It’s never too soon to protect your future
Writing a will is so much more than a dry legal task. It’s an opportunity to ensure your wishes are clear and that your loved ones will be looked after, no matter what your age is right now.
A guide to probate
Understanding Probate: What is it and when is it needed?
Probate is a term often used for the legal process of dealing with someone’s money, property and belongings after they die. Together, these are called their estate.
This usually involves getting legal authority to deal with the estate, paying debts and tax, and sharing what is left with the people who inherit.
What the Life100+ research tells us
Probate happens after someone dies. But clear plans can make things easier for the people left behind.
- 39% of people had written a will.
- Only 20% had discussed how to find important documents, such as a will.
- Only 21% had discussed who would act as executor.
- Almost a third of people who have lost a parent (31%) wish they'd talked more about their financial plans. They found it too hard at the time.
Making a will is important. It can also help to tell someone where it is kept and who you want to deal with your estate.
What is probate?
Probate is the process of sorting out someone’s estate after they die.
The person dealing with the estate may need legal authority before they can access bank accounts, sell property or share out money.
They may also need to pay debts, bills and tax before giving anything to the people who inherit.
When might probate be needed?
Probate may be needed when someone dies and leaves assets in their sole name. This could include:
- a home or other property
- savings or bank accounts
- shares and investments
- other valuable assets
Probate may not be needed if the estate is small or if all assets were owned jointly. Jointly owned assets may pass to the surviving owner in some circumstances.
Banks, building societies and other organisations have their own rules. Check with them before applying for probate.
Who deals with the estate?
If there is a will, it should name one or more people to deal with the estate. They are often called executors.
If there is no will, a close family member may be able to apply to deal with the estate. They are often called administrators.
The name of the legal authority needed can differ across the UK. A solicitor or probate specialist can explain the rules that apply where you live.
What if there is no will?
If someone dies without leaving a valid will, the law decides who can inherit from their estate.
The rules can differ across the UK. This may not be the same as what the person wanted.
Legal advice may be helpful if it is not clear who should deal with the estate or who should inherit.
What happens during probate?
Dealing with someone’s estate can feel overwhelming, especially when you are grieving. You do not need to do everything at once, and you can ask for help if you need it.
Probate can involve several tasks. The exact steps depend on the estate and the assets involved.
The person dealing with the estate may need to:
- Find the will and other important documents.
- Tell banks, pension providers, insurers and other organisations about the death.
- Make a list of the person’s money, property, belongings and debts.
- Work out the value of the estate.
- Apply for legal authority to deal with the estate, if needed.
- Collect money and sell assets, if needed.
- Pay debts, tax and other costs.
- Share what is left with the people who inherit.
Make sure to keep a record of money paid into or out of the estate.
What tax might need to be paid?
The person dealing with the estate may need to pay tax before the estate is shared.
This can include:
- Inheritance Tax, if the estate is above the available tax-free allowances. Read our guide to Inheritance Tax
- Income Tax on money earned after the person died, such as rent or interest
- Capital Gains Tax if an asset increases in value before it is sold. Read our guide to Capital Gains Tax
How long does probate take?
Every estate is different. Probate can take several months and may take longer if there is property to sell, tax to pay, overseas assets or a disagreement about the will.
It is important not to share the estate too soon. Debts, tax and other costs must be dealt with first.
Planning ahead can make things easier
Making plans now can make things simpler for the people you leave behind.
Can you get help to make a will?
Having a will can make clear who should deal with your estate and who you want to inherit.
Free Wills Month is a charity campaign that may help you make or update a simple will at no cost. It is usually available to people aged 55 and over, in selected areas and at certain times of year.
Participating solicitors write the will, and charities cover the cost. You do not have to leave money to a charity in your will. However, the campaign hopes that people who can afford to will consider leaving a gift.
Free Wills Month may not be right for everyone. You may need extra advice if you have a trust, a business, overseas assets or a blended family.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney lets you choose someone you trust to make decisions for you if you cannot make them yourself.
It can help with decisions about your money, property, health and care whilst you are alive.
A Lasting Power of Attorney cannot be used after someone dies. The executor or administrator deals with the estate instead.
You do not have to deal with probate alone.
Legal, tax or financial support may be useful if:
- there is no will
- the estate includes property, a business or overseas assets
- Inheritance Tax may be due
- there is a trust
- there is a family disagreement
- you are unsure about your responsibilities.
A solicitor or probate specialist can help with the legal process.
A regulated financial adviser can help beneficiaries understand what to do with inherited money, investments or pension benefits.
If someone has died and you have been asked to deal with their estate, start by finding their will and making a list of their assets, debts and important documents.
If the estate is complex, the best next step is to speak to a solicitor or probate specialist. If you inherit money or investments, consider speaking to a regulated financial adviser before making decisions.
If you are planning ahead, making a will is one of the most helpful things you can do for the people you care about. A will can make clear:
- who should deal with your estate
- who you want to inherit
- where your important documents can be found
Keep your will up to date, especially after a major life change, such as getting married, divorced, having children or buying a home.
Find a financial adviser
Financial advice is not only for people with significant wealth or those ready to make a large gift. An adviser can help you understand your options, consider the needs of the wider family, and create a plan that can adapt as circumstances change.
Important information
This information is intended as a general guide only and is not personal financial, legal or tax advice. Consider taking appropriate financial, legal or tax advice before making decisions about retirement, savings, investments, gifting, inheritance, estate planning or family support.