Monthly Archives: September 2011

Probate

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Death is one of, if not the most difficult fact of life we will ever have to face. Yet sadly, there is much more to do when someone close to us dies that simply mourn our loss. There are a number of legal processes that have to be completed following a death, the most notable being probate.

Probate is the process involved in granting a person or people permission to distribute the assets within a will to the correct beneficiaries.

The majority of deaths with entail the need of an application for a ‘grant of probate’. However, disregarding a number of sneaky loopholes that can allow us to escape probate, there are two circumstances that will exempt a person’s estate from this lengthy process.

  • If the total value of the deceased’s assets sit below a particular threshold (usually £5,000).
  • If all the assets were jointly owned, and there is legal proof of this.

If you do find yourself in a position where you need to obtain probate, please remember that the process of application does not have to begin immediately following the death.

You can take the time to begin mourning and get yourself together before the legalities begin. However, do note that in complicated cases, the application for probate can take months or even years (in rare circumstances). Because of this it is a good idea to begin the process as soon as possible.

Once you do begin the application for probate, it is highly advisable to employ the help of a probate firm or solicitor. While you could complete the process alone, to do so would usually be ill advised. If you’re worried about the probate cost, bear in mind that there are a lot of complicated forms to complete and mistakes on said forms can be dear, and increase the time of application substantially.

So how much will probate cost?

The probate cost tends to vary considerably depending on the time and effort involved in each individual case.

Many firms and solicitors will base their probate fees upon an hourly rate and an additional percentage of the estates value. This means that the cost increases significantly in accordance with the value of the estate, and the time it takes to complete the application.

While this is a standard template of charges, the system is not without flaws. First of all, a case that turns out to be much more complicated than originally thought could see the probate fees spiralling out of control. What’s more, a probate lawyer can very easily draw out the work so that they are paid for more of their time than is necessary.

An alternative is to hire a firm who will offer a fixed fee for their services. While the initial quote may seem larger than that stated by a solicitor charging by the hour, the peace of mind of knowing from the offset what you’ll pay may well be worth the initial discrepancies.

 

Either way, it is still advisable to seek legal help in the event of a death. This assistance can ensure that not only is the probate application completed as quickly and efficiently as possible, but that all other pay-outs are correct.

 

When a person dies many financial issues need to be settled such as bills, mortgages and credit cards. Professional, legal help can ensure that all payments made are correct and therefore as many assets as possible are retained within the rightful ownership of the deceased’s loved ones and family.

 

This post was written by James Harper on behalf of the Wills and Probate Service. James writes on matters relating to law and the family.

Quick guide to making a will

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Making a Will

 

When you die you will need to pass on your possessions and money (otherwise known as your estate) to those family and friends who survive you. The best way to ensure your Estate is divided as you would like is to make a Will. This will enable your loved ones to share out you property and possessions as you wanted. Without a will your assets would be distributed according to the law, and this may not be as you would have liked. It is estimated that 60% of people die without ever making a Will.

 

Peace of Mind

 

If you have younger children then you can also state in your Will who will look after then in the event both parents die before they come of age, Having a Will prepared will allow you to have that peace of mind that your children will be looked after in the event of your death.

 

You can also make decisions about your funeral, whether you would like to be buried or cremated and other details such as music at your funeral. It would bring comfort to those people knowing they are carrying out your wishes.

 

What if I don’t make a Will?

 

If you die intestate (without making a will), this can cause problems for those you leave behind who have to deal with your estate. The law has rules to follow when distributing a person’s estate when they have not written a Will. This may not be how you wish for your possessions to be distributed.

 

Other issues may arise from different family members who may have a claim to your estate. Without a Will disputes may occur and Solicitors may need to be used to resolve any such disputes. This can cause families to come apart and be costly too.

 

Further, your assets may be unnecessarily taxed by the Government through paying too much Inheritance Tax. This may be avoided with professional advice with regards your financial assets.

 

Who can make a Will?

 

You are able to write your own Will and can now do this through the use of DIY will sites. However a will is a complex legal document and this is not advised, especially if you have an estate worth a lot of money. You really should consult a Solicitor or the Citizens Advice Bureau about how to make a valid will which will protect you and your assets. This is especially important if you need legal advice for complicated matters and you want to keep your tax liabilities to a minimum. Remember if the legal formalities for a Will are not followed a DIY Will may not be valid and cause further problems for those dealing with your estate.

 

How to make a valid Will?

 

The basic requirements for making a valid Will are:

  • You have to be a minimum age of 18
  • It must be written down, signed and witnessed by 2 people
  • The will has to begin with it stating that this Will revokes all previous Wills
  • Previous Wills have to be destroyed
  • You have to be of sound mind and be aware of the effects of your Will
  • The Will cannot be made due to pressure from any one else

 

With your financial affairs it may be worth consulting a professional such as a firm of solicitor who would be able to advise you of the most tax efficient ways to distribute your assets. Who can inform you of the Inheritance Tax laws and how to stop your assets from being over taxed unnecessarily.

 

What to include in a Will ?

Before seeking professional advice you should consider what will go in your Will, this may include:

  • Property, possessions, money and other assets
  • The beneficiaries, the people who you want to leave your assets to
  • Guardianship of any children under the age of 18
  • The person who will carry out your wishes, the executor of the Will

 

The executor of your Will can be someone you choose and name in your Will, otherwise a court can appoint an executor.

 

Who keeps the Will safe?

 

Once the Will has been written it should be kept in a safe place and the necessary people should be informed and told where it is. This may be the executor, a relative or friend. Where a Solicitor has written the Will for you, they would normally keep the original and send you a copy; however you may still ask for the original.

 

How often should I update my Will?

 

The government recommends you review your Will every 5 years, this does not necessarily mean you will have to change it. Also it is recommended that you review your Will after any significant changes in your life, financial or personal. Events to consider are:

  • Getting married, divorced, having a child or grandchildren
  • Moving house, selling  or buying new property or other investments
  • Adding new beneficiaries or removing ones included previously

 

Changes to a Will are by ‘Codicil’ whereby additions, amendments or supplements may be added or a completely new Will may be written.