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Legal and Financial Steps After a Death
After someone dies, their money, property, possessions and debts form what is known as their estate. Somebody will need to take responsibility for dealing with that estate and making sure the person's affairs are properly brought to a close.
This can sound daunting, particularly if you have never dealt with probate or an estate before. Not every estate is complicated and professional help is not always required, but it is important to understand your responsibilities before money or possessions are distributed.
Dying Matters Leicestershire and Rutland works in partnership with AfterLoss, which provides practical guidance to help families organise and deal with someone's affairs after a death.
The Will and Executor
One of the first things to establish is whether the person who has died left a valid will.
A will usually names one or more executors. An executor is responsible for administering the estate and carrying out the instructions in the will.
Look for the most recent original will rather than assuming that a copy you find at home is the final version. The original may be held by a solicitor, bank, professional will writer or probate storage service.
If there is no valid will, the estate is dealt with under the rules of intestacy. Instead of an executor applying for probate, someone entitled to deal with the estate may need to apply for Letters of Administration.
Being named as an executor does not mean that you have to deal with every aspect personally. Executors can obtain professional advice or appoint professionals to help administer the estate.
What's in the Estate
Before an estate can be distributed, the person dealing with it needs to establish what the person owned and what they owed.
This may include bank and savings accounts, investments, property, vehicles, valuable possessions, pensions or life insurance policies, as well as mortgages, loans, credit cards, household bills and other liabilities.
Ownership matters too. Assets held jointly may be dealt with differently from assets owned solely by the person who died.
You may need to contact banks, investment providers and other organisations to obtain balances or valuations at the date of death.
Do not forget digital assets and accounts. These may include online banking and investments, cryptocurrency, websites, cloud storage, photographs, email accounts and social media. Different providers have different procedures following a death.
Probate
Probate is the legal authority which allows an executor to deal with certain assets belonging to someone who has died.
If there is a will, an executor may apply for a Grant of Probate. If there is no valid will, an eligible person may instead apply for Letters of Administration.
A grant is not required for every estate. Whether one is needed depends on the assets involved, their value and how they were owned. Banks and other institutions may have their own requirements.
Before applying, you need to value the estate and establish whether Inheritance Tax needs to be reported or paid.
GOV.UK provides a probate service which takes you through the process and helps you establish what is required.
Managing the Estate
Once the executor or administrator has the necessary authority, they can collect the estate's assets, settle debts and liabilities and deal with any property or investments which need to be sold or transferred.
Good records are important. Keep copies of valuations, correspondence, receipts, payments and money received by the estate.
Only when the liabilities have been settled and the estate is ready should the remaining assets be distributed to the beneficiaries according to the will or the rules of intestacy.
Some estates can be completed relatively quickly. Others take considerably longer, particularly where property has to be sold, tax is involved, beneficiaries need to be traced or there is a dispute.
When to get Professional Help
Many straightforward estates are dealt with by family members without using a solicitor for every stage.
There are, however, situations where specialist legal, tax or financial advice can be valuable.
These include estates involving trusts, businesses, farms or overseas assets; complex tax issues; uncertainty over the validity or interpretation of a will; substantial debts; disagreements between executors or beneficiaries; or claims against the estate.
You may also simply decide that administering the estate is more than you want to take on while you are grieving.
A solicitor can advise on specific parts of the process or, where appropriate, take responsibility for much of the administration.
