Put simply, and we stress simply, probate is the act of obtaining the ability to distribute a deceased's estate. However, even before those dealing with an estate commence the undertaking, they will invariably have to: -

1. Register the death and obtain copies of the death certificate, several may be required not only before the funeral takes place but also for each of the funds that may have to be released or transferred e.g. bank accounts, insurance policies, shares and other equities. Try to gauge how many copies are needed. Many organisations will need sight of an original Death Certificate before releasing funds. Copies obtained from the Registry of Births Deaths and Marriages are regarded as 'originals' as opposed to a photocopy of the certificate.

2. Arrange the funeral, the cost will usually be the first expense paid for from the deceased's estate unless they had had the foresight to purchase a Prepaid Funeral Plan (see our page), these are becoming increasingly popular with people wishing to protect their family from the effects of the horrendous increases in this 'service' over recent years.  

3. Apply for the power to act, contact the local probate office and if the deceased has a left a legally valid Will their nominated executor(s) will be able to apply for a grant of representation (the grant), which is required unless the estate is under £5,000. The grant is a legal document which confirms the Executor(s) have the authority to deal with the estate, if no Will has been left, can not be found or the nominated executor(s) resign their appointment, then those who meet certain criteria can apply to the court to be the administrator of the estate and if accepted they will receive 'letters of administration'.

Assuming the grant or letters of administration have been obtained, what has to be done?

1. Open a Personal Representative's bank account. This will be used for the receipt of money due to the estate and any loan arranged to pay an Inheritance Tax bill and/or probate fees.

2. Inform all relevant persons and organisations - banks, building societies, life assurance companies, employers, local authorities, Inland Revenue, DVLA, benefit agencies etc.etc of the event.

3. Arrange for a valuation of the Estate. This will include all property, whetehr here or abroad and contents, other personal effects, investments, savings plans, equities, life policies, building societies etc. Draw up a detailed schedule of all the Testator's assets.

4. Draw up a full schedule of debts that must be paid from the proceeds of the Estate. These will include mortgages, income and capital gains taxes, bills, credit cards, loans and overdrafts.

5. Complete the forms required by the Inland Revenue Capital Taxes Office so that it can be established whether any Inheritance Tax is due.

6. Complete the probate forms and send or take them to the Probate Office along with the original WiIl (a copy is not acceptable), the death certificate and the Inland Revenue account.

Subsequent Duties...

7. Provided all is fairly straightforward, an appointment will be made for the personal representative to 'swear the papers' within about 5 - 6 weeks of receipt at the Probate Office

8. When Inheritance Tax is due the executor's account of the estate is passed to the Inland Revenue, the Grant of Probate cannot be issued until the tax is paid. This is a subject in it's own right, suffice to say if there is an IHT bill, how it is paid will depend on the availability of assets to pay it, i.e. if it will be settled from liquid or property assets. There may be circumstances where part of the estate has to be sold to pay IHT which the revenue will not allow and so a bridging loan may be required to settle the liability first, so the asset can be sold by the executor(s).

NB. Whilst the current IHT nil rate is £285,000... the revenue may require submission of appropriate papers on estates valued at or above £100,000

NB. If a testator has stated in their Will that any trusts are to be arranged, the executor(s) will have to address these too.

9. Copies of the Grant of Probate should be sent to everyone who owes money to the Estate. The Executors now have a legal authority to pursue any debts owing to the Estate.

10. When the Grant of Probate is received, the Estate can be divided according to the terms of the Will. The Executor must prepare and sign accounts showing who has received what from the distribution. They must be able to show that they acted in accordance with the terms of the Will in case there is any dissent from the family of the deceased.

11. All papers, including the Grant of Probate and the accounts must be safely stored for a period of 12 years.

Even though the above can only be an overview, we think you will agree that the role of executor can be fairly daunting. Having said this, the majority of those who have ever been involved will tell you that the most problematical part of their task was trying to find out just exactly what the deceased owned, had invested and where it was. So the best thing any of us can do, and it's not a bad idea for our own benefit either, is compile a complete and up to date inventory of our holdings for our executors.