Find out if you need to apply for probate. Learn about the basics of inheritance tax
What is probate?
ProbateProbate
The legal term for giving someone the authority to manage the estate of a person who has died. In Scotland, probate is known as confirmation. (or
confirmationConfirmation
The term used in Scotland to refer to the process of applying for the right to deal with a deceased person's estate. if you live in Scotland) is a general term used to describe the process you may need to go through to apply for the right to deal with a deceased person's estate. This is a process that most people dealing with a deceased person's estate need to go through, and involves applying to the
probate registryProbate registry
A section of the court responsible for overseeing probate and issuing grants of representation in England and Wales..
Depending on the value of the estate and who it is left to, you may have to pay inheritance tax
The probate registry will formally confirm that the
willWill
A document that states what someone would like to happen to their estate when they die. is valid or, if there is no will, check that you are legally allowed to deal with the estate. Once they are satisfied, they will issue a legal document called the
Grant of ProbateGrant of Probate
An official document confirming that the will is valid and stating who is the personal representative. It can be used to show that the personal representative has the right to access funds, sort out finances, and collect and share out the deceased person's assets as set out in the will. In Scotland this document is called confirmation., or the Grant of
Letters of AdministrationLetters of Administration
An official document stating who is the personal representative when a person has died without making a will. (if there wasn't a will). This legal document names the person or people responsible for dealing with the estate. In Scotland, both documents are known as confirmation.
Who needs to apply for probate?
Most
personal representativesPersonal representatives
The person who is legally responsible for dealing with the estate of a deceased person. will need to apply for probate, or get a professional organisation to do it for them.
However, if all of the person's assets were in joint names – and automatically pass to the other joint owner – or if the total value of the assets is less than £5,000, you may not need to get probate. But you should still check with each bank and insurance company involved, as they may have limits on what assets they can release without seeing a Grant of Probate.
If you are not sure whether you need to apply for probate or not, contact our Bereavement Support team on 0845 850 0088.
How to apply for probate
You can apply for probate yourself, or you can ask a solicitor, bank or probate service to handle it for you. To apply for probate yourself, you need to complete some application forms and send them to your local probate registry. You can download these from HM Revenue & Customs (HMRC) or order them from the Probate and Inheritance Tax Helpline on 0845 302 0900. There is a standard fee for applying for probate.
In Scotland, you apply to the Sheriff Court instead of a probate registry. Visit www.scotcourts.gov.uk for more information, or consult a solicitor.
What happens once you've got probate?
Once the personal representative has received probate, they will need to show the legal document to banks, building societies and other organisations to prove that they have the authority to deal with any assets the deceased person owned. They will then be able to complete the other tasks involved in administering the estate: accessing funds, sorting out finances, and collecting and sharing out the deceased person's assets as set out in the will.
Inheritance tax
The process of applying for and receiving probate can take some weeks. Depending on the value of the estate and who it is left to, you may have to pay
inheritance taxInheritance tax
Tax that is paid from the estate of a person who has died, before the estate is shared out to the beneficiaries.. And generally, the probate registry will not grant you probate until you have paid some or all of the inheritance tax due, so it is important to deal with this as soon as you can. To find out more about inheritance tax, visit HMRC.
Inheritance tax is normally paid by the personal representative, using money from the estate. It may be possible for HSBC or another bank to pay this, using money held in the deceased person's accounts. If there is not enough money immediately available in the accounts to pay the inheritance tax, the personal representative may be able to apply for a loan. To find out more, talk to our Bereavement Support team on 0845 850 0088.
Other taxes
The personal representative is also required to settle other taxes such as income tax (if the deceased person was working and paying tax). Capital gains tax may also be payable if you inherit assets from the person who died and later sell them. To find out more about how the rules affect your personal situation, contact HMRC and they will tell you what to do.
Where to get more information
For more information on probate and how to apply, inheritance tax and other issues to do with administration of the estate, visit:
HMRC: www.hmrc.gov.uk
The Probate Service: www.justice.gov.uk/guidance/courts-and-tribunals/courts/probate
