When an adult dies in England or Wales, their assets such as property, money and possessions must be realised or transferred, their debts settled and what's left paid to their beneficiaries. This process is known as administering the estate, or probate.
The probate and estate administration procedure differs depending on whether there’s a will or not. If a person dies without a valid will in place (known as dying intestate) the administration of the estate could become more complicated and take much longer. If there isn’t a will, the deceased's estate will be distributed according to the law, which might not align with their or their loved ones' wishes, potentially adding complexity to the process.
When There's No Will, the Law Decides Who Inherits
When someone dies without a valid will, the people who benefit from the estate are determined by inheritance rules called the rules of intestacy. These rules dictate who inherits and who can administer the estate.
Dealing with the estate administration without a will can be an involved and complex process, as a clear understanding of the family tree is essential. Intestacy rules don’t always accommodate modern family relationships, and certain relatives, such as stepchildren and unmarried partners, aren't recognised.
Due to the complexities of the rules of intestacy, handling the administration of the estate without a will can lead to a higher risk of mistakes in identifying estate administrators and beneficiaries. Estate administrators can be held personally and financially liable for any loss resulting from a breach of their duty, even if the errors were genuine.
Grant of Letters of Administration
When a grant of representation is needed to deal with an estate where there is no will, an application must be made to the court before the legal administration of the estate can begin. The person responsible for administering the estate is called the administrator, and they need to apply for a document called a grant of letters of administration.
What Are Letters of Administration?
A grant of letters of administration is a document issued by the probate registry, giving the administrator the legal authority to deal with the estate. Once this document has been received, the process of administering the estate can begin. Prior to the issue of the grant the administrator has no authority to act.
When Is a Grant of Letters of Administration Needed?
A grant of letters of administration isn’t always necessary; it depends on what the deceased owned. Some assets can be dealt with without a grant of letters of administration, and banks may release a certain amount of money without asking for this document. However, a grant of letters of administration is always needed to deal with property owned solely by the deceased or to handle large amounts of money. Without this document, access to the estate's assets is not possible, meaning bank accounts can’t be closed, and property can’t be sold.
How to Get a Letter of Administration
To apply for a letter of administration, you need details of everything the deceased owned (all of which will need to be valued) and details of their outstanding debts. This information is required to complete the Inheritance Tax return (if required) and calculate any tax payable to HM Revenue & Customs. It is necessary to make an application to the probate registry in order that the Grant of Letters of Administration can be issued. There is a court fee (currently £300) plus a charge of £1.50 per copy of the Grant.
What’s the Difference Between Letters of Administration and Grant of Probate?
The main difference is that a grant of probate is issued to the executor named in the will, while a grant of letters of administration is issued to the person entitled under the law to deal with the estate. Both documents provide the legal authority to administer the estate.
How Long Does It Take to Get a Grant of Letters of Administration?
The time required to obtain a grant of letters of administration can vary significantly depending on the complexity of the situation, the need for searches for a potential will, and the identification of the deceased's surviving relatives. If the deceased has a surviving spouse or civil partner, they will typically be the main beneficiary and administrator under the rules of intestacy, simplifying the process. However, if the deceased only has distant relatives who are hard to identify or locate, this can delay the process. Once the administrator is identified, they must identify the assets in the estate, arrange for them to be valued, determine whether Inheritance Tax is payable and then apply for the grant of letters of administration.
For further guidance on probate and estate administration, or to seek professional assistance, please contact Wyeth and Paul Law Associates. Our experienced team is here to help you navigate this challenging process with care and expertise.
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