The person or company named on the Grant of Probate is under an obligation to sell the probate property for the open market value. Therefore, if the property is sold for less than the full market price a beneficiary can look to the person named on the Grant for the difference in value. The estate agent and the potential buyers must be given a realistic timescale for obtaining the grant at the outset.
Non-taxable estate no Inheritance Tax due Around 6 weeks. Taxable estate Inheritance Tax is due Around 12 weeks. Urgent situations e. These are some documents you will need to give your solicitor for working out the value of the estate in order to apply for Grant of Probate.
The term 'Probate' refers to an official legal document which is sometimes needed to wind up the affairs of a deceased person. This document will be issued either to the Executors named in the Will or, if there is no Will, the closest family members, and it confirms their authority to administer the Estate.
The process of obtaining this document and using it to administer the Estate is commonly referred to as Probate. For ease, we will refer to a Grant of Probate throughout this article, but the same applies to a Grant of Letters of Administration. If the deceased owned a property in their sole name Probate will generally be needed before it can be sold or transferred.
If Probate is needed, the property can be put on the market and an offer can be accepted before the Grant of Probate has been obtained, but the sale won't be able to complete without the Grant. Although it is technically true that Executors can exchange contracts without the Grant of Probate, this is not best practice and is very rarely done.
We would always recommend obtaining the Grant of Probate prior to exchanging contracts. Exchanging contracts without Probate would only be possible on the basis that Probate is granted in time for completion, and this inevitably carries a high level of risk. There are two ways in which a property can be jointly owned; either as joint tenants or tenants in common.
The way in which the property is jointly owned will determine whether or not Probate is needed. When a property is owned as joint tenants, neither person owns a specific share of the property.
On one owner's death the property will automatically transfer into the name of the surviving owner. Probate is not required for this. Tenants in common own their house in separate percentage shares, and if one owner dies their share won't automatically pass to the survivor. Instead, it will form part of their estate and pass to those entitled to inherit it either in line with the terms of their Will if they made one or the Rules of Intestacy if they didn't.
Probate will likely be needed to deal with a property owned in this way. If you are a surviving tenant in common and you want to sell the property, seek advice from a professional Probate Specialist who can help ensure you are doing the right thing. Co-op Legal Services can help you if you have a house to sell and you need help with Probate. With our Probate Complete Service , we offer a complete Probate and Estate Administration service to take the stress out of the Probate process.
Contact us to make an appointment with one of our Probate Consultants who can meet with you at home in England or Wales to offer practical help and advice and provide you with a fixed Probate quote. Is Probate Needed to Sell a House? What is Probate? When is Probate Needed to Sell a Property? Jointly Owned Property There are two ways in which a property can be jointly owned; either as joint tenants or tenants in common. You can ask an estate agent to value the property for you.
The Revenue Office will usually expect you to get more than one valuation and it would be wise to get three. The value of the property usually forms a significant part of the value of entire the Estate which includes additionally any cash, investments, insurance policies and contents from the property.
You will need to ascertain if the deceased had any debts also known as liabilities including the funeral account, utility bills and Council Tax and sums owed to family members or friends. The liabilities need to be deducted from the value of the assets held do that can determine if any Inheritance Tax is payable.
This is all part of the process for applying for a Grant and you need to make sure the figures provided are accurate. You may need to do some work on the property before you put it on the market to make sure you get the best price. This could include giving the property a clean and a good airing. You could even buy some plants or flowers to brighten it up. Once you have the Grant you can exchange contracts and after this, the buyer is legally obliged to buy and cannot pull out without incurring fees which means you have secured the sale.
For more information see Selling a Probate Property.
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