Grant of Probate - House Buyers Bureau

How long does Grant of Probate take?

Dealing with the loss of a loved one is undoubtedly challenging, and the legal processes that follow can add additional layers of complexity. One crucial aspect is obtaining a Grant of Probate, a process that involves validating the deceased’s will and enabling the executor to administer the estate.

In this article, we’ll delve into the intricate process of obtaining a Grant of Probate, including the recent changes in January 2024, shedding light on the question that often looms large: “How long does Grant of Probate take?”

Understanding the Basics of Probate

What is probate?

Probate is the legal process that ensures the deceased person’s assets are distributed correctly among the beneficiaries stated in their will. It involves the identification and valuation of the deceased’s assets, settling any outstanding debts or taxes, and distributing the remaining estate to the rightful beneficiaries. The Grant of Probate is a legal document issued by the Probate Registry, confirming the authority of the executor named in the will to manage the deceased’s estate.

Who can apply for probate?

The person responsible for applying for probate is usually the executor named in the deceased’s will. An executor is an individual appointed by the deceased to carry out their wishes and administer their estate. If there is no will, the closest living relative can apply for probate.

How long does probate take?

Grant of probate is typically granted within 16 weeks of application, although it can take longer if you need to provide additional information during the process. Collecting all the information at the start can speed up the process.

What does the probate process look like at a glance?

There are a number of steps to completing the probate process:

Identification and valuation of assets
Payment of inheritance tax
Application for probate
Probate Registry processing
Notification to institutions
Settling debts and distributing assets
Finalising probate

In detail: Grant of Probate

Before applying

Even before the application process begins, you must find out if probate is needed, if you’ll need to pay inheritance tax (and start paying it), and whether you need to report the full details of the estate to HMRC.

Is probate needed?

Probate is only needed if the financial organisations the person used, for their mortgage and banking, for example, require it. You may not need probate if the person who died only had savings, owned shares or money with others (as this automatically passes to the surviving owners), or if they only owned land or property as ‘joint tenants’ (this also passes to the surviving owners automatically).

Does any inheritance tax need to be paid?

You also need to identify if you need to pay inheritance tax, which can be done by estimating the value of the deceased’s estate. Even if you don’t need to pay Inheritance Tax, you’ll still need to know the value of the estate for your probate application.

If you do need to pay Inheritance Tax, you’ll need to start making payments and then wait 20 days before applying for probate. Where the payments are due before the assets are released, you may need to take out a loan.

Reporting full details of the estate

Whether you need to supply full details of the estate or simply the total value will depend on whether the estate is an excepted estate or not, and if there’s no inheritance tax to pay. Most estates are excepted estates; they are typically deemed an excepted estate if any of the following conditions apply:

Its value is below the inheritance tax threshold
The estate is worth £650,000 or less and any unused threshold is being transferred from a spouse or civil partner who died first
The deceased left everything to a spouse or civil partner living in the UK or to a qualifying charity and the estate is worth less than £3 million
The deceased was living permanently outside the UK when they died and the value of their UK assets is under £150,000

You’ll need to send full details of the estate’s value if any of these conditions apply, even if no tax is due.

How is the probate process changing?

Starting from January 17 2024, as disclosed in an HMRC statement, the process of applying for probate is changing due to the increased number of applications and growing backlog in the number of grants being issued. From now on, individuals applying for probate in England and Wales are no longer required to fill out an IHT421 probate summary form for submission along with their IHT400 inheritance tax form.

The aim of the new process is to:

Help reduce the number of forms that customers have to complete.
Prevent delays caused by premature probate applications.
Give customers the confidence to proceed with their probate application at the right time.

What is the new process?

Applicants must now initiate the probate process by submitting the IHT400 to HMRC. Upon receiving an acknowledgement letter from HMRC, containing a unique code and estate values, applicants can register the probate application on the HMRC Charter standards (HMCTS) online portal.

In cases where HMRC cannot issue a unique code, the applicant will receive guidance on the next steps. Probate applications with an IHT400 submitted to HMRC will be rejected without these codes and values to minimise delays associated with premature applications.

Applying for probate

Now you know that you need to apply for probate, how much inheritance tax is due and whether you need to report the full details or simply the total of the estate, you can apply for probate.

You will need to submit the grant of probate and inheritance tax forms, along with the death certificate.

Identification and valuation of assets – The first phase involves a detailed inventory of the deceased person’s assets. This includes a comprehensive assessment of properties, bank accounts, investments and personal belongings. Accurate valuation is crucial, as it lays the foundation for subsequent steps in the probate process. This step may involve engaging valuers or appraisers, to ensure accurate asset valuation.
Payment of inheritance tax – In cases where the estate is subject to inheritance tax, the executor or administrator must submit the necessary tax forms to HM Revenue & Customs (HMRC). The tax liability is calculated based on the value of the estate, and arrangements for payment or potential exemptions are addressed during this stage.
Application for probate – The executor or administrator must apply for the grant of probate from the Probate Registry. This involves completing the necessary application forms, providing detailed information about the deceased’s assets and liabilities, and paying the relevant fees.
Probate Registry processing – The Probate Registry undertakes a thorough review of the application and supporting documents. If everything is in order, the grant of probate is issued. This stage may take several weeks, and the timeline can be influenced by the workload and efficiency of the Probate Registry.
Notification to institutions – Once the grant of probate is received, the executor gains the legal authority to manage the deceased’s assets. The executor then promptly notifies banks, investment firms, and other relevant institutions about their newfound authority. This step is crucial to ensure a smooth transition in the management of financial accounts and assets.
Settling debts and distributing assets – The executor assumes the responsibility of settling any outstanding debts, taxes, or expenses from the estate. This process requires careful financial management, and the executor may need to liaise with creditors and tax authorities. Once the financial obligations are met, the remaining assets are distributed to the beneficiaries per the terms stipulated in the will.
Finalising probate – The conclusion of the probate process involves the executor providing a comprehensive account of their administration to the Probate Registry. This step ensures transparency and accountability in the handling of the deceased’s estate. The finalisation of probate marks the conclusion of the legal process, and the estate administration is considered officially closed.

Chris

Chris has worked in property all his career, first as a successful estate agent before spotting a gap in the market for buying property directly from people looking for a simple, quick sale.

He has a passion for property and as an experienced valuer, has looked at well over 50,000 properties so far at HBB. He has extensive experience in property buying and regularly comments in the press on property matters, trends and promotes ways to simplify and speed up the selling process.

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