Top ten tips for a DIY probate application

4 January 2024

Probate

When someone dies it is often the case that the personal representatives (PR) of the estate will need to apply for a grant of probate in order for the beneficiaries to receive their legacies.

Who will be the personal representatives?

The personal representatives are usually the executors named in the last Will of the deceased, but if there is no Will they will normally be the next of kin.

It is the personal representatives who make the probate application unless they delegate it to a third party.

Third Party Probate Applications

For most of the probate cases we are involved with we act on behalf of the PRs, so effectively we make the probate application, but they approve the legal documents before the application is submitted.

This works well for a lot of people who find it difficult to focus on paperwork when they are grieving or simply do not like dealing with unfamiliar forms.

DIY Probate

Sometimes however the personal representatives wish to make the probate application themselves.

Some people find it a welcome distraction at a time when their thoughts might otherwise be overwhelming.

For those people, particularly ones that have not previously dealt with the probate process themselves, we thought it might be helpful to list out some tips to make the process smoother:

Prepare the Paperwork

Make sure you gather all the paperwork you will need before attempting to make the application.

Otherwise you will waste time picking up and putting down the task and that can be frustrating.

Calculate the estate value

Tot up the value of the estate to work out if it is an excepted estate.

If so you do not need to complete inheritance tax (IHT) forms, you can make the probate application directly to the courts without the need for tax forms.

In rough terms an excepted estate is one that is:

below the nil rate band (currently £325,000),
below £1 million and there is no tax to pay because of spousal exemption (see below) or charity exemption or
below £150,000 and the deceased had a foreign domicile.

Property Valuations

If the deceased owned a property we would recommend you obtain two or three estate agents valuations and use the average figure.

However for estates where inheritance tax is due or the value is close to the threshold we recommend you pay for a chartered surveyor to do a valuation report.

You should include any outstanding mortgage as a deduction against the property value.

Consider Gifts

Don’t forget to find out what gifts were made by the deceased in the seven years before death.

Sometimes the tax office will ask to see bank statements for that period so it is worthwhile checking these yourself to look for any large capital withdrawals or payments that could be gifts.

Pensions

There will usually be overpayments or underpayments of pensions after the date of death.

These will need to be included in the estate valuation as either an asset if it’s an underpayment or a liability if it’s an overpayment.

Outstanding Bills

Similarly there might be bills that come in after death that relate to the time before, such as utility bills, or refunds for payments made in advance such as gym membership fees.

These sums must also be adjusted in the estate valuation figure.

Funeral Expenses

Funeral expenses are a tax allowable deduction from the estate.

On top of the usual funeral directors’ costs you can also include costs of the wake, flowers and a headstone.

Chattels

You will need to put a value on the deceased’s chattels, that is their clothing, jewellery, furniture, motor vehicle etc..

Don’t be tempted to say their chattels are worthless, as omitting a figure from the inheritance tax forms could indicate to the tax man that you have not taken sufficient care with your figure work.

Also, we recommend you check the household insurance policy to see if any items are specified.

If they are you will need to include them at the specified value or get a professional valuation if you want to use a different value.

Business Involvement

If the deceased had a business, was a member of a partnership or owned shares in a small company you will need to value that asset.

It will often be worth involving a professional, such as the accountant who deals with the business, to do a formal valuation for you.

For owner managed companies you will need to see if there was a loan account, and if so any amounts owed to or from the deceased need to be included in the estate valuation.

Check Reliefs

Don’t forget to claim any reliefs that are available.

This could be

Spousal exemption if all or some of the estate is left to the spouse or civil partner,
Charitable donations,
Business relief for trading businesses, shares or assets,
Agricultural relief for farm assets,
Woodlands relief,
Successive charge relief if the deceased themselves inherited from an estate that paid IHT within five years of their death.

Your Probate Application

This list is not exhaustive by any means, but we hope it’s a useful starting point if you are embarking on the probate process and need a bit of guidance.

If you would like professional assistance with a probate application contact Jan Friend who will be happy to help you.

If you are looking for a caring and efficient services then please contact us.