If you have recently gone through the process of applying for probate, you will likely have some questions about what happens next. After applying for probate, you will need to wait for approval that your application has been successful. This could take around eight weeks to hear back and, at that point, the death certificate you submitted will be returned to you.
In this article, we will discuss administering the deceased’s estate once you have received the grant of probate or letters of administration, and how the process differs depending on whether the deceased left a Will or not.
If there is a Will
If the deceased left a Will, the Will itself along with any codicils (i.e. additions to the Will) will not be returned along with the death certificate as the document(s) will be stored by the probate registry for public records. When your application has been accepted, you will receive a ‘grant of probate’, this allows you to start administering the estate as Executor.
If there isn’t a WIll
In cases where there is no Will left by the deceased (i.e. they died intestate), you will receive ‘letters of administration’. This document essentially allows you to do the same thing as a grant of probate. It will enable you to start dealing with the estate as an administrator to the estate.
Administering the estate
Once you are appointed as Executor or administrator, you become legally responsible for the deceased’s estate. This can be a long process potentially involving paying debts, selling assets, paying taxes, and passing inheritance on to beneficiaries. Below is an overview of some of the responsibilities included when administering the estate. However, given the complexities of dealing with an estate, you should consider consulting legal specialists to help.
Settling debts
Before distributing inheritance to beneficiaries, it is important that the Executor/s or administrator/s pay off any creditors who are owed money by the deceased. One debt that should be paid is the cost of the funeral for the deceased. Beyond this, other debts which the deceased may have include:
- outstanding mortgage payments/rent payments
- any loans they had
- outstanding bills
- credit card balances/overdraft balances
Although you may not know of every creditor who may have been owed money by the deceased, you can place notices in The Gazette (an official record) which will give creditors notice that they must claim on the deceased’s estate. Doing this would protect you from any future claims. Failing to do this may lead to you becoming personally liable to these creditors in the future.
Selling assets
As Executor/administrator, you may have to sell assets in the deceased’s estate, either to pay debts, as mentioned above, or to satisfy the deceased's requests with regards to inheritance. Assets in the deceased’s estate may include:
- houses or land
- vehicles
- shares
- personal items/ antiques
For a lot of the deceased’s estate, you will need to prove you have been granted the right to administer their estate to have access to the property and the correct documentation required for selling it. You may have to deal with the Land Registry or the Share Registrar for some of the deceased’s property which can be burdensome. Additionally, it is important to check if any property was held jointly or in common as this can impact what ultimately falls within the deceased’s estate.
Bank accounts
It is important to inform the banks where the deceased held an account at the time of their passing. It is also important that you can access the funds held in these accounts and close the accounts down when the time comes. Normally, particularly if the amount of funds held in the bank account is high, the bank will need to see a copy of the grant of probate (and probably take a copy of it too). This is an important step in administering the estate as the sooner these funds are released, the sooner you can satisfy any creditors of the estate and distribute the remainder of the estate to the beneficiaries.
It may also be a good idea to open a bank account specifically for the proceeds of the estate you are administering. This can help avoid any confusion between your own assets and the assets you are administering.
Tax
There may be some tax implications which you have to deal with when administering the estate. For example, you may have to pay Income Tax if the estate generated income after the deceased died (for example, through interest). You may also have to pay Capital Gains Tax on any increase in value of the estate when you sell it compared to the deceased's date of death.
Beneficiaries
Finally, it is important to discuss the beneficiaries briefly. These are the people who will inherit the estate (after debts have been paid etc). You must know exactly who is receiving what. It is also wise to keep in contact with the beneficiaries throughout this process to ensure you do not mistakenly sell an asset they were entitled to or wished to keep.
Contact our Probate Solicitors in Central London
Dealing with the loss of a loved one is never easy, especially if you have been tasked with handling their estate. From the discussion above, you can see how administering an estate can be a complicated process with many moving parts. At Lewis Nedas Law, our probate team can provide guidance and support at every step. If you find yourself in need of advice, please contact us on 020 7387 2032 or fill in our online enquiry form.
