Do you need to obtain grant of probate?
If so, you are indeed not alone. Traditional sales methods tend to involve a lengthy amount of litigation alongside some decidedly confusing concepts that need to be understood. Let us take a look at how (and why) a probate functions and some of the associated tax implications that may also come into play.
When do you need grant of probate?
In most cases, any assets that are totalled at a value of more than £15,000 pounds will require something that is known as a Grant of Probate. There are actually a number of reasons why a probate could be required. Some of the most common are:
• To release a substantial amount of funds into your bank account.
• To sell a property or shares previously owned by the deceased.
• To claim insurance monies or a pension.
For the sake of this article, we will obviously be focusing upon a London home sale.
How to Apply for a Probate and the Costs
Assuming that there was no written will (as may be the case in the event of a sudden death), the administrator or executor supplies an application to the Probate Registry. Depending upon the size of the estate, the number of assets and the value of the property, this process can take anywhere between 6 and 12 weeks before the grant of probate is eventually granted.
If you are unsure whether or not a probate is required, it is always wise to perform an online check of the title deed to the property in question. This can be performed at the offical Land Registry website of the United Kingdom.
The cost of a probate is an obvious issue to address. Of course, this will naturally vary upon the complexity of the case as well as the solicitor that is chosen. General fees can range between £500 and £1,000 pounds while there is normally an additional court fee of £150 pounds.
Many individuals are bound to ask why a grant of probate would be required when they already possess a will. Although a will clearly illustrates the desires of the deceased, these desires are only recognised after the Probate Registry approves them. Then, the grant is issued. Such a process can simply be looked at as an official (and legal) recognition of the rights of the beneficiaries.
The Tax Implications Involved with a Grant of Probate
There are additional tax concerns that should always be address. First, we need to take into account the VAT that the solicitor or executor will charge. This will obviously add to the overall cost of the service when obtaining a grant of probate. The inheritance tax threshold is another major area that should be taken into account.
The current inheritance tax threshold within the United Kingdom stands at £325,000 pounds. The beneficiary of an estate will be obliged to pay the government 40 per cent of anything above this limit. However, note here that only 6 per cent is required if 10 per cent of the value of the estate is left to charity. Some allowances may be applicable but once again, these will depend upon the type of property and its value.
One final important point to note here is that those who are married (or in a civil partnership) and have been given joint ownership of an estate will only have to pay inheritance tax is the ultimate sale exceeds 650,000 pounds.
Molae Properties is on Your Side
If you are like most, these issues can appear to be quite confusing. There are also many times when a quick London home sale is required and you simply do not have the time to take months with such processes. Additionally, dealing with standard solicitors can be frustrating and there are many times when this will only add to the stress caused by taxes, grants of probate and similar concerns.
Molae Properties is very pleased to offer a streamlined process to anyone who is looking for a quick London home sale. We encourage you to take a look at our quick house sale process to appreciate what we have already accomplished for countless other individuals. Not only will we deal with issues such as a probate, but the lump sum that is quoted is exactly what you can expect to be paid after the sale is finalised. There are no hidden fees nor will you be forced to deal with lengthy solicitation processes.