Is Probate Needed?

[Chalain]

Hello, I’m currently dealing with an estate as executor. As the value of the estate, including the main residence, comes to less than £500,000, I believe this means that inheritance tax will not be payable. As inheritance tax is not payable, am I still obliged to apply for probate? Also, what should I do about the insurances and maintenance and repair bills for the property, as I do not have access to the deceased’s funds, and I’ve heard that, if probate is required, it could take as long as a year to get it? For example, there is currently water ingress due to broken rendering. Any advice would be most gratefully received.

[Pezza54]

Hi
As executor you need to make an appointment with the deceased's bank. Take the will, proof of ID. The bank will release funds for the funeral. Explain your predicament regarding costs of maintenance work to the house and hopefully the bank will release more money for this expense.

Open an executor's bank account, (joint account if you are not the only executor) and ask the deceased's bank to transfer money into this account.

Unless all the assets are jointly owned and pass automatically to the surviving spouse or civil partner, probate grant is required. Probate should not take anything like as long as you suggest, several weeks, possibly a few months. This assumes the IHT form is completed correctly and not queried by HMRC.

At present the nil rate IHT band is £325k. A residence nil rate rate band of up to £175k may be added provided the deceased owned the property at the time of death, lived in it as his or her main residence at some point in their life and left the property in the will to a direct descendant.

Gov.uk provides explanatory notes about probate and an online IHT checker. If you are applying for probate and not employing a solicitor make sure you get the forms right. This will save time.

[PallasAthena]

Probate and liability to pay IHT are separate things. IHT thresholds are relatively high - How Inheritance Tax works: thresholds, rules and allowances: Overview - GOV.UK (www.gov.uk) - but Probate is your legal authority to manage the Estate from the first £. If IHT is due you have to pay it before Probate is granted.

You will need Probate. Only very small Estates might get away with not needing it. £500,000 is not a small Estate. You will probably need it to get access to the deceased's funds and to sell or transfer ownership of the property.

As Executor you are responsible for the maintenace of the property until you sell it.