Dealing with someone’s estate after they have died is a stressful and complicated process. Probate must be acquired in order for Executors or Administrators of the estate to begin distributing it. This article will go through the different steps necessary to take before probate will be granted by a court, including registering the death of the deceased, collating important documents, contacting institutions, estimating the estate, and paying any relevant taxes.

Register the death

You need to register the death of the deceased within five days of their death. This requires contacting the registry office (usually the best one to contact is in the area the person died) and obtaining a death certificate. You may wish to get extra copies of this. 

Collate the Will and other important documents 

It’s vital that you find out whether the deceased left a Will or not. You may have been informed already or you may have to enquire. A solicitor’s office may have a copy of the Will. You will also need to investigate other important documents to see what assets the deceased had and where the deceased held accounts (for utilities, bank accounts etc). It is a good idea to start looking in desks, offices, drawers etc for important information which you might need.

If the deceased did not have a Will, they are said to die ‘intestate’, and their estate will be divided according to intestacy rules.

Contact the relevant institutions 

Once you have collated all of the important information about the deceased, you will need to start contacting relevant institutions. These companies or other places need to know about the deceased’s death because they had some form of business with them. 

Relevant institutions include:

• banks which the deceased had accounts with,
• investment companies,
• pension companies, 
• insurance providers,
• utility companies, and
• lenders. 

In most cases, these institutions will require to see a death certificate, which is why it may be wise to buy extra copies. Once they receive notice of the deceased’s death, the institutions will freeze any accounts held by the deceased. You will not be able to access these accounts or any of the deceased’s property at this stage – probate is still required.

Estimate the estate 

The next thing to do before applying for probate is to value the estate (i.e. everything owned by the deceased). This is the duty of the Executor. You will need to consider all of the deceased’s assets and liabilities. Assets may include:

• property (such as houses and land), 
• vehicles, 
• shares,
• money in the bank,
• antiques,
• jewellery, and 
• furniture.

Liabilities may include:

• unpaid utility bills,
• mortgages,
• loans, and  
• unpaid credit card bills. 

You must also consider whether any property was owned jointly by the deceased. It is possible to value any houses or land by looking at comparables on property search sites. 

Still, it is also advisable to obtain expert valuations in order to repel any queries HMRC raises concerning tax levels that may be due on the estate. 

The Executor should also note any gifts made by the deceased within the seven years before their death as this is important for the calculation of the estate in relation to inheritance tax (IHT).

It is possible that the deceased left an inventory of their assets with values attached. However, this is not common. It is advisable if you are an Executor of someone’s estate that you discuss their estate with them and consider keeping track of gifts, purchases, and the inflow and outflow of assets to their estate. This can make the process of valuing the deceased’s estate much less daunting and time-consuming.

No matter the size of the estate or the level of preparation done, estimating an estate can be a complex process. Obtaining advice from a probate solicitor who can guide you through this and ensure that an appropriate estimate is highly beneficial.

Pay the relevant taxes  

The final step before applying for probate is to pay any IHT which may be due on the deceased’s estate. You will need to fill in IHT forms using your estimation of the estate. 

Generally speaking, IHT applies to estates with values above £325,000. Any value above this limit is taxed at 40%. However, there are many rules concerning extra allowances in certain situations, such as when you leave your home to your children or when your spouse or civil partner died before you and did not use all of their allowances. 

There are also certain rules about charitable giving in relation to IHT. As mentioned above, you also need to consider any gifts the deceased gave within the last seven years of their life and report these to HMRC. 

Probate will not be granted before the IHT issues are dealt with. These issues can become very complex for those considering their estate and for Executors considering the estate of another.

Contact our Probate Solicitors in Central London today 

There is a lot to do before applying for Probate in what is already a stressful time. Our team at Lewis Nedas Law can help take some of this stress away and help you through this process from start to finish. Contact us on 020 7387 2032 or fill in our online enquiry form to get help from our team.