Selling a Probate Property
Are you dealing with a probate property? If you’re new to managing a probate sale, you’re likely to have a few questions. The probate sale process can be difficult to understand, but we’re here to simplify it for you. To find out more about probate sales in the UK, continue reading.
What is a Probate Sale?
A probate sale is the process of selling a deceased person's property. It's down to the executor (or the administrator if a Will doesn’t exist) to manage the probate sale. Only an executor or administrator can handle the probate sale, and they must be granted permission beforehand by applying for probate through the Probate Registry.
Can You Sell a Property Before Probate is Granted?
No, you cannot legally sell a deceased's property until probate is granted. While it may be possible to begin organising the property sale or putting it on the market, you can’t legally transfer ownership until your probate application has gone through.
We understand that you may feel authoritative in this circumstance and want to kickstart the process, but it's important to obey the set rules and wait until after probate is granted.
Paying Inheritance Tax on Probate Property
If your loved one's estate exceeds the threshold of £325,000, you will likely have to pay Inheritance Tax. Inheritance Tax must be paid before probate is granted, and it applies to all assets, not just property.
Do You Have to Sell Probate Property?
No, you don’t have to sell probate property. If the deceased has left a property to you directly and you’ve been granted probate, it’s up to you to sell it or not. Sometimes, a Will instructs that the property is to be sold and the funds split between beneficiaries.
But, in some cases, multiple beneficiaries can agree for just one of them to have ownership, meaning the property doesn’t necessarily have to be sold. While it may seem easy to manage probate property, issues can arise. If the deceased has unpaid debts or taxes, you’ll be forced to sell the property regardless and use the cash to pay off what’s owed in the deceased's name.
Does a Probate Sale Take Longer?
Yes, probate sales tend to take longer than your average property sale in the UK. This is mostly due to the prolonged process that comes with probate applications. The process of applying for probate and waiting for it to be granted before selling a property can take several weeks, with potential delays if additional information is required.
Once probate is complete, you will have to manage the actual probate sale itself and other factors that come along with it. To avoid delays with a probate sale, it is recommended that the property not be marketed for sale until probate has been granted.
The Stages of Probate Sale: Start to Finish
Understanding the full process of probate sale can be confusing, but we’re here to help. Let’s take a look at the stages from the deceased's passing to property sale completion, giving you an idea of everything the process entails.
- Register the deceased's death
- Inform banks and other government bodies of the death
- Value any assets belonging to the deceased, including property
- Calculate whether or not Inheritance Tax is due and how much
- Apply for the Grant of Probate through the probate registry
- Wait up to 12 weeks or more to be granted probate
- Collect the assets and attend to the payment of any debts, administration expenses and taxes
- Prepare the deceased's property for sale if you wish to sell
- Put the property on the market
- Negotiate and accept offers to begin the conveyancing process
- Complete the probate sale
- Distribute funds from the property if necessary and pay any outstanding property debts off
- Prepare estate accounts
- Distribute any other assets in the estate
Does it Cost More to Sell a Probate Property?
Selling a probate property can be slightly more expensive than selling a regular home. However, this isn't because it's a deceased person's home - the increase in costs comes with the additional expenses you must pay as part of the probate process, such as application fees.
Key Takeaways
- A probate sale is the process of selling a deceased person's property
- Probate sales tend to take longer than your average property sale
- You cannot legally sell a probate property until probate is granted
Expert Services While You Sell a Probate Property
For expert support, guidance, and advice when it comes to probate, we can help. At Bell Lamb & Joynson, we have over 200 years of experience. We know that probate can be difficult to deal with, especially probate sales. Rest assured that our dedicated probate solicitors are on hand to help when it comes to selling probate property.
Contact our helpful team today if you have any questions regarding our services.