor? This can vary enormously, which is why it is important to shop around. At Purely Probate we charge from 1,000 for a very simple estate ( 500 if we are just completing the IHT 205 form and executors oath). Ring us to find out, we don t bite! Purely Probate Solicitors Tel: 01458 850146 Higher Farm www.purelyprobate.co.uk West Bradley Somerset BA6 8LT Authorised and regulated by the Solicitors Regulation Authority - SRA No 555396