Guest Blog by Tracy Ashby, Partner in the Wills, Trusts and Probate team of the Knowle office of FBC Manby Bowdler LLP
Dealing with the loss of a loved one is hard enough. But having to deal with often complex legal issues surrounding their estate at the same time can feel overwhelming. Here, Tracy Ashby, a partner in the Wills, Trusts and Probate team at leading law firm FBC Manby Bowdler explains some of the steps involved and why it’s so important to prepare in advance if possible.
For most people, the thought of handling a loved one’s will can be pretty overwhelming. Being asked to deal with an often-confusing set of legal and financial responsibilities while still grieving is daunting to say the least. But a little understanding of the timelines involved – and the process which needs to be followed – can go a long way to easing some of the pressure and managing expectations. And taking steps to have as much prepared as possible for when the time comes, can help things run as smoothly as possible and further reduce the emotional toll.
How long will the process take?
A typical estate might take between six and 12 months to administer if everything is relatively straightforward. But the sale of any property will almost inevitably slow things down and typically adds between four and six months to the process.
And if the estate is complex – including, for example, foreign assets, business interests, disputes or complicated investments – it could take two years or even longer to finalise.
Managing the Estate: The First Steps
The first and often most crucial step is to find the will. This will allow you to identify the executor or executors – the people with legal and
financial responsibility for administering the estate. If there is no valid will then the rules of intestacy apply and will dictate how the estate
must be distributed. This can significantly impact the complexity and length of the process.
Next, you need to value the estate. This means creating a detailed inventory of all assets and liabilities. You’ll need to get professional valuations for property, investments, and any valuable items. This valuation is necessary to determine Inheritance Tax (IHT) considerations.
Tax and Legal Formalities
If Inheritance Tax is due, it must generally be paid within six months of the end of the month in which the death occurred to avoid interest charges. The Inheritance Tax return itself must be submitted within twelve months. Often the next major step is to apply for probate. This is typically required if the estate includes property, significant financial assets or complex items. Applications are made online. For straightforward applications, expect the probate process to take around four to eight weeks to be granted once submitted.
Administering and Finalising
Once probate is granted, the executors can proceed to administer the estate. This involves paying off any outstanding debts and liabilities. Finally, the assets are distributed to the beneficiaries exactly according to the will or the rules of intestacy. Executors must also update property records, financial accounts and other registrations.
Why it pays to prepare in advance
This process is a significant undertaking during a time of grief, even for the most resilient of us and even in the most straightforward of cases. The kindest thing you can do for your loved ones is to prepare as much as possible in advance.
Ensure a clear, up-to-date will is in place and keep clear records of assets and liabilities. Make sure your loved ones know where everything is kept – and how they can access it when the time comes.
And don’t hesitate to contact a reputable solicitor to seek legal help. Professional advice can give you real peace of mind and ensure everything is done just as you want.