What is probate property?

Probate property is everything a person owned at the time of death, except for a few items. In the UK, examples of probate property include the home, cash in a bank account, and shares in a company. Things that people often think are part of probate property, but are not, include most joint bank accounts, houses owned jointly with a spouse or civil partner, life insurance policies, and pension death benefits.

Some assets must go through probate before they can be transferred to others. Generally, this applies to things owned solely by the deceased person and that exceed specific values for probate in a particular category. Legal ownership of assets is essential in these situations because only the legal owner can dispose of the asset, even though the deceased person has died and the money might actually belong to someone else. An executor of the estate (the deceased person’s legal representative appointed in their will) is needed to apply for a grant of probate to provide proof of their legal authority for that transfer. The executor is acting not on their own behalf but on behalf of the estate—the legal entity created when a person dies.

Why probate matters

Probate matters because the deceased’s estate generally cannot be passed on until the probate process is completed. This means that heirs cannot inherit money or other assets in the deceased’s estate while the estate is in probate. It is worth noting that the estate is not required to remain in probate for any particular length of time; it is simply a matter of obtaining permission to administer the deceased’s affairs and transfer the assets to the heirs.

Although probate typically takes between six months and two years, delays are common. There may also be some costs for both the deceased’s estate and the heirs. However, pensions, life insurance proceeds, and some other forms of property often do not require probate; these funds pass directly to their intended beneficiaries. Without probate, these beneficiaries receive their inheritance immediately on the death of the deceased, or on the claim of the funeral benefit.

The probate process provides a safeguard for the deceased’s beneficiaries. Once the appointment is confirmed, the executor is free to deal with the estate without risk of liability to the beneficiaries. Moreover, once inheritance tax has been paid (if any is due) and a notice of clearance has been received from HM Revenue and Customs, the beneficiaries will not be required to pay any further tax on receiving the inheritance, including any income or capital gains tax that may arise.

Who can handle probate?

Anyone with the proper knowledge or expertise can undertake probate. However, the types of people undertaking probate typically include the executor of the will (if there is one), a solicitor, or a probate practitioner. Executors are responsible for handling probate if they are able and willing to do so. Still, solicitors and probate practitioners are also experienced in applying for the Grant of Representation required to complete the probate process.

Anyone can handle probate without professional permission or specific qualifications, though potential conflicts of interest may arise. Because the responsibility of completing probate can be complicated and time-consuming, many executors (especially if inexperienced, time-poor, or emotionally affected by the death) choose to seek help gathering information and completing the forms needed. The level of assistance required can vary: sometimes only specific steps require professional support, while other situations (for example, a disputed will) warrant complete guidance. Permissions and filing requirements also vary according to the specific circumstances.

Steps to start probate

Probate begins with a simple process. Several forms must be completed and submitted to the court as part of a formal application. The applicant must pay a fee. To kick things off, an outsider should gather key documents and determine the deceased’s full name, date of birth, and last address. The applicant then completes the relevant forms and files them with the court that serves the deceased’s former address. The bank should receive a copy of the death certificate and any other institution that manages the deceased’s assets.

The actual filing requires completion of either the PA1 or PA1A form (the latter for smaller estates) and the accompanying IHT forms where necessary. The applicant must disclose the deceased’s assets to HMRC for the Inheritance Tax return and any other institutions that hold the deceased’s assets.

How to value the estate

To value the estate for probate, consider all assets owned solely or jointly by the deceased at the time of death. Commonly looked-at property types include houses, garages, second homes, land, and even grazing rights. Valuing savings is often relatively easy—you contact the institutions and ask for a balance, though you may need to send a copy of the death certificate to each bank. Remember to include any heirlooms, jewellery collections, and works of art, as well as anything else that might have some financial worth beyond mere sentimental value.

An essential part of the probate valuation process is an accurate list of all debts owed by the deceased at the time of death. This should include personal loans, credit cards, loans on life policies, the remaining balance on any mortgage, unsettled income tax claims, bills for electricity, gas, water, and other utility services, as well as funeral expenses already incurred. Professional advisers may also be required to aid the valuation of certain assets, such as businesses, farms, or significant property portfolios.

Dealing with debts and taxes

Most people will have debts and loans when they die, and the estate is responsible for paying them. The most common debts are funeral costs, credit cards, mortgages, loans, and unpaid bills. The family may wish to pay the funeral costs quickly, but whoever is paying them should be careful. Out of courtesy, they can seek agreement from the other close family members at the time. The estate may then reimburse them. However, if they pay funeral costs out of their own pocket without an agreement, they may lose the right to recover those costs or have to share the reimbursement with others. The estate isn’t liable for all debts made before death; for example, loans taken out fraudulently or for gambling are not a charge on the estate.

