Estate Administration Basics
Understanding probate, wills, and administering your partner's estate.
Estate Administration Basics
Understanding probate and estate administration helps you manage your partner's estate. This module explains the key concepts.
What is Probate?
Probate is the legal process of:
- Proving the will is valid
- Valuing the estate
- Paying any debts and taxes
- Distributing assets to beneficiaries
When Probate is Needed
Probate is usually required when:
- There's property in your partner's sole name, or held as tenants in common, to sell or transfer
- A bank or building society won't release the money without it (each one sets its own limit, so ask them)
- Shares or other investments need to be sold
Applying for Probate: Step by Step (England and Wales)
If there's a will, executors apply for a "grant of probate". If there's no will, administrators apply for "letters of administration".
- Value the estate. List everything your partner owned (property, money, possessions) and everything they owed.
- Check whether Inheritance Tax is due. If it is, report the estate to HMRC on form IHT400 within one year. You'll normally have to start paying the tax before probate is granted.
- Wait for HMRC's code. If you sent an IHT400, HMRC sends you a code, and you need it before you apply.
- Apply for probate. Apply online if you can (it's faster than by post). The fee is £526 if the estate is worth more than £5,000, and nothing if it's £5,000 or less. Extra copies cost £2 each if you order them with the application.
- Wait for the grant. You'll usually get probate within 12 weeks of applying. Don't sell property or make financial plans until you have it.
- Collect in, pay out, distribute. Close the accounts, pay any debts and tax, then pass what's left to the beneficiaries.
Sources: GOV.UK: Applying for probate and probate fees.
Tip: You can apply yourself or use a solicitor. Applying yourself is realistic for a simple estate.
Inheritance Tax
There's normally no Inheritance Tax if the estate is worth less than £325,000. The threshold can rise to £500,000 if the home goes to children or grandchildren. Above the threshold, the standard rate is 40% (GOV.UK).
Everything left to a spouse or civil partner is exempt, so you're unlikely to owe Inheritance Tax on what passes to you.
Timeline
Probate itself usually takes up to 12 weeks from applying. Sorting out the rest of the estate takes longer, especially if there's property to sell.