What happens when someone dies?

Contents

What happens when someone dies?

Who is the person to do the work?

What else has to be done?

Why is a Grant of Probate necessary?

When a Grant of Probate is not needed.

What happends when a person dies?
When a person dies somebody has to deal with their Estate - with what that person owned. That is: their money, their home, (whether they own it or only rent it), and all the rest of their possessions as well as any pets. The possessions and property of the Deceased must be secured until it is established to whom these should go under the terms of the Will.

If the Deceased owned a car it must not be driven until the insurance policy is checked. That somebody must also pay any bills and other debts and then distribute what is left of the Estate to those people entitled to it.

Who is the person to do that work?
The general expression for the person who does this is " the Personal Representative".

More specifically, if the Deceased made a Will that person is called "the Executor". If he did not then they are known as "the Administrator". There can be up to four Executors or up to four Administrators.

If the Deceased made a valid Will: (some think their Will is valid and it is not! - have it checked by one of our professionals) then all the Estate dealt with by the Will (not all Wills deal with all of the Deceased's Property) is distributed in accordance with what is set in that Will. They are the Beneficiaries.

If the Deceased did not leave a Will: the Estate will usually belong to his or her relatives. Which relatives and how much they will get will depend on who is alive when they die, all in accordance with the rules laid down by law. Remember - the widow or widower might not inherit all of the Estate.

What else has to be done?
The Executor/Administrator is responsible for all the Deceased's assets and for paying the Deceased’s debts, taxes and the Estate expenses, including the funeral and mourning expenses. They make these payments from the Estate, not from their own income or savings.

Unless the Will states that Executors are to be paid for acting, they are not paid. Whichever is the case, their out-of pocket expenses (i.e. money actually spent by the Executor on postage, travel etc.) will be repaid out of the Estate.

Why is a "Grant of Probate" Necessary?
The Executor appointed by the Will is given authority to act by the High Court and the document issued by the Court to give this authority is called a "Grant of Probate".

Organisations such as banks, building societies, life assurance companies and registrars of companies in which shares are held need confirmation that the Executor to whom they pay the money or transfer the asset is properly entitled to have and to hold these. In other words the person who can give them a proper receipt.

A Grant is therefore proof that the person named in it as the Executor is the proper Executor and is therefore entitled to receive the asset; to use it as necessary; and to give it to the person who has inherited it.

A Grant is needed to transfer or sell a house or other property held in the Deceased’s sole name. The sale of the Deceased's home cannot be completed until the Grant is obtained although it can be placed on the market but exchange of contracts cannot take place without it because until "Probate" the Executor has no authority.

When a Grant is Not Needed
Not all Estates require Probate. In some cases, the value of the assets may be such that an organisation (bank or building society) may be prepared to pass over ownership without Probate. In those cases they will usually require an indemnity and a declaration to be completed by the Executor. The limit here is currently £5,000 as covered by the Small Estates Act.

In the case of a jointly owned asset, and depending on the type of joint ownership, the death of one of the joint owners may result in ownership passing automatically to the other joint owner. However, steps will need to be taken with the organisation involved so that they change their records. It may also be necessary to report the value of all jointly owned assets to the Inland Revenue.

N.B. Where there is no Will the Administrator gets from the High Court a Grant of Letters of Administration.

If you do not make a Will you die INTESTATE.

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