If a loved one has recently passed away, and you have been named as an executor of their will, assuming you are willing and able to act in this capacity, the legal responsibility will rest with you to administer the deceased’s estate.
This may seem like a daunting prospect, especially if the deceased owned a number of different assets, in which case you would be well advised to secure the help of a legal professional. In more straightforward cases, however, this may be a matter that you are more than capable of undertaking yourself.
Below we examine how easy it is to administer an estate without a solicitor.
What does it mean to administer an estate?
In most cases, before you can even begin to deal with the deceased’s estate, you will need to apply for a grant of probate. Probate is the legal process by which you are officially granted the necessary permission to deal with someone’s financial affairs following their death. This is called ‘administering the estate’.
This includes settling any debts, taxes, funeral expenses and administration costs, and thereafter passing on any remaining property, money and assets, ie; the residue of the estate, to the beneficiaries named under the deceased’s will.
That said, for a small estate, a grant of probate – or where the deceased didn’t leave a will, letters of administration – may not be needed. This could be, for example, if the deceased didn’t own any property or assets outright, where any jointly owned assets such as the matrimonial home will pass automatically by survivorship to the deceased’s spouse or civil partner. It could also be where the amount of savings held in any account fall below £5,000.
However, a grant of probate or letters of administration will usually be required to sell or transfer any property held in the deceased’s sole name, or where property is owned jointly but as tenants in common rather than as joint tenants.
How easy is it to administer a deceased’s estate?
You can apply for a grant of probate if you are named as an executor in the deceased’s will. If the deceased died intestate, ie; without a will, you can apply for letters of administration as either their next of kin or close relative.
The actual process of applying for a grant of representation is not, in itself, especially difficult. However, there are various matters that must be undertaken in discharging your legal duty as an executor or administrator prior to even submitting your application to the Probate Registry.
This includes valuing the deceased’s estate for the purposes of inheritance tax liability, including offsetting any debts and liabilities – a process that can become especially complex depending on the beneficiaries and sums involved – and obtaining permission from HMRC to proceed with your application for a grant of representation where inheritance tax falls due.
Following the grant, you will also be tasked with liquidating any assets and distributing the estate accordingly, not to mention finalising any income tax position to the date of death and for the post death administration period.
How important is it to seek expert legal advice?
As an executor named in the deceased’s will, or the deceased’s next of kin, you do not have to administer an estate by yourself; it is perfectly permissible to ask a solicitor to do this on your behalf. You will also be entitled to recoup any legal expenses incurred out of the estate.
By instructing a solicitor, you will absolve yourself from any personal liability arising out of any mistakes that you may inadvertently make in administering the estate yourself. A trained legal professional is also far more likely to identify any tactical advantages of approaching the valuation and distribution of the estate in a certain way, for example, reducing any capital gains tax liabilities.
Ultimately, therefore, for peace of mind and the avoidance of error, in the majority of cases it is best to seek expert advice and assistance when faced with the important responsibility of administering the estate of a loved one.
For further advice on Probate please 01756 799000.
Legal disclaimer
The matters contained herein are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law and should not be treated as such.
Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.