What is Probate?
Most people have heard the term “Probate”, however far fewer are aware of what it means. The following is some Probate Guidance from TRF Wills.
Just because we have a Will, that does not automatically mean that after our death the people dealing with our affairs can immediately begin sharing out our estate.
If there is a Will, then the people dealing with an estate are called “Executors”, and if there is no Will, then those people are called “Representatives” instead.
Applying for a Grant of Probate is a request for official legally valid permission by Executors/Representatives to distribute an estate to the beneficiaries of a Will. Or according to the law (known as the Law of Intestacy) if there is no Will.
When is a Grant of Probate Required?
A Grant of Probate will usually be necessary if any of the following situations apply to a deceased person.
They own property in their sole name or jointly as a “Tenant in Common”* with another person; and/ or
Have significant savings (approximately £25,000 plus) in one bank account or Personal Equity Plan (PEP) or Individual Savings Account (ISA), or Investment/Premium Bond holding; and/ or
They hold more than approximately £10,000 in one shareholding (e.g., BT, Santander, Glaxo SmithKline, etc.)
(The variance in the above figures is due to differing requirements between the various banks, investment companies and shares administrators).
If any of the above apply, then the Executors of a Will or Representatives of an estate must obtain permission from a government department known as the Probate Registry before the estate can be distributed to the beneficiaries according to a Will, or the law if there is no Will.
Only once the Executors/Representatives have obtained this Grant of Probate from the Probate Registry can they then commence with fully collecting in and then distributing the relevant assets of a deceased person’s estate.
How can I obtain a Grant of Probate?
It is a myth that you must use a solicitor firm to obtain a Grant of Probate, and this is an extremely expensive and unnecessary route to take. It is not uncommon to pay over £5,000 to a solicitor to obtain a Grant of Probate, and so-called “legal services” firms can often charge even more than this. Be aware, it is an unregulated and inconsistent marketplace where practitioners are free to charge whatever they like. It pays greatly to shop around for a more cost-effective and local service. Such companies prey upon Executors/Representatives when they are often vulnerable. Executors/Representatives are often also beneficiaries of an estate, so they may not miss several thousand pounds if they are set to inherit a far greater amount.
However, it benefits ALL beneficiaries for as little as possible to be expended in probate costs, as they all then receive a greater share of an estate value as a result.
Local Probate Guidance
Some Executors are confident enough to apply for a Grant of Probate directly from the Probate Registry. However, if Executors/Representatives are not confident to apply to the Probate Registry directly, they need not spend more than £1,000 to obtain the same outcome, merely by carrying out some worthwhile research. This can easily be achieved by using a local Probate Guidance service instead. As a result, Executors/Representatives obtain lower-priced full guidance to obtain a Grant of Probate. This also usually enables a quicker conclusion, which can be very important if land and/or property needs to be sold. The sale of land and property cannot complete until the Grant of Probate has been obtained.
*Property owned by more than one person as JOINT TENANTS means that if one co-owner dies, then the surviving co-owner inherits the deceased’s interest in that property outright by law and this does not require a Grant of Probate. However, property owned jointly as TENANTS IN COMMON means that each co-owner is free to gift their share of a property to people other than their co-owner, so a Grant of Probate will usually be required to achieve this.
For further information about local Probate Guidance Services in the Devon and Wolverhampton areas, without fear of consultation fees or obligation, THEN please visit our Probate page.
TRF Wills (TRF) was created by Michael Cotterill in 2005. He is a member of the Society of Will Writers and registered with the Information Commissioner’s Office.