Were you aware that, in the event of your death, High Street banks can impose charges on your estate? Bereaved family members will be the ones to suffer should this happen, losing out on inheritance that you wanted to pass
to them.
Banks impose charges on assessing taxes, checking Wills and even on paying beneficiaries who have been named as executors. Probate work is usually subcontracted out to law firms, who charge their own fees which impact upon
the estate of the deceased.
In one example (published in a major newspaper), a customer of the Woolwich (a subsidiary of Barclays) died leaving a £450,000 estate. The deceased man’s wife subsequently discovered that over £18,000 (plus VAT) was being
demanded in fees by a law firm under their agreement with the bank. The deceased man’s family tried to instruct another firm of lawyers but were not given permission to do so.
One way to get around the possibility of this happening to your family is to consider instructing a probate specialist, who will charge set fees regardless of the size of the estate. Estate Legacy Services are probate specialists and will be happy to explain the benefits of their work to you.
How probate will come into effect after death
The procedure of probate (governed by The Administration of Estates Act 1965) has to be followed after a person’s death. A grant is required before an executor has the right to administer the deceased person’s estate according to their wishes. This grant is applied for through the Probate Registry and given by the High Court (Family Division). To find your local Probate Registry visit www.hmcourt-service.gov and download the form PA4.
Were you aware that there are three different types of grant which can be given the the High Court? Which one is granted depends on whether or not the deceased died leaving a valid Will. The three grants are:
1: A grant of Probate: obtained if the deceased left a valid Will
2: A Letter of Administration with Will annexed: granted if there is a valid Will yet:
(i) An executor has not been appointed
(ii) A minor has been appointed as executor
(iii) The sole (surviving) executor has predeceased the testator
(iv) The executor has renounced his appointment
(v) There is a partial intestacy
3: Letters of Administration: required if the deceased died intestate
Executors (or personal representatives) have two years after your death to administer your estate. Once the grant has been given, executors will first need to collect your assets, before paying all debts on the estate. It the estate is solvent, they can then distribute the remaining estate in line with your Will (or intestacy rules).
Your spouse, children and relatives will be closely involved in the administration of your estate when you die. Hopefully this explains how they’ll be involved, and what will be expected of them. The best thing you can do for them is to make a clear, valid Will setting out your wishes. That will help your nearest and dearest immensely when the time comes.
photo credit http://www.flickr.com/photos/rocketstone/260048846/sizes/t/
