What to do before applying for probate and paying Inheritance Tax

Introduction

An essential step to take after the death of a loved one is to build a picture of their estate
(their estate is everything owned by them). This is useful so you can figure out if you will need to go through probate, pay inheritance tax and you can settle any potential debts.

Finding a will

A critical document for building a picture of their estate will be their will, if they wrote one, and if it’s valid.

Working out whether or not they have a will is key before you do anything else. This is because a will usually lays out their wishes for what happens to everything they own and who is responsible for carrying out the wishes laid out in the will (i.e. the executor), as well as the details of what they want to happen to their property and belongings.

Where can I find their will?

The best place to look for and/or make enquiries about their will is:

• Their home
• Their lawyer/solicitor/accountant/financial adviser (if they had one)
• Their bank (banks sometimes hold wills)
• Will bank storage services
• Probate Registry
• The National Will Register (where you can search for wills)
• Family and friends

What makes a will valid?

A valid will has to be signed by the person whose will it is, and witnessed and signed by two independent witnesses who are 18+ years old. If you find a will but it is unsigned, it is not a valid will.

If any of the below apply to the person writing the will and is proven - it is not valid.

• They lacked mental capacity at the time of writing
• They were forced or pressured to write their will by a third party (under duress)
• They were manipulated into writing their will by a third party (under undue influence)

What if there isn’t a valid will?

If there is no valid will, the estate will be divided up according to the rules of intestacy. These laws are the UK government's way of deciding how everything you own is split up.

To find out more, you can check out this blog, here.

How do I find what’s in their estate?

To build up a full picture of their estate, you need to identify their assets and debts – and their rough values.

The person who has died might have listed out details of their estate and their assets in the appendix of their will, or left a folder containing all the information you would need.

If this isn’t the case, and you’re unsure about where to start figuring out what is in their estate, think about:

• Property
• Bank & building society accounts
• National Savings & Investment products
• Savings/investment accounts
• Shareholdings
• Life insurance
• Pensions
• Personal possessions such as cars, collections, antiques or jewellery
• Foreign, Business or Agricultural assets
• Mortgages
• Credit card and store cards
• Funeral costs
• Any other places you think they might have assets and/or debts

A good starting point can be looking through their paperwork at their home, such as bank statements to see payments coming in and out, and even the bank cards in their wallet or purse.

You will need to include assets and debts that are held in joint names, not just in their name, and consider gifts they made in the last seven years before they died, as well as if they benefited from a trust during their lifetime or gave away anything and retained a benefit such as a house that they continued to live in.

Top Tip - don’t forget to notify any relevant organisations about their death – we’ve explained how to do this here.

Would you like to learn more about probate and how our probate services could help you? Take Octopus Legacy’s probate quiz.

Worried about making mistakes in the probate process? Short on time? Uncomfortable with the legal jargon and processes that go alongside probate? We can help.

Probate is a load of admin – all when you need it the least. We offer a range of services that make the probate process easier, from helping you get a Grant of Probate, to handling the full estate administration.

Our Grant of Probate services include:

• If needed, helping you work out what inheritance tax you need to pay
• If needed, helping you fill out an inheritance tax form
• Helping you apply for the Grant of Probate
• Delivering your Grant of Probate to you once it’s been granted

Our Full Estate Administration services include:

• All of the above help with Grant of Probate
• All the administration in dealing with banks, energy companies, HMRC, etc.
• Gathering in all the money and assets
• Paying any creditors (out of the estate assets)
• Helping to organise a property sale
• Drafting the estate accounts
• Distributing the estate afterwards

Want to learn more? Speak to one of Octopus Legacy’s probate experts for free by arranging an appointment here.