INTRODUCTION
When someone dies it is important that the Estate is administered efficiently and sympathetically.If the deceased has made a Will, that will give instructions as to how the deceased would like the Estate to be distributed. If there is no Will then the Estate will be distributed in accordance with the Law (known as the Intestacy Rules).
It is necessary to gather together details and information about the deceased’s assets and liabilities. Generally speaking if the net value of the deceased’s Estate is of a relatively low value (E.G. Certain assets are under £5,000 and/or Joint Assets) then the Estate can be collected in and distributed without the need to get the Court's approval.
If the value of the Estate is of a higher value (E.G. Certain assets are worth over £5,000 and/or Property is involved) then it may be necessary to get the Probate Court approval in the form of obtaining a Grant of Probate (if there is a Will) or a Grant of Letters of Administration (if there is no Will).
The Grant of Probate or the Grant of Letters of Administration are the legal authority given by the Courts to enable the deceased’s Estate to be distributed.
SEEK LEGAL ADVICE
If an Estate is very straight forward and simple and of low value then an Estate can be administered by somebody on their own without the help of a Solicitor. However, many people do not want the worry and hassle and simply instruct a firm of Solicitors to supervise the administration of an Estate and do most of the work. Solicitors will charge for this and their fees will be paid out of the Estate.It is always best to seek legal advice in the following circumstances:
- Children under 18
- Property needs to be sold or transferred
- The Estate is of high value
- The Estate may be complicated
- Inheritance Tax may need to be paid
- The deceased owned a business
- Possible dispute or arguments
- Any unusual circumstances
LEGAL FEES
Solicitor's fees are usually charged on a time basis plus a percentage of the value of the estate (usually 1%). We do not charge a percentage of the value of the Estate. We only charge based on the actual time we spend on the necessary administration of the Estate. We believe this is the fairest and most reasonable way. Solicitor's fees are actually very reasonable compared with using other organisations such as Banks.We can administer Estates very effectively and sympathetically at very competitive rates.
PERSONAL REPRESENTATIVES
These are the people who deal with the administration and general winding up of a deceased persons Estate. If there is a Will they are called Executors. If there is no Will they are called Administrators. It is a position of responsibility not to be taken lightly. Basic duties include acting in accordance with the terms of the Will, taking care of the Estate assets, keeping full accounts, not to profit from their position, to act honestly, reasonably and fairly. They cannot be held personally liable for any debts of the Estate. However they can be held personally liable if they are negligent or act dishonestly.EXECUTORS
Are appointed by the deceased in their Will. Often in Wills two are appointed and act jointly particularly if there are minor children to take into account.ADMINSTRATORS
Administrators act and deal with the administration of an Estate if the deceased made no Will. They usually are the deceased’s next of kin. The usual order of priority as to who should act is as follows:- Spouse
- Children
- Parents
- Brothers and Sisters of the whole blood (or their issue)
- Brothers and Sisters of the half blood (or their issue)
- Grandparents
- Aunts and Uncles of the whole blood (or their issue)
- Aunts and Uncles of the half blood (or their issue)
- If no person is appointed then the Treasury or a creditor of the Estate will apply for a Grant of Letters of Administration.
COURT GRANTS
A Court Grant will give official authority to someone to legally administer a deceased’s Estate. The effect of a Grant is to vest the deceased’s assets and liabilities in the personal representatives as from the date of death.GRANT OF PROBATE
If the Deceased leaves a Will, which appoints Executors, then they must apply to the Probate Court for a Grant of Probate. This will give them official authority to administer the estate.GRANT OF LETTERS OF ADMINISTRATION
If the Deceased did not leave a Will (i.e. where there is an Intestacy), then someone (usually the deceased’s next of kin) will have to apply to the Probate Court for a Grant of Letters of Administration. This will give them official authority to administer the Estate.GRANT OF LETTERS OF ADMINISTRATION WITH THE WILL ANNEXED
If the Deceased left a Will, but did not appoint Executors or fails to dispose of the residue of the Estate then someone (usually the deceased’s next of kin or main beneficiary) will need to apply to the Probate Court for a Grant of Letters of Administration with the Will annexed.NO NEED FOR A GRANT
A Grant is not needed in the following situations:- Small sums in National Savings
- Assets jointly held with someone else
- Cash jewellery and personal belongings (if agreed)
SMALL ESTATES
In certain circumstances the Estate can be distributed without the need to apply for a Grant of Probate or a Grant of Letters of Administration from the Probate Courts.Small sums of money of up to £5,000 from various institutions such as Banks and Building Societies and Insurance Companies can be paid and distributed provided the amount in each institution is less than £5,000.
However the institutions can if they want, insist on a Grant being obtained from the Probate Court.
Cash and personal effects can also be distributed without the need for a Grant so long as the beneficiaries agree.
In addition sometimes money is Nominated or Written in Trust to a named beneficiary in which case the beneficiary can usually claim the money direct from the institution without the need to produce a Grant from the Probate Courts.
INSOLVENT ESTATES
If there are insufficient assets to pay the debts and liabilities the Estate is treated as being insolvent. The Estate needs to be administered in accordance with the Administration of Insolvent Estates of Deceased Persons Order 1999.There is a set procedure for dealing with these and legal advice is needed.
