Swansea

When someone has died in order to realise their assets and pay any debts you need to apply for a document that gives you the authority to act on their behalf. This is known as the grant of representation. When there is a will it will appoint executors to act and these are the people who have to apply for a grant of probate to administer the estate.

Where there is no will the person is said to have died intestate and there are rules set out as to who will be the person who will be appointed what is known as their administrator and then the rules dictate how the estate is to be divided.

The probate process explained

The Probate process often involves a lot of complicated legal, tax and financial work. We have broken it down into 4 steps

Step 1: We will identify the deceased’s assets and liabilities in order to determine the value of their Estate.

Step 2: We will prepare the application forms and IHT forms and pay any money due to HMRC in order to obtain the grant of representation

Step 3: After the grant of representation has been issued by the Probate Registry we are able to close bank accounts, sell shares or property and turn the assets into a fund which we will hold safely on our designated client account. This will enable us to discharge any debts and administration expenses. We will prepare accounts showing all of the transactions (estate accounts) and send it to the personal representative for approval before any monies are paid to beneficiaries.

Step 4: Once everything is agreed we will arrange the transfer of any assets that the beneficiaries wish to retain then distribute the balance of the Estate funds.

Whether or not a grant is needed depends on what assets the deceased person owned, and whether they owned them in their sole name. Where assets are owned jointly there will usually be no need to apply for a grant as the assets will automatically pass to the surviving joint owner. Where there is no property and only a small amount in bank accounts then again usually there is no need to apply for a grant. Different banks have different thresholds but some are able to release up to £50,000 to the next of kin on the basis of a signed letter of indemnity. We can help you decide if a grant is required and in over half of the enquiries that we deal with there is no need to obtain a grant and with one call to us we can explain what you need to do to deal with the estate. The question of whether or not a grant will be required is a confusing one and so for guidance please call us for free no obligation advice.

In England and Wales, inheritance tax (IHT) typically has to be paid when an individual’s estate is worth more than £325,000 when they died. We offer free initial advice and our fixed fee complete estate administration service deals with the question of inheritance tax and ensures that the appropriate exemptions are applied. The £325,000 figure is the current inheritance tax threshold and in addition to this there are additional exemptions where property is left to a direct descendant which can mean that an individual can have up to £500,000 tax free before inheritance tax is paid. Inheritance tax currently is charged at 40% although a lesser rate can be applicable for certain assets or beneficiaries. In addition if a spouse has predeceased their unused IHT allowances can be utilised and taken into consideration which can mean that up to £1m of assets can be exempt in certain circumstances. There is no IHT between spouses. In order to get a grant of representation the Inland revenue will need to see details of the value of the estate to calculate if tax needs to be paid. The grant of representation will not be issued until such time as any tax has been paid. When you choose our complete estate administration service we will take care of the relevant inheritance tax matters as part of the administration of the estate. For advice on inheritance tax or any aspect of estate administration, please contact us today.

Obtaining the Grant of Representation and administering an estate typically takes between 3-12 months to complete and can take longer where there is a property to sell.

Every case is different but generally very straight forward cases can be concluded in as little as 3-6 months but complex cases can take over 12 months to finalise.

We will keep you advised throughout the process particularly if we anticipate encountering significant delays. We are very pro-active in managing the matter and our case management system ensures that matters are reviewed and actioned regularly.

Our aim is to deal with the administration as quickly as possible and we would expect the following timescales to be achieved:

1. Month 1: taking initial instructions and requesting the account balances
2. Month 2: preparing and submitting the application for the grant of representation
3. Months 3-4: receiving the grant of representation. With straight forward cases the grant will be received within 1 month but more complex matters can take 2-3 months for the grant to be issued
4. Months 4-6: receiving account balances and paying liabilities – placing statutory notices if applicable which have a 2 month notice period
5. Months 6-12: Finalising the administration of the estates, transferring property and accounting to beneficiaries

Because every estate is different, the above timescales are just estimates and we will be able to give you a more specific time scale when we know the complexity of your matter.

