Probate

frankie1star

Am looking into for a friend who is executor of an Estate. He wishes to do probate himself, but I am concerned about the implications. He realises he has to swear an oath, but what happens in the process?

If something is missed, will there be penalties. I advised him to get someone to do it for him, but he thinks he is capable himself.

Any help gratefully received..

RayWolfe

For most estates, probate is easy for a reasonably intelligent person.

fengirl_2

It depends on how complicated the estate is. It should be possible for reasonably intelligent person to do this.
He will first of all need to notify all the organisations with which the deceased held investments or other assets of the death and ask them how much they are holding. He would need to contact all creditors and establish how much is owed to each one. Once all this info is gathered together, he can make the IHT return and pay the tax (if one is due), the final tax return (if one is due) and apply for Probate. Once this is granted he can liquidate all the assets and distribute them to the beneficiaries.
If anything is missed, this can be addedd to the estate at a later date, but if a liability is missed, he would have to go back to the beneficiaries to claim it.

CLAPTON

lots of people do probate themselves but it rather depends upon how complicated the estate and circumstances are.

frankie1star

my worry is, if he misses something, will there be penalties to pay to HM, and if so what would they be?

He is intelligent, but is too emotionally involved. When does taper relief kick in? As I am not sure he is aware of this?

CLAPTON

depends upon the size of the estate and how complicated... you have even said how much is involved

frankie1star

I dont know how much its worth,

00ec25

I would just support all that's been said before. I knew nothing about it before my father died and we had used a solicitor when my mother died.

The actual probate bit is straightforward and the guidance documents issued by the probate registry are written for a DIY scenario so explain things well. The oath is intimidating, as you are swearing that what you have presented is accurate and if HMRC then disagree yes there are penalties, usually just extra tax - unless they decide it's fraud rather than ignorance (not that the latter is of course a defence in law!)

the fact he is emotionally involved works both ways, psychologoists will say it might help the grieveing process by giving him some on going involvement with their relative or of course he may be emotionally unable to cope but as siad above, unless the estate is complex (eg Trusts are involved), then most intelligent people can DIY

in terms of whther you should encourage or discourgage him then its your judgement on their emotions as ts the process itself should not be a problem if the estate is relatively simple

frankie1star

how do HMRC differentiate between forgetting and and fraud?

dzug1

frankie1star wrote: »

how do HMRC differentiate between forgetting and and fraud?

If you forget, and tell them when you remember, they'll be happy.

If you forget, and stay forgetting - well you will never realise those assets as you have forgotten they exist. HMRC won't care

If you forget, remember and don't tell them - that's fraud.

Debt_Free_Dreamer

Probate is quite simple. As mentioned previously the information provided in the Probate pack is self explanatory.

Just be methodical

Keep a file of all your information, letters etc., so you can show what you did if there is ever any come back

Read the Probate pack carefully and contact them if you are unsure of anything.

Solicitors charge a fortune for a simple job (if the estate is not complicated)

One we contacted wanted 1.5% of the value of the house, 1% of the value of the cash and £12 per letter they wrote. I wrote bewteen 50 - 100 letters. (Dad was a credit card tart and didn't seem to close them down!) The bill would have been thousands.....

No problems with anyone we contacted, it was all very straight forward.