We are a small independant firm offering services to clients of our sister firm Sarah Lloyd Chartered Accountants.

What is probate?

Probate is the first step in the legal process of administering the estate of a deceased person resolving all claims and distributing the deceased’s assets under a Will. Please note that the process for probate is known by different names in Northern Ireland and Scotland and is also dealt with separately in those countries. In Northern Ireland it is known as ‘grant of probate’ and in Scotland, it’s known as ‘confirmation’.

In the past, probate used to be something only a solicitor could do. In August 2014 however, accountants were also given the right to offer probate services. Allowing accountants to provide a probate service saves time as the lawyer will, in any case, have to get in contact with an accountant for financial information on the deceased at some point.

Why go to an accountant to do probate?

By going directly to an accountant first, rather than the time honoured tradition of going to a lawyer, you are cutting out the middle man which saves time for you. Dealing with probate is a very numerical matter that requires the accounts for the deceased person. To get the account information of the deceased that is needed for the solicitor, they will have to go to an accountant or the accountant of the deceased. It also saves money as hiring a lawyer can cost considerably more than it would if you went to an accountant. Unlike solicitors and banks that charge on a percentage of the assets, accountants usually just charge on a time basis.

Dealing with probate is a sensitive issue and it’s being done at a very sensitive time in your life. Our accountants have excellent client services and are very understanding. We will help you assemble all the information regarding the assets and liabilities of the deceased loved one. Additionally, we will assist you in the preparation of any personal tax returns that are required up to the date of death and the tax returns that are required to pay any Inheritance Tax that may be required before the grant of Probate can be issued.

We can organise everything so that any liabilities and expenses of the estate are paid before distributing the assets. We will also ensure that the assets are distributed to those that are legally entitled to them (this is normally dealt with by the deceased’s will).

Dealing with probate

Dealing with the administration of an individual’s estate can be a complex and time-consuming experience, which carries with it a number of legal obligations. We are licensed by the Institute of Chartered Accountants in England and Wales to carry out non-contentious probate.

What does probate involve?

Probate is the process of dealing with a deceased individual’s estate in order to ensure that their property, money and possessions are distributed in accordance with their wishes. When executing a will, there are a number of requirements that need to be met and forms to be filed before an individual’s estate can be finalised and distributed to the relevant beneficiaries. Listed below are some key steps to probate:

1. Check if the deceased has a valid will.

2. Your accountant or solicitor will need to obtain a professional valuation of the estate and then report this valuation to HMRC. This step involves locating all of the assets, investments and liabilities relating to the estate, including any gifts made by the deceased during the last seven years.

3. If the deceased’s assets are worth more than £5,000, they are then able to apply for probate online (if you have the original will, the original death certificate and have reported the valuation of the estate to HMRC) or by post. There is an application fee for this. Typically, our probate service fee is cheaper than a solicitor.

4. You must then pay any Inheritance tax that’s due. The standard rate for this tax is 40%, however, this is dependent on the value of the estate and whether it is classified as being under or over the threshold (£325,000). This is another tricky step as a range of reliefs, exceptions and exemptions can apply so check with our probate specialists first.

5. Following this, the executor now has the legal authority to deal with the estate, including sending a copy of the grant to relevant organisations like banks in order for them to release the assets. Any outstanding household bills, debts or mortgages must be settled too.

6. A record of the estate accounts needs to be kept, including how any property, money or possessions are to be split.

7. Finally, the assets can be distributed and passed on to any beneficiaries named in the will.

How should I be preparing my estate?

It’s never too early to begin planning for the future, and preparing your financial affairs by writing a tax-efficient will is good practice for anyone concerned about their family’s welfare in the event of their passing. Allocating your assets early on ensures that your wishes are carried out in the event that you do pass unexpectedly, and this enables you to exercise control over your property and personal belongings, as well as providing peace of mind for you and your loved ones.

How we can help with probate

Dealing with probate requires intricate knowledge of finance and is an overall heavily numerical matter. In order to acquire the relevant account information of the deceased, it’s best to go through a qualified, specialist accountant as they can swiftly and efficiently access the relevant accounting information that a solicitor isn’t typically privy to.

This post is intended to provide information of general interest about current business/ accounting issues. It should not replace professional advice tailored to your specific circumstances.