DIY Probate: What You Need to Know Before Doing It Yourself
DIY probate can seem like a straightforward way to save money, but administering an estate comes with significant responsibilities. Here’s what you need to know before doing it yourself.
When someone dies, dealing with their estate can involve much more than many people initially think. Alongside grieving the loss of a loved one, executors may find themselves responsible for valuing assets, contacting banks and other organisations, dealing with inheritance tax, applying for probate and eventually distributing the estate to beneficiaries.
For some people, the natural question is: can I do probate myself?
The short answer is yes. It is possible to administer an estate without instructing a solicitor, and this is commonly referred to as DIY probate. For straightforward estates, some executors may feel comfortable managing the process themselves.
However, taking on probate also means taking responsibility for ensuring the estate is administered correctly. Before deciding to go at it alone, it is important to understand exactly what may be involved.
What is DIY probate?
DIY probate is when an executor or personal representative administers an estate without instructing a solicitor to deal with the process on their behalf.
People may choose this route for several reasons. They may want to save money on legal fees, feel like they are more in control of the process or simply believe that the estate is straightforward enough to manage themselves.
What can initially appear relatively simple, however, can become more complicated once you start gathering information about the deceased's assets, liabilities and financial affairs.
What does administering an estate actually involve?
Applying for a Grant of Probate can be an important part of the process, but administering an estate doesn't necessarily begin or end with obtaining the Grant.
Depending on the circumstances, an executor may need to:
- Obtain date-of-death valuations for the deceased's assets
- Establish whether there are any outstanding liabilities
- Contact banks, pension providers and other relevant organisations
- Identify and contact beneficiaries
- Deal with inheritance tax requirements where applicable
- Prepare and submit the probate application
- Collect in the assets belonging to the estate
- Pay outstanding liabilities
- Carry out appropriate identity and bankruptcy checks
- Prepare estate accounts
- Distribute the estate to the beneficiaries
Every estate is different, and additional steps may be required depending on the deceased's circumstances.
What are the risks of DIY probate?
Choosing to deal with probate yourself means you can save on legal fees, but it also places responsibility for the administration of the estate on you.
Some of the issues that can arise include:
Incorrect valuations
Executors may need to establish the value of property, savings, investments, possessions and other assets as at the date of death. Getting these valuations wrong can have significant consequences.
Undervaluing an estate could result in too little Inheritance Tax being paid, potentially leading to additional tax, interest or penalties from HMRC.
Overvaluing assets could result in the estate paying more tax than necessary. Incorrect valuations can also delay the administration of the estate, require information or tax returns to be corrected and, in some circumstances, leave the executor personally responsible for resolving mistakes.
Missing assets or liabilities
An executor needs to establish everything the deceased owned, as well as any money they owed. Missing an asset could mean that the value of the estate is calculated incorrectly, potentially affecting the Inheritance Tax position and requiring information already provided to HMRC or the Probate Registry to be corrected.
Missing a debt or liability can be particularly problematic if the estate has already been distributed to beneficiaries. Creditors may still be entitled to recover money owed to them, and an executor who has distributed the estate without properly dealing with its debts could potentially find themselves personally liable for unpaid amounts.
Previously unknown assets or liabilities can also mean estate accounts need to be amended, beneficiaries may need to be contacted again, further tax may become payable and the administration of the estate can take considerably longer to complete.
Inheritance tax issues
Where inheritance tax requirements apply, the appropriate information needs to be provided and any tax due dealt with correctly. Estates can become particularly complicated where there are different assets, gifts made during the deceased's lifetime or questions surrounding available exemptions and reliefs.
Delays
Probate already involves gathering information from a number of different organisations. Mistakes, missing documents or incorrect applications can create further delays at what is already a difficult time for a family.
Personal responsibility
Being an executor carries legal responsibilities. Ultimately, executors are responsible for administering the estate correctly and distributing assets to the right people.
This is one of the most important considerations when deciding whether DIY probate is right for you. It isn't simply a question of whether you can complete the paperwork yourself, but whether you are comfortable taking responsibility for the administration as a whole.
When might you want legal advice?
Not every estate will require the same level of legal support. However, there are circumstances where obtaining specialist advice can be incredibly valuable.
For example, you may want to speak to a solicitor where the estate is particularly large or complex, inheritance tax may be payable, there are difficulties identifying assets or beneficiaries, the Will is unclear, there is no Will, there are disagreements between family members or beneficiaries, or you simply don't feel confident dealing with the administration yourself.
You may also begin the process yourself and later decide that you need help. Seeking legal advice doesn't necessarily have to be the first step you take.
How can Bell Lamb & Joynson help?
At Bell Lamb & Joynson Solicitors, our experienced Wills and Probate team can support executors through the estate administration process.
We take the time to understand the estate and the individual circumstances involved before advising on the next steps.
Where we are instructed to deal with the administration of an estate, our team can assist with matters including obtaining asset valuations, establishing liabilities, contacting beneficiaries, preparing inheritance tax forms where applicable, preparing and submitting the probate application, collecting assets, paying outstanding liabilities, preparing estate accounts and attending to the distribution of the estate.
It means you don't have to spend hours trying to work out which forms you need, who you need to contact or what needs to happen next, while reducing the risk of mistakes that could lead to delays, unexpected costs, HMRC penalties or other complications later down the line.
Thinking about doing probate yourself?
DIY probate may be suitable for some estates, but it is important to understand the responsibility you are taking on before getting started.
If you are unsure about any aspect of administering an estate, our experienced team is here to help.
For every question, every form and every step, we're by your side.
Contact Bell Lamb & Joynson Solicitors today to speak to a member of our Wills and Probate team.
or email us at contact@bljsolicitors.co.uk