Navigating the aftermath of a loved one’s death can be emotionally draining and legally complex. One key element often involved in managing a deceased person’s estate is obtaining probate. If you’ve recently been granted probate in England and Wales, you might be wondering what the next steps entail. Here, we’ll guide you through what happens after probate is granted to ensure you handle the estate efficiently and respectfully.
Understanding Probate
First, let’s recap what probate is. Probate is the legal process that confirms an executor’s or administrator’s authority to manage and distribute the deceased’s estate according to their will or the rules of intestacy if there is no will. Once the Probate Registry grants the probate, the executor or administrator has the legal right to deal with the deceased’s assets.
Step 1: Collecting Assets
Once probate is granted, the primary task is to gather all the deceased’s assets. This might include bank accounts, property, investments and personal belongings. Contact financial institutions, utility companies and other entities to inform them of the death and request the release of funds or transfer of assets.
Key Considerations at this stage:
– Obtain copies of the grant of probate as you will need these to prove your authority.
– Make an inventory of all assets to ensure nothing is overlooked.
Step 2: Pay Debts and Liabilities
Before distributing the assets to the beneficiaries, any outstanding debts and liabilities must be settled. These might include utility bills, funeral expenses, taxes and loans. Ensure that all creditors are paid off from the estate’s funds.
Key Considerations at this stage:
– Keep thorough records of all payments.
– Ensure there are funds reserved to cover any potential liabilities before making distributions.
Step 3: Finalising Tax Matters
Ensure all tax liabilities are settled, including income tax or inheritance tax. The estate needs to be closed off with HM Revenue and Customs (HMRC) to confirm no further taxes are owed.
Key Considerations at this stage:
– Consult with a tax advisor if necessary to ensure all obligations are met.
– Keep copies of all tax submissions and correspondence with HMRC.
Step 4: Estate Accounts
Maintaining accurate accounts of all transactions related to the estate is crucial. Prepare a statement of accounts showing all assets, liabilities, expenses and distributions.
Key Considerations:
– Estate accounts should be transparent and detailed to avoid any disputes.
– Share the final accounts with beneficiaries and keep a copy for your records.
Step 5: Distributing the Estate
Once all debts and expenses are settled, the remaining assets can be distributed to the beneficiaries as per the will (or intestacy rules if there is no will). This involves transferring funds, property or other assets to the rightful inheritors.
Key Considerations at this stage:
– Provide each beneficiary with a copy of the estate accounts detailing the distribution.
– Obtain receipts or acknowledgment from the beneficiaries to confirm they have received their share.
Conclusion
Probate marks the beginning of a series of important tasks that must be handled with diligence and integrity. From collecting assets and settling debts to distributing inheritances and finalising tax matters, each step is crucial to ensure the deceased’s estate is managed according to their wishes and legal requirements. By following these guidelines, you can navigate this process with confidence and respect for your loved one’s legacy.
The probate process can be intricate and sometimes overwhelming. If you encounter complications or are unsure about any step, seeking our advice. We specialise in probate and having our wise counsel on board can be stress relieving and speed up the process.
This blog was prepared by Alexander JLO’s senior partner, Peter Johnson on the 16th January 2025 and is correct at the time of publication. With decades of experience in almost all areas of law Peter is happy to assist with any legal issue that you have. His profile on the independent Review Solicitor website can be found here.