Probate Question?

[jazztheman]

My mum passed away yesterday and on her will I was requested to be her sole executer. She has left no property and her estate (savings) is approximately £13K, to be divided equally amongst her five children.

 

Because I have never been an executor before this process is all new to me. My question is, is there need to register for probate? and if so what are the reasons?

[AndyOrch]

Yes you will still have to apply for Probate Jazz as the estate is over the 5 K threshold.

 

https://www.gov.uk/wills-probate-inheritance/overview

 

Regards

 

Andy

[Mr.P]

Because I have never been an executor before this process is all new to me. My question is, is there need to register for probate? and if so what are the reasons?

 

You could collect the funds and distribute the inheritance without applying for probate: Most financial institutions will release funds up to around £25,000 on signing an indemnity form. However, doing so exposes you to being held personally liable if there are any disputes or a debtor appears demanding payment.

 

With probate in hand (grant of representation), you have a degree of protection from disputes and creditors. Also, once probate has been granted, there is strict time limits should anyone wish to pursue the estate for monies. The £215 fee is money well spent (in my opinion), and it is worth getting extra copies of the grant. The fee is recoverable from the estate, so you won't be out of pocket. Tip: Keep detailed records of everything you pay out and all money collected.

 

The IHT205 and PA1 forms are fairly easy to fill in, and as the value of the estate falls well below the inheritance tax threshold, you don't have to give exact figures.

[jazztheman]

Thanks for all the answers to my query.

I spoke to the bank and there is no problem for myself (being the executor) for the release of funds from her bank. I have dealt with my mum's finances for a number of years and the only creditor will be the Care Home that she resided in. Her estate is split equally amongst her five children.

Is there still a legal obligation to apply for probate because her final estate is valued at around £13K?

[martin2006]

See andys post#2 jazz and check the link

Sorry for your loss friend.

[jazztheman]

Thanks,

Is there a time limit to register for probate?

[Mr.P]

If the estate is under the Inheritance Tax threshold (currently £325,000), you can take as long as you need to apply for probate. If IT is due, then you would need to submit an IHT400 form and pay the tax due within six months of the death or risk having to pay additional fees (late filing fines & interest).

 

In your case, the estate has a nominal value of £13,000 and no property, the IHT205 form would have to be filed along with the PA1. Take your time, there is no rush, and don't feel intimidated by the forms. You don't have to give accurate figures down to the last penny: When I filed one earlier this year, a couple of figures were just plucked from thin air (value of chattels) and I'm still not sure all investments haven't been accounted for.