What Happens to a House When Someone Dies? A Simple Guide to Probate

When losing a loved one, the complex process of handling their assets can be difficult to navigate during a time of grief.

The probate process typically involves several steps, beginning with registering the death, determining if there is a will, applying for probate, valuing the estate, settling debts and taxes, and finally distributing the remaining assets amongst beneficiaries.

To those unfamiliar, the process can be daunting. In this article we explore the steps to applying for probate, conditional factors that can impact the process, circumstances under which a grant of probate is not required, and more.

Registering a death

The first step in applying for probate is to register the death. If the death has not been reported to a coroner, this should be done within five days in England and Wales, or eight days in Scotland.

To do this, you will need a medical certificate confirming the cause of death. The person who registers the death should be a relative of the deceased.

Once the death is registered, you will have a death certificate, which is required for handling the deceased’s assets.

Determine if there is a will

When a person dies’ intestate’, which means to have died without writing a will, their estate will be administered according to intestacy laws.

Without a will, the rules of intestacy state that only close relatives can inherit from the estate, i.e. those who are related by blood or marriage. This typically includes spouses, children, parents, or siblings. This will also affect who can apply for probate, as it should be the closest relative of the deceased.

However, in the case that the deceased has a will, they should have a named executor to administer their wishes. If not, this duty should pass to the next of kin. You still need to apply for probate if the person has a will, as the application for probate confirms the authority of the representative to handle the estate, and a grant of probate is required to sell or transfer assets.

Calculate inheritance tax

Before applying for probate, you must value the deceased’s estate, and calculate any potential inheritance tax.

If the estate value is below £325,000, it is classed as an ‘excepted estate’ and doesn’t require a separate report to HMRC, although you must still declare the value in the probate application. However, if the total value of the estate is above the Inheritance Tax nil-rate band, you may be required to pay additional tax on the property and other assets.

Whether or not the deceased’s estate exceeds this value, this should still be declared as part of the application for probate.

How to apply for probate

Do you need to apply for probate?

There are a select few circumstances under which you may not need to apply for probate.

For instance, if the deceased owned a property as joint tenants, the surviving owner automatically inherits the property and does not need to apply for probate.

Additionally, financial assets under the value of £5,000 do not legally require a grant of probate to distribute.

Who can apply for probate?

In the event the individual has died without a will, the applicant should be their closest living relative. Otherwise, the named executor of their will should apply for probate. If for any reason the executor of the will cannot carry out these duties, this again reverts to the closest family member.

When applying for probate, you do not necessarily need to hire a probate solicitor, but the process does require extensive due diligence to prevent complications.

Applying for probate

Applying online or by post

You can choose to apply online or by post, with some restrictions in England, Wales, and Northern Ireland. In these areas, you must be the spouse, civil partner, or child of the deceased, and possess a copy of their death certificate in order to apply online. You must also have submitted the relevant tax forms to HMRC in the case that inheritance tax is owed on the estate. If these conditions are not fulfilled, you are required to apply by post.

The application fee for probate in England and Wales is currently £300, while in Northern Ireland it is £310 plus an additional £77 for DIY applications, although these fees do not apply to estates valued under £10,000.

Once probate is granted

A grant of probate takes around 12 weeks, but this may vary.

Once you have received it, you may begin handling the estate of the deceased. It is wise to apply for multiple copies (which cost £16 each), as it will be required for a number of the following actions.

The below is not an exhaustive list but an indicator of the next steps once probate is granted.

Close accounts

Once the grant is received, you should begin to inform all relative organisations that the deceased has passed.

This includes but is not limited to:

• banks
• saving providers
• pension companies
• mortgage, credit, or loan providers
• utility companies such as gas, electricity, and water providers

Handling money and debts

Most banks typically pay out any money left in bank accounts to a certain threshold without a grant of probate.

But if the deceased’s account value exceeds that threshold (which varies between banks), only once you have the grant of probate can you withdraw and distribute the rest of their finances.

Any debts will also have to be settled, except those co-owned. For instance, a mortgage shared between two people will automatically revert to the living party.

However, it is important to note that any debts should be paid from the estate of the deceased, and not from the inheritors.

If there is no will to determine the distribution of assets, there are certain laws in place which allocate a given amount to the spouse or civil partner, and divide the rest between them and any children. However, probate can be contentious and this part of the process may lead to further complications without a will.

Do I need a solicitor to apply for probate?

Short answer: no. You can do all of the above alone.

However, the process can be complex and ongoing, and requires correct information and documentation to be supplied at every stage, particularly if you are faced with additional complications such as not having a will.

If you need assistance in applying for probate, our highly experienced solicitors are able to help. Get in touch today to find out more.