Probate explained: what to do when someone dies

When someone dies, their money, property and possessions (their "estate") have to be collected, their debts and taxes paid, and what's left passed to the people entitled to it. "Probate" is often used to describe the whole process, but strictly it means getting legal authority to deal with the estate.

Grant of probate or letters of administration?

• If there is a will, the executors named in it apply for a grant of probate.
• If there is no will, or no executor is able to act, the closest relatives apply for letters of administration and are called administrators.

Both are known as a "grant of representation". Banks, pension providers and the Land Registry will usually ask to see it before releasing money or transferring property.

Do you need a grant?

Not always. If the estate is small, and especially if there is no property in the person's sole name, banks may release money without a grant. Each organisation sets its own limit. Assets held jointly, such as a joint bank account or a home owned as "joint tenants", usually pass automatically to the surviving owner.

The main steps

1. Register the death and find the will. The original is often held by a solicitor or at a will storage service.
2. Value the estate. Contact banks, pension providers and insurers, and get valuations of property and possessions at the date of death.
3. Deal with inheritance tax. For most estates no inheritance tax is due, and you report the values in the probate application. If tax is due, or the estate is not an "excepted estate", you must send form IHT400 to HMRC. You then normally wait 20 working days before applying for probate. Some inheritance tax usually has to be paid before the grant is issued.
4. Apply for the grant, usually online through GOV.UK, and pay the application fee.
5. Collect in the assets, close accounts and sell or transfer property.
6. Pay debts, including funeral expenses and taxes. Executors often place a notice in The Gazette to protect themselves against claims from unknown creditors.
7. Prepare estate accounts and distribute the estate to the beneficiaries.

Inheritance tax basics

Inheritance tax is generally charged at 40% on the value of an estate above the available allowances. Everyone has a "nil-rate band" of £325,000. There is an extra "residence nil-rate band" of up to £175,000 when a home is left to children or grandchildren, which tapers away for larger estates. Gifts to a spouse, civil partner or charity are generally exempt, and unused allowances can usually pass to a surviving spouse. The rules are detailed and change, so check GOV.UK or take advice.

Inheritance tax is normally due by the end of the sixth month after the month of death. Interest is charged after that.

When to use a probate solicitor

Many people handle straightforward estates themselves. Consider a probate solicitor if the estate includes property or investments, inheritance tax is payable, there are overseas assets or a business, the will is unclear, beneficiaries are vulnerable or under 18, the estate may be insolvent, or family members disagree. Solicitors can carry out the whole administration, or just help with the probate application.

Disputes and claims against an estate

Some people can challenge a will, for example if they believe it is invalid, or make a claim under the Inheritance (Provision for Family and Dependants) Act 1975 if they were not reasonably provided for. Claims under the 1975 Act must normally be brought within six months of the grant. Executors should usually wait until this period has passed before distributing the estate.