Obtaining the grant of probate can feel like the end of the probate process, but in truth it is just the start. If you are asking what happens after probate is granted, the answer is that the real work of administering the estate now begins, because the grant is simply the legal authority that allows you to administer the estate. This article sets out the steps that follow, from collecting in the assets to making the final distribution, so you know what lies ahead as an executor or administrator.
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In Practical Terms, What Happens After Probate Is Granted?
The grant of representation is the document that institutions usually want to see before they will release the deceased person’s assets to the executor or administrator. Once it is issued, banks, building societies, pension providers, share registrars, and the Land Registry will deal with you, because the grant proves you have the legal authority to act. Until that point, most organisations will not release funds or transfer assets, so a good deal of the administration can only properly begin once the grant is in hand.
It is sensible to obtain several sealed copies of the grant at the outset, so that different institutions can be dealt with at the same time rather than one after another.
How Do You Collect In The Assets?
The first task after the grant is to gather in everything the estate is owed. This means sending a copy of the grant to each bank, building society, and other institution, closing accounts and having the balances paid over, cashing in or transferring investments, and claiming any life policies or pensions due to the estate.
Where the estate includes a property, this is the stage at which it is either sold or transferred to a beneficiary. A sale takes time and runs alongside the other work, while a transfer requires an application to the Land Registry. Keeping a clear record of every sum received is essential, both for the accounts and to protect you as the person responsible.
How Are Debts And Liabilities Settled?
Before anything is paid to the beneficiaries, the estate’s debts must be settled. These can include an outstanding mortgage, credit cards, loans, utility bills, care fees and any income tax owed up to the date of death. Funeral costs are also paid from the estate.
Executors should be careful not to distribute the estate until they are confident all liabilities have been identified. One protection available is to place statutory notices for creditors, which give unknown creditors a period to come forward. Distributing only after that period has passed helps guard against a creditor emerging later and pursuing the executor personally.
What About Any Remaining Tax?
Inheritance tax will usually have been addressed in order to obtain the grant, but the tax position does not always end there. If further assets come to light, or valuations are adjusted, the inheritance tax figure may need to be corrected with HM Revenue and Customs.
There can also be other taxes to consider. Income received by the estate during the administration, or a gain made when an asset is sold for more than its value at the date of death, may give rise to income tax or capital gains tax for the estate. These need to be reported and settled before the administration is completed.
How Is The Estate Distributed To Beneficiaries?
Once the assets are gathered, the debts and tax are paid, and the position is clear, the estate can be distributed. Specific gifts left in the will are dealt with first, followed by the residue, which is what remains after everything else has been settled, divided among the residuary beneficiaries in the shares set out in the will or under the rules of intestacy.
Before making the final payments, it is good practice to prepare estate accounts. These show all the money received, everything paid out, and how the balance is to be divided, giving the beneficiaries a clear and transparent picture. Asking residuary beneficiaries to approve the accounts before distribution provides a further measure of protection for the executor.
How Long Does Estate Administration Take?
The time needed varies with the estate. A straightforward estate might be completed within a few months of the grant, while one involving a property sale, complex assets, or any dispute can take considerably longer. Selling a house, finalising the tax position and waiting out the creditor notice period are the factors that most often extend matters.
It is worth keeping the beneficiaries informed throughout. People are far more patient when they understand what is happening and why a particular step is taking time.
When Is It Safe To Consider The Estate Closed?
An administration is effectively complete once the assets have been collected, all debts and taxes have been paid, the accounts have been prepared and approved, and the estate has been distributed. Even then, it is wise to retain the records for a period, in case any query arises afterwards.
How Can Bartletts Solicitors Help?
Our wills and probate team can take on the administration after the grant, or support you with the parts you would rather not manage, such as selling a property, finalising the tax position or preparing the estate accounts. We keep you informed at each stage and make sure the estate is wound up correctly, so that you are protected as executor.
To speak to our experts please call us free of charge on 0800 988 3674 or Make A Free Online Enquiry.
