Brief guide on Administering an Estate

The administration process

Once the Grant of Probate or Grant of Letters of Administration has been issued, the executors or administrators can proceed to register the assets in their names, claim cash balances and the proceeds of life policies. Sealed office copies of the Grant which can be obtained from the probate registry are usually used. If it is necessary to sell shareholdings it is advisable to obtain professional advice from a stockbroker.

It is usual to open executor’s or administrator’s bank account to hold the cash until it is distributed, and solicitors will usually arrange this on your behalf.

If there is a property to be sold it is usual to arrange to put the property on the market promptly as empty properties are an unwelcome responsibility for executors and administrators. Until the property is sold or transferred it is highly advisable to keep the house insurance in place.

Executors should also be aware that any person who has not been provided for in the will and who has a claim against the estate can make a claim during the ten-month period following the issue of the Grant of Probate. Such claims are rare but do occur and can be made by a spouse, any former spouse, a child or any other person who can show that they were financially dependent on the deceased. For this reason, a professional executor will not usually agree to make distributions from an estate until the ten-month period has elapsed.

Executors and administrators are also at risk from late claims being made against the estate by creditors and for this reason statutory advertisements are usually placed in newspapers notifying the death and inviting claims during a fixed period of two months. If a claim is made after this date and after the executor has distributed assets he or she is protected from the creditor.

Complying with the wishes in the will

The first distributions made from the estate after all of the liabilities have been paid are usually legacies. Specific legacies are frequently distributed before the ten-month period has elapsed particularly if there are storage or security problems and executors often agreed to make small pecuniary legacies during this period as well. The recipient of a specific legacy is usually responsible for the costs of delivery which are not payable by the estate. An executor might be prepared to ignore a small amount of postage but should not accept the cost of transporting a large item of furniture to Australia, for example, unless the rest of the beneficiaries agree, or the Will permits it.

Once the legacies have been fully discharged the executors can make an interim distribution on account of residue. If there is still tax to pay or liabilities not yet determined it is wise to make very prudent reserves for any remaining liabilities but executors should not retain assets unnecessarily if they have advertised for creditors.

If shares are sold for less than the probate value within one year of the death the executors can claim loss relief against the inheritance tax liability. There is a similar provision to sales of properties but if the property is sold for more than the probate value then HMRC may substitute the sale proceeds for the original value with a consequential increase in the inheritance tax liability or the estate may be subject to capital gains tax. If a property is sold all of the remaining instalments of inheritance tax have to be paid immediately.

Some assets do take an inordinate amount of time to administer – particularly foreign assets when it may be necessary to take out a second or even third grant of probate in a foreign jurisdiction. Some foreign assets will pass under local inheritance laws and are not under the terms of the English Will and these are usually problematic and expensive to deal with.

Can I deal with probate myself:

It is possible for you to deal with Probate yourself, but it can be stressful or overwhelming, and sometimes complicated. It also carries risk because as an Executor/Administrator you will be personally responsible for making sure the estate is dealt with correctly such as interpreting the rules of intestacy or the terms of the Will, reporting to HMRC, declaring the estate position to the Court, dealing with any unpaid debts or if the beneficiary does not receive the correct inheritance. To avoid any stress or risk to you, you can always instruct a firm of solicitors to deal with this on your behalf. My Probate Solicitors are here to help, and we will support you throughout the journey.

This note is not intended to give specific legal advice and is prepared by My Probate Legal Limited trading as My Probate Solicitors, a limited liability company registered in England and Wales under registration number 15337116. Registered office: Centurion House, 129 Deansgate, Manchester, M3 3WR. Authorised and regulated (under SRA number 8007072) by the Solicitors Regulation Authority.