How Are Letters of Administration Different to Probate?

Letters of Administration are required to deal with a loved ones estate when they die intestate. A grant of probate is needed when a loved one dies with a Will in place.

The initial application for letters of administration and a grant of probate are similar. You will need to fill out

Probate form PA1 and pay the £105 administration fee, but you will also need to attend an interview at the Probate Registry.

Where a will is in place, the executors deal with the probate application and the estate but when a loved one dies intestate an administrator deals with the estate. There are strict rules on who can administer the estate and depending on what family the deceased has left behind the person who is entitled to do this is decided in the following order of importance:

Husband, wife or civil partner, but not common law partner. Adult children including adopted children but not step-children Parents Siblings Grandparents Uncles or aunts

The biggest difference between Letters of Administration and Probate is dealing with taxes and the distribution of finances. Inheritance tax thresholds are less favourable when someone dies intestate. Also the distribution of the estate is much different. The Administrator will need to work out exactly who is entitled to what portion of the estate, because there is no will specifying this.

The law has specific guidelines on the division of the will in such cases. But complications can arise, particularly if the benefactors include children under the age of 18, or if there is a common law spouse left behind.

An intestate will can cause family disagreements when some of the benefactors feel that they should have received more. Also a common law spouse may have been left with nothing, but if they relied on the deceased financially, they may also appeal against the distribution of the will.

Dealing with all this can be stressful, particularly when you are still grieving the loss of your loved one. This is why many people use a probate specialist to apply for letters of administration, and administer the estate. It takes a huge burden off the shoulders of relatives who have been left with the responsibility.

Once the probate specialist has applied for letters of administration on your behalf, they will deal with all aspects of the estate including accessing the deceased’s finances, chasing up debts, and paying bills. They will calculate who is entitled to benefit from the estate, according to the law and divide the proceeds of the estate accordingly. They will also calculate any taxes owing and pay those before distributing the proceeds of the estate.

Some people worry about the fees involved if they get someone to administer their loved ones estate on their behalf. But many probate specialists will agree a fixed cost before proceeding, and this will not need to be paid upfront, but can be paid from the estate. It is worth discussing this with a specialist before applying for letters of administration, as it can save you a lot of time and trouble as opposed to appointing a solicitor to work on your behalf, or administering the estate yourself.

IWC Estate Planning & Management Ltd. are a specialist Will Writing and Probate Company offering nationwide coverage. The company provides fixed fee probate services; rates are agreed with clients in advance. Probate fees are based on the work that has to be carried

out, rather than the estate value or at an hourly rate.

IWC are regulated by the Society of Will Writers and Estate Planning Practitioners and registered at Companies House. Their head office is located in Croydon, Surrey, with satellite office coverage across most of England. Follow us on Twitter @IWCLtd