Probate & Estate-Planning is a niche specialism
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Q1: What is Probate, why should you act promptly?
Probate is the generic term normally used to describe the legal and financial processes involved in dealing with the property, money and possessions of a person who has died. It currently impacts around 50% of estates, delays can be costly as well as awkward financially, charges and and interest may apply when any inheritance tax due is paid late. Note that Inheritance tax has typically impacted 6% of UK Estates PA, this is forecast to double during the coming years.
Should a will exist, it will need to be proven as it maybe valid or invalid, a valid will means that a Grant of Probate is applied for. Should there be no will, or an invalid will, then a Grant for Letters of Administration is alternatively applied for following the laws of intestacy.
Once either Grant is obtained, the estate has to be valued and managed in accordance with relevant legislation, then distributed to the beneficiaries i.e. once the formalities have been completed. A typically difficult challenge is calculating and paying inheritance tax no later than six calendar month-ends following death with assets unable to be sold pending Grant approval, this complication and others we can discuss once you contact us.
The legislation associated with whether and how to submit inheritance tax forms (IHT400) and subsequently assessing whether and how to apply for probate can be complex. With time and care, things can be progressed without professional help, however, we can assist you to remove the burden of some or all of what's involved.
If you, as a willing Executor, take this on yourself, you can apply for probate via the Principal Registry (Family Division) calling 0300 303 0648 or visit https://www.gov.uk/applying-for-probate/apply-for-probate.
The institute of Chartered Accountants in England and Wales (ICAEW) has produced the enclosed consumer guide designed to help you that is accessible via the https://www.icaew.com/regulation/probate-services/probate-consumer-hub . Additional guides are available for Executors, Beneficiaries along with other useful material including bereavement support links.
Q2: What is Estate-Planning, why is it important?
Estate-Planning is the planning and organising of how you will manage and pass on your wealth before and after you die. It generally involves understanding your current wealth status as a prelude to planning further actions that typically include creating a Will, in order to document who gets what and when.
Your personal circumstances should ideally be assessed regularly throughout your life, annually for complex financial affairs, or otherwise every few years as things change for example when you settle down with someone, have children, invest in property, or accumulate other wealth. The birth of grandchildren may impact your intent, along with changing family dynamics; the death of appointed Executors and designated beneficiaries will also impact previous wills.
The benefits of estate planning help ensure your intentions are met with minimal interference, enabling a prompter transfer of assets following death, allowing you to potentially take steps to mitigate Inheritance tax payable as well. Without a will, the rules of intestacy apply that may create huge stress amongst those surviving i.e. with wealth being passed on to those who you wouldn't wish to benefit.
Connected with planning ahead is the need for many to consider implementing a Lasting Power of Attorney, both for matters relating to your finances and your health. For people with business interests, other considerations may apply such as updating Directors and Shareholder agreements for example.
The further ahead your estate planning occurs, the better, as the legislation is complex, hence options involved may take years to be tax-beneficial e.g. selectively investing wisely, lifetime gifting, establishing jointly-owned assets. If you are feeling philanthropic, perhaps looking for inspiration on giving it all away, then consider reviewing the enclosed Chuck Feeney link https://www.bbc.co.uk/news/uk-northern-ireland-54300268
NB. Some complex financial and tax-planning solutions may require an independent financial advisor to be consulted, as independent financial advice is beyond the scope of our services.