What you need to know about diy probate
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What you need to know about DIY Probate For the first time ever, in 2011 the majority of probate grants went to individuals, rather than professionals. 56% of people personally applied without the help of a solicitor. If you’re considering DIY probate , here are some questions to ask yourself first. Do you have the time? While executors are entitled to financial compensation for their efforts (generally at 2.5% of the estate value), there is a very good reason for this. Probate can be lengthy and time consuming. In the case of complex estates, the process can go on for years. It involves lots of paperwork, form filling, following up and waiting. Your every action must be recorded and beneficiaries must be kept informed of your progress. Plus you have an obligation to administer the estate in a timely fashion. If you don’t think you can spare the time to fulfil your duties, it may be better to seek professional assistance. Do you have the personal skills? Conscientious, meticulous, thorough and patient are all good qualities for an executor. Administering an estate involves keeping a set of accounts, recording everything, adhering to deadlines, handling tax affairs and dealing with HMRC, and communicating with all beneficiaries. If you have been named in a will, the deceased perhaps chose you because of your personal qualities. However, if you have been named as representative according to intestacy law, you may not be suited to the task. There is no room for error, so consider your options carefully. Are you fully aware of the ramifications? Probate is a seriously legal responsibility and executors and representatives can be held personally liable for any mistakes made. If you miscalculate inheritance tax owed, incur unnecessary charges or the process takes too long, beneficiaries can hold you personally accountable. This can cause family rifts as well as financial losses. Many executors get in trouble due to incorrect property or personal chattel valuations. For example, perhaps the deceased owned a watch and you didn’t think it was worth anything. Then say it comes to light that the watch was actually an antique that was worth
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For the first time ever, in 2011 the majority of probate grants went to individuals, rather than professionals. 56% of people personally applied without the help of a solicitor. If you’re considering DIY probate, here are some questions to ask yourself first.
Transcript of What you need to know about diy probate
What you need to know about DIY Probate
For the first time ever, in 2011 the majority of probate grants went to individuals, rather than professionals. 56% of people personally applied without the help of a solicitor. If you’re considering DIY probate, here are some questions to ask yourself first.
Do you have the time?While executors are entitled to financial compensation for their efforts (generally at 2.5% of the estate value), there is a very good reason for this. Probate can be lengthy and time consuming. In the case of complex estates, the process can go on for years. It involves lots of paperwork, form filling, following up and waiting.
Your every action must be recorded and beneficiaries must be kept informed of your progress. Plus you have an obligation to administer the estate in a timely fashion. If you don’t think you can spare the time to fulfil your duties, it may be better to seek professional assistance.
Do you have the personal skills?Conscientious, meticulous, thorough and patient are all good qualities for an executor. Administering an estate involves keeping a set of accounts, recording everything, adhering to deadlines, handling tax affairs and dealing with HMRC, and communicating with all beneficiaries. If you have been named in a will, the deceased perhaps chose you because of your personal qualities. However, if you have been named as representative according to intestacy law, you may not be suited to the task. There is no room for error, so consider your options carefully.
Are you fully aware of the ramifications?Probate is a seriously legal responsibility and executors and representatives can be held personally liable for any mistakes made. If you miscalculate inheritance tax owed, incur unnecessary charges or the process takes too long, beneficiaries can hold you personally accountable. This can cause family rifts as well as financial losses.
Many executors get in trouble due to incorrect property or personal chattel valuations. For example, perhaps the deceased owned a watch and you didn’t think it was worth anything. Then say it comes to light that the watch was actually an antique that was worth thousands. Beneficiaries lose part of their entitlement due to your error and by law, you are liable.
Have you explored other options?You may have heard that DIY probate will save you a small fortune in probate fees. With so much bad press about how banks calculate rates, hidden extra charges and downright refusal to quote a fixed fee, it’s no surprise that many executors research this option.
Nevertheless there are still honest, fair companies out there. You may wish to try an independent practitioner rather than a bank or solicitor. They tend to offer cheaper, fixed rates for the same service. It’s worth taking the time to get a quote, you may be pleasantly surprised.
IWC Estate Planning & Management Ltd. are a specialist Will Writing and Probate Company offering nationwide coverage. The company provides 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
