Good advice on probate as applications for it increase

RESEARCH by probate brokers Final Duties, shows that the start of the year is the busiest time for probate applications, as thousands more are made during the first three months when compared to the rest of the year. With this in mind, it has produced a guide to probate, including what it is, how much it should cost, and how long it will take.

Probate refers to the legal and financial process of dealing with the estate, which can include property, money, and possessions of a person who has died.

If the estate is worth more than £5,000 or includes investments such as property, stocks or shares, it’s likely that probate will be legally required before the estate can be distributed as per the wishes of the deceased.

The probate process can cost a significant amount of money. Typically, a solicitor or specialist probate provider will charge a fee of between one and five per cent of the estate’s value, plus VAT.

There will be further expenses if, for example, the estate is liable for inheritance tax. All in all, the average cost of probate comes in at an estimated £5,402. The reason for the expense is the complexity that so often comes with the process. It requires expertise, an awful lot of admin and an understanding that there will probably be significant delays along the way.

It’s impossible to predict how long probate will take as so much of it is dependent on the amount of time the executor is able to spend on the process. If they can only do a few hours a week after work, it’s going to take longer than if someone is working on it full-time.

For this reason alone, many people choose to appoint a probate specialist rather than trying to handle it all on their own.

Another common delaying factor is property. While cash and other physical assets such as cars or jewellery are relatively straightforward, property is a different matter and selling it can take months on end. Probate can not end until the transaction is finalised. Disputes can also draw out the probate process, sometimes for years on end. So if there is anything at all contentious about the case and multiple parties start arguing over who gets what, it is going to vastly increase the timeline and costs.

There are also human errors to consider. For example, if there are missing supporting documents or applications are submitted at the wrong time, it can not only delay the process but even bring it to a complete standstill.

All in all, probate can be expected to take 10-12 months to complete. This includes up to 12 weeks to establish the estate and its contents; eight weeks to arrange finances and pay inheritance tax; up to 12 weeks for the probate application to process; another eight-12 weeks to realise and pay liabilities and then another 12 weeks to tie up all of the loose ends.

With the expected cost at £5,402, this works out at a probate expense of £540 per month, though some probate specialists also operate a fixed-fee model. Jack Gill, managing director of www/finalduties. co.uk, which has fixed fees, says: “Traditionally, the new year is the busiest time of year for new probate applications and this is a trend that has intensified. The thing that catches most people out is the complexity of the probate process. It is a long, arduous journey full of pitfalls.”