A grant of probate is a legal document often required by executors if a person has died and left a will. The executors are the persons who have been appointed in the will to carry out the wishes of the person who has died.
People often think that when there is a will a grant of probate is not required. However, one in two people who have left a will need a grant of probate. The need for a grant of probate does not depend on whether there is a will. It depends on the financial situation of the person who has died. If, for example, they own a home in their sole name or have high value assets then a grant of probate will be required.
The grant of probate provides the executors with the legal authority to look after the estate of the deceased person.
When someone dies, their banks, building societies and other financial institutions with whom they held money will need to be notified of the death. They may require a grant of probate before an account can be closed. They will base their decision on the amount of money held by the bank, building society or financial institution and sometimes by the amount of money and property held generally in the estate. They may also consider other circumstances for example the contents of the will and the nature of the executor appointment and family situation. Ultimately it is at their discretion to decide whether a grant of probate is needed. They always reserve the right to ask for a grant of probate even if the deceased person held a relatively small amount of money with the institution. The thresholds of the institutions range between £5,000 and £50,000.
You will not normally need a grant of probate if all assets are held by the deceased jointly with another person. This is because jointly held assets pass to the surviving joint owner by virtue of the right of survivorship. The only exception would be if the assets were held jointly as a tenant in common rather than jointly as joint tenants.
If you do need to apply for a grant of probate then it is the responsibility of the executors to locate all assets including shares, digital assets and foreign assets. The executors must have those assets valued and identify all debts and liabilities of the deceased so that they may settle these when a grant of probate is received. The executors must calculate any inheritance tax that is due. The executors must locate and contact all beneficiaries. They must sell or cash the various investments and assets and distribute the estate in line with the will.
The executors may ask a solicitor to act on their behalf in carrying out some or all of the above tasks. Those solicitors will take on responsibility for the tasks and may complete the tax, legal and administrative work on behalf of the executors. Executors sometimes like to ask a solicitor to do this as it relieves them of some of the burdens and responsibilities.
If a person dies without leaving a will then sometimes their next of kin (as defined by the law) will need to obtain a grant of letters of administration rather than a grant of probate. You readers of course have all made wills so you do not need to worry about this! In any event I shall reserve discussion of letters of administration until another day.