When a loved one passes away, dealing with their estate can be overwhelming. Probate – the legal process of administering a deceased person’s estate – is often misunderstood, and many people are unaware of what it entails.
Here we take a look at five key things you may not know about probate that could help you navigate the process more smoothly.
#1 Probate isn’t always required
Many people assume that probate is always necessary when there is a Will, but this isn’t the case. Whether or not probate is needed depends on the type of assets held and how they were owned. If assets are held jointly, they typically pass directly to the surviving owner without the need for probate. Additionally, some financial institutions may release funds without requiring probate, depending on the value of the estate.
#2 The Executor is legally responsible
If you have been named as an executor in a Will, you are legally responsible for managing the deceased’s estate. This includes valuing assets, paying debts, distributing inheritance, and ensuring all tax obligations are met. It’s a significant responsibility, and executors can be held personally liable if mistakes are made. Seeking legal guidance can help mitigate risks and ensure the estate is administered correctly.
#3 There are strict deadlines to follow
Probate doesn’t have a set deadline, but there are strict timeframes for certain obligations. For example, Inheritance Tax (IHT) must be paid within six months of the person’s death, and probate applications can take several months to be granted. Delays in applying for probate can cause financial complications, so it’s important to act promptly.
#4 Debts must be paid before inheritance can be distributed
Before any assets can be distributed to beneficiaries, all outstanding debts must be settled. This includes funeral expenses, outstanding loans, utility bills, and taxes. If the estate does not have sufficient funds to cover debts, certain creditors will take priority over others. Executors must ensure all liabilities are cleared before making any distributions, otherwise, they could be held responsible for unpaid debts.
#5 Disputes can arise – and they can be costly
Probate disputes, also known as contentious probate, can arise for various reasons. Common disputes include disagreements over the validity of a Will, claims under the Inheritance Act, and disputes over how an estate is administered. Resolving probate disputes can be time-consuming and expensive, so seeking legal advice early on can help prevent lengthy conflicts.
#6 The process can be even more difficult without a will
When someone dies intestate (without a will), the probate process becomes more complex, as the estate must be distributed according to the rules of intestacy. This can lead to delays and disputes among family members. Having a will in place can significantly help to streamline the probate process and ensure your wishes are carried out smoothly.
If you need assistance with probate or estate planning, O’Donnell Solicitors can provide expert guidance. Get in touch with our team, led by Jill Waddington, by calling 01457 761 320 or emailing enquire@odonnellsolicitors.co.uk
