Dealing with an intestacy

Rgee

Hello everyone, I'm dealing with the death of an elderly relative who didn't leave a will. 

I was her next of kin in terms of social relationship.  She was my dad's cousin - making her my 'first cousin once removed'.  Her closest relation is an uncle who does not have the capacity to deal with probate and has signed a PA12 (Power of Attorney - Intestate) form appointing me to act as his representative.  She was an only child and never married.  I have paid for a will search (which was negative.)

I have had her estate valued and it falls far short of the Inheritance Tax Threshold.

I have also done a lot of family tree work in the past, so I know how many of her other blood relation aunts and uncles (all deceased) were survived by children.

I am about to submit an application for letters of administration.  My relative was transferred to a care home from being admitted to hospital in her last month.
For the PA1A probate application, should I use the care home address or her house address?

The house that she lived in for pretty much all of her 94 years was rented.  Her belongings are still in this house.
Am I right in thinking that nobody has the right to dispose of her belongings until someone has been granted letters of administration? 

As well as looking for answers to the questions in bold above, has anyone got any other sage advice for this situation?

Many thanks and kindest regards,
Rgee

Keep_pedalling

I would use the rented home as her last address.

You don’t LoA to sort out her chattels, just hold on to anything of value until you can establish what her beneficiaries want to do with them.

RAS

What's the situation with the funeral?

Does she have assets worth more than £325k? As it may not be necessary to administer the estate formally. 

If she was renting a property and rent remains payable, the first thing to do is to secure the property, remove anything of value or likely to help identify assets. Then any momentos that might be wanted by family or friends.

Meantime talk to the wider family, give notice to the LL and find a house emptying company.

Rgee

@Keep_pedalling There look to be around 33 of us beneficiaries (most of whom she didn't know) - pending confirmation that they're all still alive - otherwise it could be more...  Her chattels consist of about £700 of jewellery and £100 for house contents.  The concern is that one of the beneficiaries might object to things being done informally.

Rgee

@RAS - the total estate will be well below £325k.  
I have removed her valuables and documents.  As I said in my reply to Keep_pedalling, there look to be about 33 of us beneficiaries - because her extended family was so big.  She didn't have anything to do with most of them, and they probably will have never heard of her. Although I have traced the names of her beneficiaries, I will still need to find out how to contact many of them.
She has a couple of bank accounts with Lloyds and I would expect that they will require probate before they release her funds.   
What would happen if I disposed of her £100 of household contents and one of the other beneficiaries made a complaint?

Keep_pedalling

With that many beneficiaries the only practical thing to do is sell them and distribute the proceeds. I would hang on to the small stuff for now but you need to get the house cleared and returned to the landlord ASAP to avoid too much of the estate being eaten up by rent charges.

Rgee

@Keep_pedalling would only an executor or probate holder have the authority to do that?

Keep_pedalling

If you have taken on the roll of administrator I don’t see any problem in sorting out the rental property. 

Silvertabby

Has the funeral been paid for?  This would have to be settled first, before any distribution of assets.  And are you absolutely sure that there are no outstanding debts?

RAS

Are any of the bank accounts worth more than £30k? If so, think about asking the funeral director to bill the bank directly.  Most now release up to £50k on sight of the death certificate providing you sign a waver. The only issue is NS&I.

I'd suggest you open a new bank account, and once that sorted, then change the name with (Estate of cousin) and get all the money paid there. You'll use some money to sort out any rent, settle utility bills, there may be letters re debts or payments re DWP etc.

You seem to be the person with the knowledge to sort out the distribution. Is the uncle you mention a full blood sibling of the first cousin one removed? 

Do check the intestacy flowchart on the gov.uk site to make sure that you are only counting as beneficiaries those closest to deceased, not their children if the closer relative is still alive. Do any of the 33 relatives have parents still alive?

Do you have any first or second cousins who could help? Just one to check with? Not a whole army.

Keep photos and personal documents in the short term and anything you think might refer to other family members, even if deceased. People often value those as much money. 

Keep_pedalling

RAS said:

Are any of the bank accounts worth more than £30k? If so, think about asking the funeral director to bill the bank directly.  Most now release up to £50k on sight of the death certificate providing you sign a waver. The only issue is NS&I.

I'd suggest you open a new bank account, and once that sorted, then change the name with (Estate of cousin) and get all the money paid there. You'll use some money to sort out any rent, settle utility bills, there may be letters re debts or payments re DWP etc.

You seem to be the person with the knowledge to sort out the distribution. Is the uncle you mention a full blood sibling of the first cousin one removed? 

Do check the intestacy flowchart on the gov.uk site to make sure that you are only counting as beneficiaries those closest to deceased, not their children if the closer relative is still alive. Do any of the 33 relatives have parents still alive?

Do you have any first or second cousins who could help? Just one to check with? Not a whole army.

Keep photos and personal documents in the short term and anything you think might refer to other family members, even if deceased. People often value those as much money. 

I know banks release relatively large amounts of money to administrators but wher that is not closely related to the deceased they are likely to want probate. They should however still be willing to directly pay a funeral director.