Grant of Probate gives you the legal right to deal with someone’s estate after their death. Probate can be applied for by executors named in a will or, in the absence of a will, closest relatives. Probate does not need to be handled by a solicitor, although many people choose to instruct one, particularly if an estate is complex. Anyone who is handling probate without a solicitor should be wary of several common mistakes that can cost time and money.
Misinterpretation of the will
Wills are often written in technical legal language which can cause some issues for those unfamiliar with certain terms. This can lead to confusion and debate among beneficiaries.
Filling out probate documentation and paperwork incorrectly
Handling probate involves filling in probate and inheritance tax forms which can be one of the most difficult parts of the whole process. It is easy to misunderstand what is being asked and give the wrong information. Filling in probate and inheritance tax documents incorrectly could even lead to penalties from HMRC further down in the line. Guidance on completing the forms can be found on the Government website. Applications for probate that are returned due to missing documents or errors can currently take up to 20 weeks to resolve, new research has shown.
Giving money to beneficiaries too early
It is essential that all of an estate’s assets are collected before being distributed among beneficiaries. Piecemeal release of funds to beneficiaries can cause problems if future costs should arise or unexpected creditors should come forwards.
Paying inheritance tax too late
If an estate is liable for inheritance tax, some or all of this must be paid within six months of the person’s death. Probate novices may not be aware of this, leaving them paying interest on the tax due or even facing HMRC penalties.
Incorrect transfer of property
Correctly understanding the difference between joint tenancy and tenants in common will help you to correctly transfer property ownership in probate. Failure to do so correctly can lead to difficulties selling the property and incurring legal costs to rectify mistakes. If you are selling a property left behind by the deceased, you are likely to require a solicitor for conveyancing needs or should you encounter a form LL restriction- a form registered against a property in a bid to prevent fraud. Seeking the help of legal experts at a firm such as Parachute Law can help to navigate these areas.
Incorrectly assessing debts and liabilities
Every effort must be made to find out all of a person’s debts and liabilities. If an unexpected creditor comes forward after assets have been distributed, a beneficiary may be asked for that money. They, in turn, may act against the executor for failing to assess liabilities and debts correctly. This could even result in legal action against the executor. Executors must also be careful to collect all of the assets- even very small ones- as any loss to the estate could lead to the executor being held personally accountable.
Handling probate on a simple estate can be straightforward, provided that you research thoroughly and follow all guidelines. On more complex estates, however, it is easy to see why many people turn to legal experts instead.