Probate Questions and Answers with Katherine Millman
When you agreed to become the Executor of a Will, you were probably unaware of the time it would take and the potential risks to yourself. You become responsible for sorting out the money, property and possessions, let alone debt and people contesting the Will, so it’s important you seek professional advice.
Katherine Millman, head of the Private Client department with over 12 years’ experience, has answered the most important and frequently asked questions surrounding the process of Probate and broken down the key steps to help you navigate the process successfully and with confidence. Here’s what you need to know:
1. What is the role of an executor, and what responsibilities does it entail during the probate process?
An executor is responsible for carrying out the deceased’s wishes from their Will. They must settle any taxes, make sure assets are secured and insured and then sell or pass on the deceased’s property, investments and bank accounts to the beneficiaries. Usually, a Grant of Probate is required to enable the assets to be encashed or transferred to the beneficiaries and the executors would therefore need to make an application to the Probate Registry to receive this document.
2. How can an executor ensure a smooth and efficient probate process, and what are the common challenges they may face?
Being an executor can be challenging; it is a big responsibility to ensure all taxes are paid and that the deceased’s wishes are carried out properly.
It is importance to take advice to ensure an executor has done everything they can to make sure they do not become personally liable for any payments.
Executors can protect themselves by ensuring the Will is accurately followed and the tax has been fully paid, by placing statutory notices and waiting until time limits have passed for claimants to come forward.
Some people mistakenly believe that debts die with the deceased. However, creditors can often come forward to claim money from an estate after someone has died and dependants such as family members can make claims against the estate regardless of what is written in the Will.
3. What are key steps involved in the probate process, and how long does it typically take to complete?
The first steps when someone dies are to register the death and sort out the funeral, as well as making sure the assets are insured.
Once the executors have a death certificate, they can then notify all asset holders, the Revenue, pension holders and creditors to the death, and in doing so obtain valuations of the assets and liabilities at the date of death.
The valuations are then used for an application to the Probate Registry for a Grant of Probate (if required).
Once a Grant has been received, any property can be sold and investments and bank accounts encashed.
Once the assets have been realised, they can then be distributed in accordance with the Will.
If a Grant of Probate is required to deal with a deceased’s estate, because of delays with the Probate Registry and the Revenue, it can be up to 4-6 months before a Grant of Probate is received.
4. What factors determine whether an estate needs to go through probate?
Each bank has a threshold of how much they will release from a deceased’s account before they require a Grant of Probate; this can differ from £5,000 to £50,000. If, however, the deceased owned a property in their sole name then a Grant will be required regardless of whether or not the bank requires this.
5. What legal obligations does an executor have to fulfil, and how can they avoid potential disputes or conflicts among beneficiaries during probate?
In recent times families have become more complicated and personal wealth has increased resulting in larger numbers of claims being made against estates after a person has died.
As an executor is responsible for paying any Inheritance Tax and ensuring the beneficiaries receive what they are entitled to under the Will, it is important that they protect themselves and take advice to ensure they have done everything they need to do to prevent the Revenue, beneficiaries or other creditors coming after them for any money due.
6. Are there any tax implications associated with probate, and how can an executor navigate these efficiently to maximise the assets left for beneficiaries?
It is the responsibility of the executor to ensure all tax paid before the estate is distributed to the beneficiaries.
Each person has an Inheritance Tax allowance of £325,000, however, this may have been already used during the deceased’s lifetime by making gifts. The threshold can also be increased if the deceased benefitted from an unused threshold from a late spouse and in addition to this, a residential nil rate band can also be available in certain circumstances allowing some estates up to £1,000,000 before Inheritance Tax is payable. This depends on the deceased’s circumstances and who is inheriting their estate, so it is vital that executors take advice to ensure they are claiming everything they need to, to ensure the maximum amount is available to the beneficiaries.
As well as Inheritance Tax, the executor must also ensure that any income tax returns required are also submitted for the period up to the date of death and the period of administration.
More about Katherine’s work
Katherine is not only a partner of the firm, but also the head of the Private Client department at Howard & Over. Having qualified in 2010, Katherine has over 12 years’ experience specialising in Wills, Probate and Estate Planning. Her deep understanding of the many nuances within the realm of Private Client law has positioned her as a trusted advisor for those seeking guidance on such matters.
If you need a Private Client Solicitor to support you through matters of Probate; contact Katherine today.
