Inside Probate - What You Need To Know

Whether you are planning for the future or settling an estate now, you need to know about probate. Probate is the process of settling your financial affairs after death. It is also the name of the legal document issued that permits people to settle these affairs. Most people think of probate as a hassle which will cost them more than they can afford, but the truth is that getting probate can be simple and straightforward.

The Probate Document

The probate document is called a grant of representation and it is issued by the Probate Registry. There are three types of grant of representation. The one that applies to your estate depends on whether you have made a Will and how that Will was made. If you have made a valid Will and named an executor, then the Probate Registry will grant probate to one of your executors. If you have made a Will, but not named executors, then the Probate Registry issues letters of administration. Letters of administration are also issued where the Will is invalid or there is no Will. The purpose of the grant is to allow the executor (or person named in letters of administration) to collect money on behalf of your estate.

Who Gets The Grant?

There are rules governing who is entitled to a grant of probate in different circumstances. If there is a valid Will, the executors are the first people entitled to a grant of probate. If there are no executors or they do not wish to act, then the person who gets the bulk of the estate is entitled to the grant. If there is no valid will, then the next of kin (provided they are over 18) may apply for the grant, in this order: spouse, children, parents, siblings or more distant relatives.

Assessing The Estate

Before applying for the grant, the executor needs to assess your estate. They will include any property you own, your share in any jointly owned property, the value of life insurance policies, retirement plans, trusts, annuities and a wide range of household items. All of these together are known as your probate estate. There is also an application form to be completed and the person who holds the grant must attend an interview. All taxes on the estate must be paid before a grant can be issued. Once this is done, the responsibility for settling the rest of the estate passes to the executor or grant holder.