Until we have obtained the Grant to deal with the assets of the estate, all assets are frozen, with the exception of jointly owned assets. Joint accounts can be transferred to the surviving co-owner on production of a certified copy of the death certificate. Sometimes, for inheritance tax purposes, joint assets are not immediately transferred by production of a death certificate and we can advise you on the steps to be taken.
Once we have obtained the necessary information, we prepare the "probate papers” for the executors to sign and we then apply to the Court for the Grant of Probate (in the case of a Will) or the Grant of Letters of Administration (if there is no Will). "Probate” is used in this guide to cover all cases, unless the distinction is important.
As from November 2004, the "probate papers” always includes one of two types of HM Revenue and Customs form. The HM Revenue and Customs form, either an IHT 400 or an IHT 205, has to be completed and must contain accurate figures for all assets and any debts in the name of the deceased at the date of death.
Probate is typically obtained within two to three months of the date of death, or earlier for estates of lesser value. The Grant is a formal document to confirm the executor's right to deal with the assets and liabilities in the estate. For inheritance tax cases Probate may not be obtained for some six to seven months after the date of death. Inheritance tax is payable before the Grant can be obtained. HM Revenue and Customs do allow the executors this time to collate funds to pay the inheritance tax due, if any. Interest is payable on unpaid inheritance tax six months following the end of the month in which the death occurred.
When preparing the probate papers, we consider how to finance any inheritance tax liability payable, either when applying for probate and later as required, and any Probate Court fees payable when applying for the Grant.
Before applying for Probate, we also plan ahead for paying any debts and legacies, and, if appropriate, making an interim distribution to the residuary beneficiaries, and make the necessary proposals to the executors to carry out those tasks, so that these steps can be taken once Probate is received.
The law allows executors to advertise for claimants against the estate and, provided certain conditions are met, then to distribute the estate. Trustee Act notices can be placed in newspapers to advertise for such claimants. These notices protect the executors in their capacity as executor. Therefore if anyone has a valid claim against the estate, they can still pursue the beneficiaries directly. Sometimes the executors may feel it is not appropriate to advertise for claimants and we can discuss this with you.
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