Broadly, inheritance tax is calculated at 40% of the net value of the estate.
Some reliefs and exemptions apply, most noticeably, all UK domiciled individuals are entitled to a nil rate band for inheritance tax in which inheritance tax is not payable. The nil rate band is set at £325,000 for the current 2020/21 tax year.
The process of applying and obtaining probate can take many months if the estate is complex. This is because all assets and liabilities must be established for inheritance tax purposes before probate can be obtained.
In simpler cases, probate can be applied for in a matter of week
The personal representative is the name for the person or persons who are responsible for applying for probate and administering the estate.
If there is a will, the personal representatives will be named in the will as executors.
If there isn’t a will, the personal representatives are installed by the court and known as the administrators. The Administration of Estates Act 1925 sets out who can apply to the court to be the personal representatives. The order of priority is:
1. Surviving spouse or civil partner
2. Sons or daughters
3. Parents
4. Brothers and sisters
5. More distant relatives
Probate is the legal process you need to go through to deal with someone’s estate when they die. I provide the executors or personal representatives with the necessary authority to collect assets and distribute funds to beneficiaries.
Once probate has been granted, you will receive a document which you can take to banks and other organisations meaning that various assets can be released to you.
There are a number of steps to complete after losing a loved one:
1. Register the death with 5 days and obtain a death certificate. This should be done as a register office which can be found online.
2. Arrange the funeral in accordance with the deceased’s wishes.
3. Notify people and organisations. The governments ‘tell us once’ service can be used to notify a number of different government departments in one go.
4. Prepare and submit inheritance tax return forms to HMRC along with paying any inheritance tax due.
5. Apply and obtain probate to enable you to take control of assets, settle liabilities and distribute the balance to beneficiaries.
It isn’t always necessary to obtain probate in the event of someone death. If most of the assets were jointly owned or the value of the estate is less than £10,000, you may not need to apply for probate.The value of assets which can be released to the personal representatives without obtaining probate can vary from between different organisations. Please contact us if you would like to know if probate will be necessary in your individual circumstances.
We have extensive experience we all matters relating to probate, wills and inheritance tax. We ensure that every case is dealt with efficiently and as stress free as possible by using the latest time saving technology and communicating with you on a regular basis.
Great customer service is very important to us which is supported by our friendly and compassionate approach where we ensure every need is not only met, but exceeded.
