Your Clear-Cut Guide to Managing Probate Property in the UK

Dealing with probate property can be daunting as it usually arises at a sad point in a life. Property probate in the UK involves a legal process that is required for the assurance of due disposal or proper transfer of any property that the deceased owned. Here is a clear guide to help you manage each step of the property probate process effectively:.

Step 1: Determine Whether the Property Must Be Probated

Not all property is subject to probate. Here's how to determine:

• Jointly Owned Property: If the property is jointly owned, it may automatically pass to a surviving spouse or partner.
• Solely Owned Property: If sole title to the property was held in the name of the decedent, then in most instances, it needs to be probated before being legally transferred or sold.

If you are in any doubt, an initial consultation with a solicitor or probate expert will clarify your particular situation.

Step 2: Establish Who the Executor or Administrator Is

Who is in charge of the probate, depending on whether there is a will:

• Executor: If the deceased left a will, then that person most likely appointed an executor to handle the estate. The executor will have to apply for a Grant of Probate to become legally empowered to deal with the property.
• Administrator: Where a Will does not exist, then the estate is described as intestate, although an application for Letters of Administration could be made by a near relative, typically a spouse, child, or sibling, in order to become an administrator.

An executor or administrator can, with legal authority, proceed with property matters upon being granted.

Step 3: Value the Property for Inheritance Tax Purposes For probate properties, the valuation has to be as precise, since it will determine any liability for IHT. The values of all properties must be determined as of the date of death.

• Valuation from Estate Agents: Most people get local estate agents to provide valuations based on the current market value of their properties.
• Professional Valuation: Where the estate in question is sizeable, or the circumstances surrounding the estate are complicated, it is always better to have a professional valuation by a chartered surveyor or one who holds the RICS qualification.

The value of the property, along with the other estate assets, determines the overall value of the estate and therefore will determine whether any Inheritance Tax is payable.

Step 4: Inheritance Tax (Where Payable) UK Inheritance Tax is payable on an estate above £325,000, or £500,000 if it is left to children or grandchildren. What this means for property probate is:

• Initial IHT payment: The Inheritance Tax payable on the property has to be paid six months from the date of death. Banks will most commonly allow you to pay directly from the accounts of the deceased.
• Instalment Plans: Where the property forms the major part of the estate, arrangements can be made by the executors to pay in installments to HMRC. Another avenue that perhaps could be considered is a Probate Loan to finance the tax payable over this waiting period until the house is sold.

When paid, one is free to apply for a grant of probate-the document giving you the legal ownership of the property.

Step 5: Apply for Grant of Probate or Letters of Administration

Once the Inheritance Tax is done, it is time to apply for either a Grant of Probate or Letters of Administration. This legal document grants you the right to make the actual transfer or sale of the probate property.

• You can apply online through the probate portal from the UK government or through a paper application. You will need to provide documents such as the death certificate, original will if the deceased provided one, and financial statements in regard to the estate.
• Time: It generally takes a number of weeks for an application to go through for Grant of Probate. This differs regarding many factors. Once this is granted, you then have legal rights over the property that constitutes this estate.

Step 6: Determine What Happens to the Property

Once probate is granted, you are legally allowed to deal with the property. You will now need to determine whether to sell the property or transfer the ownership to beneficiaries.

• Sell the Property: It would be a good idea if you get in several valuations from estate agents, in case the property is going to be sold, to work out the market value.
• Transfer Ownership to Beneficiaries: The property could be transferred directly to them if the beneficiaries wish to retain it.

If selling, remember that probate properties often attract buyers looking for potential investment opportunities, so the condition and location of the property may influence its marketability.

Step 7: Distribute the Proceeds or Transfer Ownership

Once the property is sold or transferred, you will have to wrap up the estate by:

• Paying Debts: Utilize proceeds from the sale, if any, to settle all outstanding debts or expenses related to the estate.
• Distribution to Beneficiaries: Whatever is left after clearing the debts, if any, is distributed according to the will or, in the absence of the will, by intestacy. This step is the last procedure to be fulfilled in the probate process and enables the complete winding up of the estate.

Probate Property Expert Help

Probate property is complex to manage, and nobody needs to face it alone. Here at Argant Estates, we specialise in selling probate properties, everything from valuation right through to sale. Call us today to book your free valuation and let us confidently guide you through the process.