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Wills & Probate – Frequently Asked Questions
JMS Solicitors based in Greater Manchester are here to provide you with information about all aspects of the law including Wills, Probate, Inheritance and Tax.
Wills
Why do I need a will?
You need a will if:
- You are in a marriage or a relationship. Your whole estate will not necessarily automatically pass to your spouse or partner upon death and depending on your circumstances, other members of the family could be entitled to make a claim against your estate
- You have children under the age of 18 the authorities may appoint a guardian you would not have chosen for them. You can use your Will to state YOUR wishes.
- You have assets in your name only. When you die your assets will be frozen until the completion of the administration of your estate, which could take months or even years and, could lead to financial difficulties for those your care about.
By having a will you can be assured that after your death your estate will be distributed in accordance with your wishes.If there is no will, JMS will be able to advise and assist on taking the appropriate course of action.
Probate
What is Probate?
A Grant of Probate is an order of the Court giving one or more people the authority to administer the Estate of the deceased in order to distribute the Estate to the beneficiaries.
When is Probate necessary?
Probate is needed when:
- The deceased has investments in their sole name such as Stocks, Shares or Insurance Policies. Financial institutions, banks, building societies typically holding such assets ask for a Grant of Probate to be produced before they will release funds.
- The deceased owned Property in their sole name and a Transfer of Property is required or it is to be sold.
Depending on your own circumstances, JMS offer various levels of assistance from giving advice on Probate, Inheritance Tax and Property transfer.
What happens to my house?
Joint assets
Where you and your partner have a joint legal interest in a property your share passes to them on your death. Where a property is owned by more than 2 owners, the death of one joint owner causes that share to pass equally to the remaining joint owners automatically (not withstanding what the Will says)
Joint assets are still subject to Inheritance Tax (IHT).
What happens to outstanding debt?
All debts (including loans to family members) must be identified.
All creditors must be informed in writing of the following:
- Full details of the executor or administrator
- when the Grant is expected to be issued
- when repayment is expected to be made.
Upon issue of the Grant the debt incurring interest will be repaid first and thereafter the frozen debt is repaid.
How is the estate distributed?
Once a Grant of Representation has been granted, all bank accounts have been closed, all property has been sold or transferred, all debts & taxes have been paid and the Estate Accounts have been made, then the estate may be Distributed to the Beneficiaries in accordance with the Will or intestacy rules (where there is no will in place)
If any Beneficiary is an undischarged Bankrupt it must be considered before funds are distributed to that beneficiary.
What is Capital Gain Tax?
There may be Capital Gains Tax arising during a person’s lifetime or the period of Administration of the estate.
Capital Gains Tax is where an asset valued at death (for example a property or shares) has increased in valued by the time of sale or disposal. However there are 'elections' which can be made (depending upon the asset involved) in order to mitigate such tax.
What is Inheritance Tax(IHT)?
Inheritance Tax is the tax that is paid on the deceased's 'estate'. This is everything the deceased owned at the time of their death, less what they owed. It's also sometimes payable on assets the deceased may have given away during their lifetime. Assets include things like property, possessions, money and investments.
Not everyone pays IHT and there are some exemptions, JMS will be able to advise you on this matter.
Rules of intestacy
For a consultation with one of our Wills and Probate solicitors please call us on Freephone 0800 781 7057. Alternative ways in which to contact us can be found on our contact page.