Are you prepared for the probate process?
Families and friends can face daunting challenges during the probate process, according to research recently carried out by The Estate Registry.
While we might expect that there are well-oiled systems to help us through the probate system, this is generally not the case. Those seeking probate today are likely to be challenged by issues such as:
- Lengthy delays: The process often takes longer than expected, with an average of 10 months from notification to settlement, and over a year for complex cases.
- Complex paperwork: Many consumers find the administrative burden overwhelming, with forms and procedures being difficult to understand and prone to errors.
- Lack of information: Difficulty accessing details about the deceased, such as account information and passwords, adds to the complexity.
- Financial strain: Delays in receiving inheritance funds can lead to financial stress, especially when consumers need to pay inheritance tax (IHT) before probate is granted. This often forces them to use personal savings, borrow money, or take loans.
- Inconsistent support: Private companies, such as banks and utility providers, often lack dedicated bereavement teams, leading to frustrating and time-consuming interactions.
- Limited awareness: Many consumers are unaware of the probate process, inheritance tax requirements, and available support services, which can lead to confusion and delays.
- Accessibility issues: While digital tools like the ‘Tell Us Once’ service are helpful, they may not be accessible to older individuals or those unfamiliar with technology.
- Property challenges: Consumers inheriting property often face additional complications, such as paying significant tax bills or being unable to sell the property without a grant of probate.
The report argues that these challenges highlight the need for better support, simplified processes, and systemic reforms to ease the burden on bereaved individuals.
How can you prepare for the probate process?
Given the challenges in the current system, gaining probate is unlikely to be as straightforward as we might all hope.
You can start to prepare for the probate process by taking the following steps:
- Understand the process: Educate yourself about what probate entails, including whether it is required, how to apply, and the potential costs involved.
- Organise documents: Gather all necessary paperwork related to the deceased, such as wills, financial records, account details, property deeds, and any other relevant documents.
- Use available services: Utilise government tools like the ‘Tell Us Once’ service to streamline notifications to government departments. Research private sector services like NotifyNOW or Settld for notifying private companies.
- Seek professional advice: Consider consulting a probate solicitor or financial advisor to understand inheritance tax liabilities, capital gains, and other financial implications.
- Plan for financial needs: Be prepared for potential delays in accessing inheritance funds. Explore options like inheritance loans or payment plans for settling inheritance tax if needed.
- Legacy planning: Use legacy planning tools to organise your own estate and ensure your loved ones have clear instructions and access to necessary information.
- Communicate with service providers: Notify banks, utility companies, and other organisations promptly. Check if they have bereavement teams to assist with the process.
- Be patient and persistent: Understand that the process can take time, especially for complex estates. Be prepared to follow up with organisations and government departments as needed.
By taking these steps, you may be able to reduce stress and navigate the probate process more efficiently. Recognising that the path is unlikely to be fast or straightforward is a good place to start.
Photo by Glenn Carstens-Peters on Unsplash