If there is no will the estate may not be distributed as you would expect as there are strict rules that apply to determine who will inherit.

What are the rules?

When someone dies without a valid will there are strict inheritance laws, often referred to as the Rules of Intestacy, which apply in England and Wales.

The Rules of Intestacy can lead to issues as they make no provision for unmarried partners and step children so if they want to claim it can put them in a difficult position in having to make a claim to the Court for adequate financial provision.

Under the Rules of Intestacy, the estate will be divided as follows:

• If the person who died was married or in a civil partnership and there are no children, all of their estate will go to their spouse or civil partner.
• If the person who died was married or in a civil relationship and has children, the first £270,000 of their estate will go to their spouse or civil partner, along with any of their personal possessions. Anything over £270,000 will then be divided, with the spouse or civil partner receiving 50% and the children sharing the other 50% between them.
• If the person who died wasn't married or in a civil partnership, but does have children, the whole estate will go to them. If there are no children, then the estate could go to the parents, siblings or other relatives.
• It there is no spouse or children or parents then brothers and sisters or their issue can inherit

It is important to note that jointly held assets do not pass under the intestacy provisions

The only way to ensure that the people that you want to inherit receive your estate is to make a will.

For more information or to discuss any intestacy concerns, speak to us today.

How much will it cost ?

Many Banks and other Professionals charge a percentage of the value of the estate and hourly rates for estate administration. Our fixed fee service could save you thousands of pounds.

With us there is nothing to pay up front and our costs are always paid by the estate.

We will provide you with a fixed fee quote based upon the amount of work that we anticipate will be involved in dealing with the entire administration of the estate.

Our price ranges from under £1000 to over £10,000 plus vat and disbursements for a high value complex estate. There are many factors which affect the complexity of an Estate and the quotation you will be given.

Our free fixed fee quotation ensures you’ll know exactly how much it will cost to fully administer the estate before we start any work.

Example pricing

As every Estate is different we will provide you with a bespoke quotation, but to give you a  understanding of our Probate and estate administration pricing here are some examples of our fixed fee quotations for Estates of varying size and complexity. These examples are for illustrative purposes only :

Example Estate 1 – Simple Estate no property

• 2 bank accounts
• Valid Will
• IHT 205
• No liabilities
• 2 Beneficiaries
• Estate value £100,000

Our fixed fee Probate quotation for this Estate would be £1000 (+ VAT and disbursements)

Example Estate 2 – Property to sell or transfer

• 1 property
• 2 bank accounts
• Valid Will
• IHT 205
• No liabilities
• 2 Beneficiaries
• Estate value £150,000

Our fixed fee Probate quotation for this Estate would be £2,500 (+ VAT and disbursements)

Example Estate 3 – More complex estate with Property to sell or transfer

• 1 property
• 4 bank accounts / financial institution accounts
• Pensions
• Valid Will
• IHT 205
• Liabilites to be paid
• 4 Beneficiaries / Personal Representatives
• Estate value £240,000

Our fixed fee Probate quotation for this Estate would be £3,500 (+ VAT and disbursements)

Example Estate 4 – Complex Estate

• 1 property
• 8 bank / financial institution accounts
• No Will (Intestate)
• IHT 400 – potential IHT to be paid
• Liabilites to be paid
• 4 Beneficiaries
• Estate value £730,000

Our fixed fee Probate quotation for this Estate would be £6,500 (+ VAT and disbursements)

Example Estate 5 – High Value Estate

• 2 x properties – including overseas
• 12 Bank/ financial institutions accounts
• Valid Will
• IHT 400 – IHT to be paid
• Liabilites to be paid
• 4 or more Beneficiaries
• Estate value £2.5 million

Our fixed fee Probate quotation for this Estate would be £15,000 (+ VAT and disbursements)

Remember the price will not change unless the original information we are given is shown to be incorrect or circumstances change. For a bespoke fixed fee quote call us today or request a call back

Notes : VAT is currently charged at 20%