Probate – Probate
Probate is fundamentally the legal process that bestows upon one individual the legal right to manage and distribute the estate of another individual who is deceased. In this context an ‘estate’ is simply the net worth of everything the individual owns (money, investments, property, possessions) at the time of their death.
It is perhaps only when a person begins to get a little older and a little wiser that they begin to think about what will happen to the estate they accumulated over the course of their life. If this person wants their estate to be distributed in a certain way they should compose a Will. The process of probate is first of all dependent on whether the deceased has left behind a Will because a Will is a direct statement on how the estate is to be distributed and how much it is worth.
The Will will nominate an individual as the executor of the Will, and it will be this person’s duty to apply for the right of probate and to administer the distribution of the estate. Firstly the executor must have the estate evaluated and determine whether there are any debts or taxes owed by the deceased. If there are any debts these must be settled, and if the estate has a net worth of over £325,000 there will be inheritance tax owed (at around 40%).
Once the valuation has been carried out and any outstanding liabilities settled, the executor can begin to apply for the legal right of probate. This right of probate is needed for any estates that contain more than one type of asset, such as shares or property. The legal right of probate will not need to be sought if the estate has a cumulative value of under £5,000 or was completely jointly owned with someone who is still alive.
If the deceased has left behind a Will that is considered to be valid in the eyes of the law, the executor will need to apply to the Probate Registry for a Grant of Probate. The grant is a legal document that proves that the executor has the right to damage and distribute the estate of the deceased. It can be used as proof to banks, credit agencies and other organisations of that nature.
If the deceased has not left behind a valid will the process of probate will be slightly different. Firstly, there will be no executor, so a family member will need to apply to the Probate Registry for the Grant of Letters of Administration. This grant will function in the same way as the Grant of Probate. Because there is no Will the estate will legally be split between spouses or civil partners and surviving family and relatives.
The process of probate is an important one. It helps to establish a way for an individual to legally give away another person’s estate, by allowing the owner to specify how they would like it to be done.