Probate Delays Crisis – What Do You Need to Know?
Recent News – The Probate Registry
Previously where a Grant was required, the Probate Registry had been taking up to 8 weeks to respond to applications. However, in recent news, the Probate Registry have confirmed that their timescales have now increased, currently to 16 weeks. In some cases, and usually more complicated estates, this timescale has been exceeded. For information on Probate and what this means, please see our blog “Probate – What is it and What is my Role?”
Staff cuts have been blamed for the delays discussed, including a reduction in staff from 183 to 122 and a reduction in senior executive officers from 12 to 1 between 2021/22 and whilst a new recruitment drive has recently increased staff numbers, the lack of experienced personnel and the need for extensive training have resulted in ongoing extensions to the application deadline.
Impact on Estate Administration and Families
The process of obtaining the all-important Grant, has therefore lengthened estate administration for many estates and has resulted in complications for families following the death of a loved one. This delay prevents bereaved families from obtaining the closure they need and can lead to accruing interest on outstanding Inheritance Tax. Moreover, due to the current cost of living crisis, there is a risk of falling share prices or lower achievable property valuations.
Understanding the Probate Process
So how long does Probate actually take?
Where our professionals have been appointed in relation to an estate administration, the following process applies:
- Initial Appointment and Gathering Information:
– Registering the death, obtaining the death certificate, and locating the will (if available).
– Discussing the estate and its details with a solicitor, including assets, debts, and beneficiaries.
– Exploring available searches to fill in any information gaps.
– Providing information on any gifts made by the deceased in the last 7 years.
- Determining Required Services:
– Choosing between a “Grant Only” service (application for the Grant and tax rebate) or a “Full Administration” service (delegating estate administration to the solicitor).
– Depending on the chosen service, the subsequent steps will differ.
- Asset and Debt Collection (Grant Only Service):
– Executors/Administrators are responsible for gathering information on assets and debts within the estate.
– Contacting institutions such as banks to obtain “Date of Death” balances.
– Instructing estate agents for property valuations.
– Providing all collected information to the solicitor for the Grant application and Inheritance Tax return.
- Asset and Debt Collection (Full Administration Service):
– Solicitors utilise provided details to contact institutions and gather necessary information.
– Conducting an Assets and Liabilities search to supplement limited estate information.
– Obtaining “Date of Death” balances from institutions, which can be time consuming due to response times.
- Inheritance Tax Calculation and Payment:
– Completing an Inheritance Tax calculation considering the current Nil Rate Band (£325,000) and applicable reliefs/exemptions.
– Filing HMRC tax forms and paying any Inheritance Tax due.
– Completing the Probate application with a sworn declaration, which is then submitted to the Probate Registry.
- Grant Approval and Distribution:
– The Probate Registry reviews the application within the current 16-week timescale.
– Further information may be requested, or the application may be approved, resulting in the issuance of a Grant.
– Grants include Grant of Probate (if a will exists) or Grant of Letters of Administration (if no will exists).
– Grant of Letters of Administration with will annexed is an option when the appointed executor is unable or unwilling to act.
– For “Grant Only” service, the solicitor provides copies of the Grant for the client to complete estate administration and asset distribution.
– For “Full Administration” service, the solicitor retains the Grant and continues collecting assets, settling expenses, debts, and taxes. The remaining funds accrue interest until distribution to beneficiaries. At this stage, clients can discuss varying the will or passing assets to more needy beneficiaries with the solicitor.
- Reporting to HMRC and Final Distribution:
– The solicitor reports the accrued and received income throughout the estate administration to HMRC.
– HMRC may request Income Tax payment, typically not applicable for income below £500.
– HMRC response time to such reports can vary but may take up to 4 months.
– After receiving a response from HMRC, the remaining estate funds are distributed to beneficiaries based on the will or intestacy rules.
Estates’ Completion Timeline and Further Assistance
Estates generally take up to 2 years to complete, but this duration can vary depending on the complexity of assets and potential estate claims. Simple estates may conclude sooner, while complicated estates or legal challenges can extend the timeline. Solicitors can provide estimations of likely timescales and costs upon receiving detailed estate information. If complications arise during the estate administration process, the solicitor will keep you up-to-date with any new/extended timescale estimates.
At Ridley & Hall, we have experienced Wills & Probate solicitors available to offer professional legal advice and support throughout the Probate process. Additionally, our specialised team can address any claims or contentious issues that may arise during estate administration. Contact our friendly and approachable team for further information or to arrange an appointment.
Sophie Aldridge – Trainee Solicitor
