If there is no Will, a close relative of the deceased can apply to the probate registry to deal with the estate. In this case , they apply for a ‘Grant of Letters of Administration’. If the Grant is given, they are known as ‘Administrators’ of the estate. Like the Grant of Probate, the Grant of Letters of Administration is a legal document which confirms the Administrator’s authority to deal with the deceased person’s assets.
Even if there is just one asset in the sole name of the deceased, it is likely that Probate could still be required. However, each case is unique and sometimes probate may not be needed, for example:
- where assets such as a property are in joint names – called joint tenancy. In these cases, the asset passes automatically to the surviving joint owner. However, most property is nowadays held as “tenants in common” and in these cases probate is always required.
- the person who has died has left very little (usually less than £5,000).
Whats Involved
Whether or not the person who has died left a Will, the estate will have to be administered. Some estates are very simple to administer while others are very complex. The Executors’ and Administrators’ duties include:
- identifying all the deceased person’s assets and valuing them as at the date of death
- accounting to HMRC for any Inheritance, Income and / or Capital Gains Taxes due
- obtaining the Grant of Probate or Letters of Administration
- gathering in all the assets, including any overseas
- settling all the deceased person’s liabilities
- preparing estate accounts
- identifying all the beneficiaries and locating any who are missing or unknown
- correctly distributing the estate to the beneficiaries
Who is Responsible
The Executors or Administrators are responsible for administering the estate and are accountable to Her Majesty Revenue and Customs (HMRC) and to the beneficiaries. The process of administering an estate can be quite time consuming and also sometimes daunting. Please talk to us before you start as we can help you assess your situation and point you in the right direction.