Probate
Understanding Probate and the Role of an Executor
This guide explains what probate is, when it may be needed, and the main tasks an executor is expected to carry out. It also highlights the personal responsibility that comes with the role and why many executors choose professional support to help reduce stress, save time, and minimise risk.
A grant of probate is a legal document issued by the probate registry. It gives executors the authority to deal with the deceased’s estate, including accessing funds, handling financial matters, and selling property where necessary.
Probate is often required when the deceased owned property in their sole name, held stocks and shares, had life insurance not written in trust, or had funds above a bank or building society’s individual limit.
Not every estate will need probate. Smaller estates may not require it, particularly if there is no property involved, no significant investments, and assets are jointly owned so they pass automatically to the surviving owner. However, where probate is needed, it is an essential step before the estate can be properly administered.
As an executor, you have personal and financial responsibility for ensuring the estate is handled correctly. This includes identifying all assets and liabilities, understanding the will, paying the correct amount of tax, settling debts, and distributing the estate to the right beneficiaries.
Because of this level of responsibility, many executors choose to seek professional guidance to help ensure everything is carried out accurately and in the correct order.
The Main Tasks an Executor Needs to Carry Out
The first steps usually involve obtaining several official copies of the death certificate and locating the original will and any codicils. It is important to confirm that the will being used is the most recent one. If there is any uncertainty, a search through the national wills register may be advisable, especially if there is a risk of dispute.
An executor may also need to arrange the funeral, ideally in line with the wishes of the deceased. It is worth checking whether a prepaid funeral plan or relevant life insurance policy exists, as banks can often release money directly to funeral directors without a grant of probate.
From there, the estate must be valued carefully. This means identifying all assets, such as property, savings, investments, life insurance, and personal possessions, as well as any outstanding debts, including bills and loans.
Professional valuations may be needed for property, shares, and valuable possessions. If the estate includes a business, this can add another layer of complexity and often requires specialist advice, particularly when assessing reliefs such as Business Property Relief.
Executors are also responsible for protecting estate assets during the administration period. Any property and possessions should be kept secure, properly maintained, and adequately insured. If a property is left empty, the insurer must be informed, as specialist unoccupied property cover may be required.
Tax, Distribution, and Finalising the Estate
Inheritance Tax must be dealt with promptly and accurately. The estate needs to be valued correctly for the relevant tax return, and where tax is due, it must usually be paid by the end of the sixth month after the date of death to avoid penalties and interest. In most cases, probate will not be issued until the necessary Inheritance Tax forms have been completed and any tax due has been paid. Executors must also consider whether the deceased made gifts within seven years of death or transferred assets into a trust, as this can affect the available tax allowances.
Once the tax position has been addressed, the executor can apply for probate, either online or by paper application, depending on the circumstances. After the grant has been issued, the executor can begin collecting in assets, recovering money owed to the deceased, and settling outstanding debts. It is often recommended to place trustee notices in the London Gazette and local newspapers so that potential creditors have the opportunity to come forward. This can provide valuable legal protection for the executor.
The final stage is distributing the estate to the beneficiaries and preparing the estate accounts. It is generally advisable not to distribute the estate too soon, as there may still be potential claims against it. Estate accounts should clearly record income, expenses, and distributions, and executors may also need to deal with income tax or capital gains tax matters before the administration is complete. Once everything has been properly accounted for and distributed, the estate can be finalised.