Debts are paid out of the estate before any distribution to beneficiaries. Once the debts have been paid, the administrator will need to deal with the inheritance tax. Inheritance tax is payable only on estates valued above a certain threshold. The amount changes from year to year, and HMRC publishes updated information on the threshold and on claiming a tax-free amount when the estate includes property inherited by children, grandchildren, or qualifying foster children. If the value exceeds the threshold, HMRC inheritance tax forms must be completed and submitted. HMRC expects a payment of inheritance tax plus interest to be made within six months of the death. If the inheritance tax is paid within six months, interest will not be charged on the tax until after the payment date.

Collecting assets

The next step is to collect the estate’s assets. This can mean closing bank accounts, selling property, distributing personal items, and so on.

Start with cash and savings. Bank accounts can usually be closed, and funds transferred to the estate account. Need help? Contact the bank’s bereavement team.

Houses, flats, and land can be sold. First, could you get a valuation? When a buyer is found, the property must be transferred to the new owner. This usually requires a solicitor or conveyancer. Update the Land Registry if needed.

Next, consider other possessions. Such items can be sold, given away, or kept by family and friends. If large or high-value items are involved, consider getting a professional valuation.

Check for savings and investment accounts with financial institutions. Tell them about the death, and follow their instructions to close the accounts.

As assets are collected, keep track of what has been collected and any sales. Be careful with valuables. It’s easy to overlook something, and other family members may have claims as well.

Paying out to beneficiaries

After paying outstanding estate debts, the next step is distributing the remaining cash and assets to the beneficiaries as set out in the will.

The funds being paid out to beneficiaries may be in cash, shares, or other ways. Bank accounts can be closed and the proceeds paid to the beneficiaries. If a share portfolio is held, the shares can be sold, and any gains rolled up into the final cash distributions to the beneficiaries.

If large sums are being paid out, it is wise to ask the beneficiaries to sign a beneficiary's statement confirming receipt of the distribution. Receipts should be obtained from all beneficiaries for all cash payments made directly to them. If there is an inheritance tax liability, it is sensible to retain the tax money within the estate, and this can be recorded in the beneficiaries' statement. If any trusts are being created for minor beneficiaries, the terms of those trusts should be documented.

If there are living children receiving cash from the estate who are under 18 years of age, the money must be distributed in accordance with the Will or intestacy rules. If a large sum is being retained in trust until a child reaches age 18 or until a divorce or separation, the appropriate funds can be maintained in a separate Trust account. The Trust can then pay the child during their education years.

Common problems and how to solve them

Probate is often a simple process, but specific problems can arise. Delays are the most common issue, usually caused by waiting for third parties to reply. For example, banks take time to release accounts, the Valuation Office Agency need time to assess property values, HMRC may take time to calculate tax, and museums may take time to answer valuable non-cash goods. If a copy of a document is needed, the original is lost, or an institution stops replying, copying or contacting another institution can usually help. Minor problems can also be easily resolved by contacting a database or an institution.

Conflicts among beneficiaries can be more complex to resolve, especially when a majority disagrees with a minority. If a will is disputed, a probate solicitor should be consulted, but a simple statement of all estate debts and credit balances can make distributions easier. That statement can also indicate whether it is safe to distribute, which is usually the case with residuary estates. If funds are distributed and a valid debt arises later, the creditor will usually be paid from the estate’s funds.

When probate is not needed

You do not need to do probate if:

1. The total value of the deceased person’s estate is less than £5,000 (this does not include money in joint accounts, which can be paid directly to the surviving joint account holder), and the estate does not contain land, buildings, or shares. 2. Bank or building society accounts are held in joint names (which pass automatically to the surviving account holder), or do not hold more than £5,000, and the bank or building society is willing to pay without a grant. 3. All assets are held in the name of the deceased and go automatically to someone else on death (for example, an insurance policy written in trust or property held as joint tenants).

Assessing whether probate is needed is not always easy. You may want to seek advice, particularly from a solicitor or probate practitioner, if the value of the estate is close to the threshold, or if the estate has any of the following complications:

- if there is a will that leaves assets to more than one beneficiary - if any of the assets may be subject to inheritance tax, even if the estate does not need to pay any - if the estate includes foreign assets - if there is any disagreement among beneficiaries over their shares

Useful documents to gather

Keep copies of the following declarations and documents:

* The deceased’s will or any declaration that cancels it. * The deceased’s death certificate. * The death register entry with name, address, and date of death. * A register of income, assets, and liabilities (see Valuing the estate on page 21), with information for financial institutions holding bank accounts or money on deposit. * Bank statements for accounts in the deceased’s name, or held jointly, covering at least six months before the date of death. * Property deeds or leases with details for land and property registered with the Land Registry or the Land Charges Department. * Any written evidence of debts, including credit cards, loans, or unpaid bills. * Other financial institutions’ registers of accounts held by the deceased. * Any available identity documents for the deceased or executors, such as passports or driving licences. * Receipts for valuables bought by the deceased and any non-probate non-legal assets. * Correspondence with financial institutions or other bodies that involve the estate.

