Why instruct a solicitor to help with a grant of representation?
In 2017, over 259,956 grants of representation were issued; this includes grants of probate, letters of administration and letters of administration with the will annexed. Applications can be made with the help of a specialist solicitor, or directly to the Probate Registry. Some banks can also offer probate and estate administration services but tend to cost more than using a solicitor. Navigating grants of representation can be tricky, so what are the benefits of using a specialist solicitor to assist you?
Dealing with bereavement can be challenging. As an executor you may find yourself with the onerous and stressful task of having to sort out the estate of a family member or friend while you are grieving. This can involve arranging the funeral, going through personal papers to notify banks, building societies, utility providers, and ultimately dealing with other family members and beneficiaries. Much of this has to be dealt with, before you even begin to navigate the forms required to apply for a grant of probate (or grant of representation).
Inheritance tax hit a record height of £5.2 billion in 2018 (according to statistics published by HM Revenue and Customs). The total number of estates liable for inheritance tax has risen every year since 2009/10. The duty to pay inheritance tax can be a complicated process of valuing the assets, applying available exemptions, filling in a lengthy return, assessing what tax is due and then arranging payment of the tax. An error could result in the executors being personally liable for penalties which could be as much as 100% of the tax due. It is therefore essential that an accurate IHT return is submitted in time and the correct amount of tax paid.
The new residence nil-rate band is forecast to reduce inheritance tax receipts for the Treasury by around £1.5bn in 2020/21 (The Office for Budget Responsibility). This, when coupled with the nil-rate band (£325,000 per person), will enable couples to potentially pass on £1m without incurring inheritance tax liabilities. Instructing a solicitor means they can work with you to ensure that all potential reliefs and allowances are claimed to maximise the assets passed on to the beneficiaries, possibly with the benefit of ‘after the event’ planning such as a deed of variation.
A solicitor will be able to handle issues that may turn out to be more problematic than first thought, e.g. a dispute arises, the deceased died without a will, the estate involves property or assets outside of the UK, or the estate is bankrupt. There are many considerations to take into account, and there are many issues which may arise in the process. A solicitor can provide valuable advice in handling issues, such as advising a surviving spouse or civil partner about lifetime gifting, the benefits of a Lasting Power of Attorney and perhaps reviewing their own will. It’s helpful to discuss next steps with a professional who understands, which can alleviate some pressure during a very stressful time.
Solicitors are regulated by the Solicitors Regulation Authority and are required to maintain professional indemnity insurance cover, giving you comfort should things go wrong. When choosing a solicitor, it is worth looking out for those who are members of specialist organisations such as Solicitors for the Elderly and STEP.