Administering an estate following a death can be a complex and time-consuming process, particularly where there are multiple beneficiaries, significant assets or potential disputes. Executors and administrators are subject to strict legal duties and can be personally liable if an estate is handled incorrectly.
This article explains what probate is, when it is required and the key steps involved in administering an estate in England and Wales.
What is probate
Probate is the legal process by which authority is granted to deal with a deceased person’s estate. Where there is a valid will, the grant issued is known as a Grant of Probate. Where there is no will, the authority granted is known as Letters of Administration.
The grant confirms who is entitled to administer the estate and provides the legal authority to collect assets, settle liabilities and distribute the estate to beneficiaries.
When probate is required
Probate is not required in every case. Whether a grant is needed depends on the nature and value of the assets in the estate. In general, probate is required where the deceased owned property in their sole name or held significant assets such as bank accounts or investments above the relevant institution’s threshold.
Even where probate is not required, executors or administrators must still ensure that the estate is administered properly and that all legal and tax obligations are met.
The role and responsibilities of executors and administrators
Executors and administrators owe duties to the beneficiaries of the estate. These duties include identifying and securing estate assets, paying debts and liabilities, dealing with tax obligations and distributing the estate in accordance with the will or intestacy rules.
Failure to comply with these duties can result in personal liability. This makes it important for those appointed to understand their responsibilities and seek advice where appropriate.
Valuing the estate and dealing with inheritance tax
One of the first steps in administering an estate is establishing its value. This involves identifying all assets and liabilities as at the date of death. Accurate valuation is essential, particularly for inheritance tax purposes.
Inheritance tax may be payable depending on the value of the estate and the availability of reliefs and exemptions. Executors and administrators are responsible for submitting the relevant inheritance tax forms and ensuring that any tax due is paid within the required timescales.
Applying for the grant
Once the estate has been valued and the relevant tax position addressed, an application can be made for the grant of probate or letters of administration. This application must be supported by appropriate documentation and declarations.
Delays or errors at this stage can significantly slow down the administration process. Careful preparation helps ensure that the application proceeds smoothly.
Collecting assets and settling liabilities
After the grant has been issued, the personal representatives can collect in the estate assets. This may include closing bank accounts, selling property, encashing investments and dealing with business interests.
Outstanding liabilities must also be settled, including funeral expenses, debts and any final tax liabilities. Proper records should be kept throughout this process.
Distributing the estate
Once assets have been collected and liabilities settled, the estate can be distributed to beneficiaries. Distributions must be made in accordance with the will or, where there is no will, the intestacy rules.
Personal representatives should ensure that appropriate protections are in place before distributing the estate, particularly where there is a risk of claims or disputes.
Common issues in probate administration
Probate matters can become more complex where estates involve property, business interests, overseas assets or disagreements between beneficiaries. Delays often arise where records are incomplete or where tax issues have not been properly addressed.
Early legal advice can help identify and manage these issues, reducing risk and avoiding unnecessary delay.
How we can help
We advise executors, administrators and beneficiaries on all aspects of probate and estate administration. Our work includes obtaining grants, administering estates, advising on inheritance tax compliance and providing ongoing support to those responsible for managing estates.
Our approach is clear, structured and proportionate. We guide clients through the probate process, ensuring that estates are administered efficiently and in accordance with legal requirements.
If you are acting as an executor or administrator, or require advice in relation to an estate, please contact us to discuss how we can assist.
Frequently Asked Questions on Probate
What is the difference between probate and letters of administration
Probate applies where the deceased left a valid will and executors are appointed. Letters of administration apply where there is no will or no valid executor. Both grants provide legal authority to administer the estate.
How long does probate take
The timescale varies depending on the complexity of the estate. Straightforward estates may be completed within several months, while more complex estates can take a year or longer. Delays often arise where tax issues or asset valuations are involved.
Can an executor deal with an estate without a solicitor
Yes, executors can administer an estate themselves. However, probate can be legally and administratively complex. Many executors choose to instruct solicitors to reduce risk, manage tax compliance and avoid personal liability.
What happens if there is no will
If there is no will, the estate is distributed in accordance with the intestacy rules. These rules set out who is entitled to inherit and in what proportions. Letters of administration must be obtained before the estate can be administered.
Are executors personally liable
Executors and administrators can be personally liable if they distribute an estate incorrectly or fail to meet their legal obligations. This is why proper advice and careful administration are important.
When should inheritance tax be paid
Inheritance tax is usually payable within six months of the end of the month in which the death occurred. Interest may accrue if payment is late. Executors should address inheritance tax early in the administration process.
Can probate be contested
Probate itself can be challenged in certain circumstances, such as where there are concerns about the validity of a will. Separate claims may also arise in relation to the distribution of an estate. These matters fall within contentious probate and require specialist advice.
Do all estates pay inheritance tax
No. Many estates fall below the inheritance tax threshold or benefit from reliefs and exemptions. Each estate must be assessed individually to determine its tax position. Contact Us to find out more.