How lengthy probate may take

Probate is sometimes completed within a few months. More typically, the whole process takes 9–15 months. Some estates are large and complex, however, and family disagreements, missing documents, or delays by banks and HMRC hold others up. Usually, the total time needed falls into these stages. Firstly, applying for probate takes typically about 2–3 months. After obtaining the grant, the value of the estate is established, usually by the executor or administrator, and this can take another few months. Much of this time is spent preparing the estate accounts, collecting in assets, and ensuring that any debts, taxes, and funeral costs are paid. Distribution of assets can then proceed, assuming the estate has sufficient cash to cover any legacies and that the executor does not have to wait for additional sales or valuations.

If probate is needed, it is sensible to keep detailed records of all relevant transactions and to draw up regular estate accounts. These should show how much money has come in, what has been paid out, where it has gone, and what is left to distribute. If there are delays or possible disputes with HMRC, this set of accounts will help simplify matters. It takes time to sort out tax payments and refunds with HMRC, so avoiding unnecessary delay is advisable – particularly with inheritance tax, as interest is charged on any overdue amount. Banks that have expressed a wish for compensation usually. Do not take long once the estateear, but agreed-upon amounts can take longer.

What to do if there is a will

The first step is to search for the will, read it, and follow its instructions. The will should name the executors, who are the persons responsible for administering the estate. Executors usually have the authority to begin administering the estate. If the estate is large, the will may require registration with the Principal Registry of the Family Division. The executors may need to apply for probate, using a copy of the will.

Could you search for the will and make sure you have the most up-to-date version? The will should be clear about who the executors are, though their identities can be confirmed in other ways if necessary. The first step is to contact the executors to check they are willing and able to act. If no one can do so, someone else may need to apply to the court for a Grant of Representation, which may take longer and be more complex.

You don't need to open the negotiations or disclose the will to anyone else yet. If the estate is subject to Inheritance Tax, the executors will need to file a copy of the will with the Inheritance Tax form IHT205 or IHT400. If the property is to be transferred to a surviving spouse (or civil partner) or to a charity of the deceased, consideration should also be given to registering the will. The will may contain further instructions that need to be followed. For instance, there may be specific legacies or trusts that need to be set up for children or grandchildren. If the estate is large, the will may also require the executors to obtain probate, so a full-scale process will need to be followed.

What to do if there is no will

If the deceased left no will, the estate must be administered rather than probated. Intestacy rules decide who inherits, starting with a spouse or civil partner, then children, grandchildren, parents, siblings, and their descendants, then half-blood relatives, and finally more distant relatives in the order established by statute. The spouse or civil partner gets all in a small estate (valued under £275,000, including any exempt gifts). Otherwise, they and any surviving children share everything under the Statutory Intestacy Rules (SIR) Act 1925; if no children or grandchildren survive, the spouse or partner is only entitled to the net personal chattels and a specified cash sum with half the residue. If no surviving beneficiaries fall within the statutory classification (for instance, step-children), the estate will pass to more distant relatives in line with the rules. The risk of claims is not limited to family members; if an intestate estate is administered out of order or there are no statutory beneficiaries, creditors may also bring a claim, as the debts of the deceased must always be paid first.

The Statutory Rules establish a clear order of repayment for debts, and any transactions in contravention of that order may trigger claims against the estate's executors. However, beneficiaries may still dispute the validity of any debts, which should be supported with evidence. The order of repayment is as follows (if other sources do not supply): funeral expenses; any payments made for care and accommodation during the deceased's last illness; income tax and any National Insurance contributions due but unpaid; inheritance tax; and all other debts. The deceased's net estate must always be applied in that order. Administration is provided on the same basis as for an estate with a will. However, a lawyer who is not a beneficiary must usually be appointed, and various additional documents must be submitted with the application, including an affidavit or undertaking from an appropriate person or institution.

Conclusion

Done.

Probate property includes everything a person owned at the time of their death. It is property that falls within a deceased person’s estate and requires probate to ensure that ownership is passed on correctly. Executors appointed in a will or by law manage the estate, pay any debts, deduct any taxes due, and then transfer the remaining estate to the beneficiaries in accordance with the deceased’s wishes or following the rules of intestacy.

Many misconceptions surround probate. Some people think no probate is required if a will was made or if someone else was named as the new owner of a property during the deceased’s life. Others believe that probate relates only to death duties or that it takes place in a court. In the UK, however, this isn’t the case. People often also think that probate can be avoided entirely if the estate is left to a spouse. In fact, all estates above a certain threshold must go through probate, and the tax rules are more complex than this.