The term probate refers to the legal process whereby the estate of a deceased person is administered. A probate property refers to that part of the estate which comprises the deceased person’s property.
The sale of a probate property is usually more complicated than the sale of a non probate property. Before a probate property can be sold the will must be found. The will identifies the executors and the beneficiaries. The executors need to apply and obtain what is known as Grant of Probate before they can legally sell the property. It is often the case that the beneficiaries and the executors are not the same people. At times they may not share the same priorities!
If someone dies without a will they have died intestate. This is a situation which can complicate the process. The beneficiaries are easily identified using the rules of intestacy. The estate however needs to be administered by next of kin. They will need to obtain what is known as letters of administration before the property can be sold. If there is no next of kin the estate will revert to the crown estate.
Inheritance tax is due on estates worth over £325,000. It needs to be paid by the end of the sixth month after the person has died. If you are late making the payment then interest becomes due.
If you are involved in the sale of a probate property you may find it more convenient to use our quick property buying service. Our service is quick, efficient and convenient. The service is especially convenient if you do not live locally. It is ideal where the beneficiaries need to obtain the proceeds of the sale quickly.
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Dealing with probate properties can be a daunting task, especially when you’re unfamiliar with the process. If you’ve been left a property in someone’s will and are eventually looking to sell it, here’s a beginner’s guide to help you get to grips with what’s involved with probate properties.
What does probate mean?
Probate is the name of the legal process that you need to go through if you inherit property from someone who has died (unless you are a spouse or civil partner). The house, along with all the assets of the deceased person, have to be valued in order to validate their will.
At the end of the process, a Grant of Probate will be issued and, at that point, you’re able to sell the property if you wish. The process helps to establish the legal chain of ownership of the property and until the grant is formerly issued, the property has to remain in limbo.
There can be many reasons why you may want to sell a probate property. Perhaps it was recently inherited and you have no use for a second home. Or, you might need a probate property sale in order to share the proceeds around a number of family members. Either way, a probate property sale, like many other property proceedings, can be a bit confusing if it is not approached in the correct manner. What initial steps need to be taken? What documents will you need to have ready? How can you form a checklist to make sure that you are prepared well in advance? Let’s address all of these questions in more detail so that you can start off on the right foot.
What are the things you should look out for if you need to sell a probate property? Maybe you’ve inherited a property from a relative or perhaps you’re acting as the executor of a will. In either of these cases, it’s likely that you’ll need a Grant of Probate before you can sell. There are a number of problems that can occur along the way. So, what are the most frustrating situations associated with a probate sale? More importantly, how can they be avoided or at the very least streamlined?
If you need to sell a property after the owner has passed away, you will probably need to apply for Probate. This gives you the legal right to deal with the property of a deceased person, called a “grant of representation”. It’s important that you understand how to apply for probate to ensure things go smoothly. You need to watch out for all legal steps that must be taken. So, let’s take a closer look to try and simplify things a bit.
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.
Those who are looking to sell a house quickly in London and the surrounding areas are likely to encounter a handful of issues. First, the market is anything but forgiving. Asking prices may be difficult to achieve and we should never forget about the logistics tied up with estate agents. In fact, many authoritative sites point out that these agents are more interested in the listing and the sale; less concerned with the ultimate price provided to the customer. Therefore, it becomes clear that selling a property of someone who is recently deceased can present even more of a challenge.
Generally speaking the largest asset in an estate is the property. It is often the most controversial part of dealing with the estate.
Inheriting a property, or part of it, should be a welcome piece of financial news in the current or indeed any economic climate.
However, the current credit crunch and the slowing down of the property market has increased the stress on families as they face the prospect of paying all the inheritance tax (IHT) due on an estate BEFORE the house is sold.