In today’s blog, we look at the procedure involved in probate after the grant of probate is issued and give you some ideas as to the length of time that is reasonable for a solicitor to release monies to beneficiaries.
First steps in the process
Once the grant of probate or letter of administration is received, the first thing your solicitors will do is send it to any financial institutions where the deceased person had an account. This includes banks, mortgage companies, and insurance firms, who will usually refuse to release funds without this document.
As soon as your solicitor has access to the funds, they may need to pay an initial instalment of inheritance tax. They may also need or want to place a Creditor’s Notice in the Gazette, the Public Record, and local papers, in case the estate has any unknown debts.
The solicitor’s procedure after the funds have been released
When the financial institutions involved with the estate have released funds, your solicitor will go on to (not necessarily in this order):
- Pay the bill for the funeral
- Start paying beneficiaries
- Deal with any outstanding enquiries from the Department for Work and Pensions – this step, if it’s necessary, can take a long time
- Sell shares and other assets or transfer them to beneficiaries. If they have placed a Creditor’s Notice, they should wait until the minimum two-month response period is up before they do this
- Pay any remaining debts
- Sell or transfer any property
- Finalise any outstanding legal work, such as setting up trusts
- Pay the full amount of inheritance tax and any outstanding income tax
- Finalise your records and make any outstanding distributions to beneficiaries
What is the timescale for the distribution of assets?
It is difficult to give any precise timescale for distribution of the assets especially when the sale of property and pensions are involved as there are often third parties involved. The Creditor’s Notice which is advertised in The Gazette has a two-month response period therefore beneficiaries should not expect any assets to be released during this period. After this time, the solicitor may be able to (depending on the size of the estate) start making interim payments to the beneficiaries. Your solicitor does however have a professional obligation to deal with the matter within a reasonable period of time and not to unduly delay the administration.
If you require a solicitor to deal with obtaining probate or the administration of an estate, or if you feel that your current lawyers are unduly delaying the administration, why not give one of Alexander JLO’s expert probate lawyers a call and see what we can do for you?
This blog was prepared by Alexander JLO’s senior partner, Peter Johnson on the 22nd May 2020 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
When the sale of deceased parents house is complete, does the lawyer distribute inheritance funds via cheque or bank transfer?
Thank you for your interest in our blog Gary.
It will depend upon the solicitor firm’s policy as to whether funds are remitted by cheque or bank transfer. Please note that there is sometimes a charge for the latter.
It’s best to check with them.
Peter Johnson
Senior Partner
Hi there
I came across your blog online and wanted to seek some advice.
I’m a beneficiary after a very long process of intestate. The accounts have been signed for and the solicitors are gathering everyone’s ID and bank details. I’ve been advised no funds will be released until all of this has been settled. Is this correct? I was originally advised it would take a couple of weeks to then be told months and I need this money to pay for something.
Thank you for your interest in our blog.
The short answer is that is will depend what instructions the administrator of the estate has provided to their solicitors.
It is not unusual to wait until all beneficiaries have provided their ID and associated documents but by the same token, it is far from unheard of for each beneficiary to be paid their portion of the estate once they have satisfied those requirements.
In the circumstances I would ask the administrator if they would be willing to release your inheritance now, rather than having to wait for everyone else.
I hope this helps.
Hi who pays out to the beneficiaries after a house has been sold is it the probate solicitor or the conveyance solicitor and how long before recieving money
Thank you for your interest in our blog, Angel.
Whilst I cannot comment on the precise circumstances of your case as I have not seen any of the papers, I can advise generally as follows.
On the sale of a probate property the net proceeds would usually be paid by the conveyancing solicitor to the estate’s account or to the solicitor acting on the probate rather than the beneficiaries direct. Note I do say usually as it will depend on the instructions of the executors under the will.
As to the length of time for funds to be released it would depend upon the stage that the administration of the estate had reached and you would be best raising that question with the executors who in turn can raise it with the probate solicitors.
I trust that this helps.
Peter Johnson
Senior Partner
I am a beneficiary of a will. The solicitor is waiting to receive all beneficiaries responses with ID and bank details before releasing funds. There are 22 beneficiaries and this has been going on for months. Still not everyone has replied. How long is acceptable to wait? What are my rights
Dear Emma
Thank you for your interest in our blog.
The solicitors act on instructions from the executors so your first port of call would be to check with them the reason for the delay.
It is usual to wait until all of the ID checks are performed before making final payments but there is no reason why interim payments should not be made to those beneficiaries who have co-operated.
Unfortunately there are no hard rules as to how long the process takes.
Peter Johnson
Senior Partner
My grandfather set up a trust before his death that my mother was to be a lifetime tenant and the capital should remain. This amount was 125.000. We were advised over two years ago to end the trust because of the current financial climate. The solicitor paid himself six thousand and gave my mother a cheque for 22 thousand and the six beneficiaries got 7 and a half thousand each. We were told my mum was overpaid throughout the years of 33 thousand. Two years later there’s only 22 thousand left. How is this right. We have been totally misguided by the people who were looking after our best interests
Dear Sarah
Thank you for your interest in our blog.
These are matters which I am reluctant to go into detail in over a public forum due to confidentiality reasons. I will email you directly.
Best wishes
Peter Johnson
Senior Partner