What is Probate and How Long Does it Take?
In England and Wales, “Probate” refers to the legal and financial procedures required to manage and distribute the assets of a person who has died. This process involves validating the will and confirming who is authorised to administer the estate.
Before the next of kin or the executor named in the will can claim, sell or distribute the deceased’s assets, they may need to obtain a Grant of Probate.
In this article, we’ll answer the question: What is Probate and how long does it take? Providing everything you need to know about the process of applying for Probate.
How Long Does Probate Take, UK?
The Application Process
If you’re applying for a Grant of Probate with a will, the application process generally takes between one and eight weeks to complete. Several factors can influence this timeline, including:
- The size of the estate and its complexity.
- Whether there’s an inventory of assets included in the will.
- Your familiarity with the estate’s assets.
- Availability of the deceased’s birth certificate.
- The time it takes the probate provider to process the application.
If the deceased did not leave a will, or if their will cannot be located or validated, the process of applying for a Grant of Probate may take longer.
If you’re the spouse or civil partner of the individual and are familiar with their assets, your application could be prepared and sent to the probate registry within just a few weeks. However, if you need to complete an extensive amount of admin, it could take a few months to gather all the information you need for your application.
Getting Approved
After submitting your application, it usually takes three to six weeks to gain approval. Once approved, the grant will be posted to you, allowing you to begin managing the estate.
Overall, the entire process usually takes between nine and 12 months, though this timeframe can vary based on the complexity of the estate and application.
When is Probate Not Required in the UK?
You generally need to obtain Probate to manage an estate, especially if it includes property. However, Probate may not be necessary in the following circumstances:
- The estate consists solely of cash and personal belongings.
- The property in the estate is owned as beneficial joint tenants, where ownership automatically transfers to the surviving owner.
- You had a joint bank account.
- The estate’s total value is relatively small.
- The estate lacks sufficient funds to cover all debts, taxes and expenses.
- Certain life insurance policies or pension benefits are part of the estate.
What is the Difference Between Probate Value and Market Value?
To sell a loved one’s possessions after they pass, you’ll need to complete two separate valuations: a Probate and a market valuation. They both manage similar aspects, however, they are completely different surveys acquired for different reasons.
Probate Valuation
A Probate valuation is a survey completed by a chartered surveyor. It determines the total worth of a property and its accompanying assets and is used for Inheritance Tax purposes.
It’s based on the realistic value of the assets offered for sale on the open market at the date of death.
Market Valuation
An estate agent conducts a market valuation to determine the value of the property in comparison to similar properties that have recently been sold within the same region.
It considers account factors such as location, condition and recent sales to estimate a fair market value.
Why Do You Need a Probate Valuation?
When a property enters Probate, the individual responsible for the estate must arrange a Probate valuation and inform HMRC of the outcome. This valuation ensures that all tax obligations are met in accordance with the law.
Even if you intend to keep the inherited property, a Probate valuation is still required. If you sell the property in the future, you’ll be liable for Capital Gains Tax on any profit made. For example, if you inherit a house valued at £400,000 and sell it three years later for £450,000, you’ll need to pay Capital Gains Tax on the £50,000 profit.
How Much Money Can You Have in the Bank Before Probate?
Typically, banks allow up to £10,000 – £15,000 in an account before requiring Probate, however, this isn’t always the case.
The Probate threshold varies widely, ranging from £5,000 to £70,000, depending on the bank, building society or financial institution. While these limits generally apply, exemptions can occur at the bank’s discretion. For instance, even if an estate’s value is below the set threshold, a bank may still request a Grant of Probate if the estate is complex or if there are unusual family circumstances.
What Does a Probate Solicitor Do?
A solicitor can streamline the Probate application process, ensuring you don’t incur any penalties by submitting the wrong information.
Whether you’re simply in need of some initial guidance or assistance with a specific issue, our team is on hand to answer your questions.
Now that you understand what probate is and how long it takes, why not reach out for some expert support?
To find out more, please get in touch. Book a free consultation, or call us today on:
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Wimbledon: 020 8946 1212