Understand 'Grant of Probate on credit'.

Afterthoughtbakewell

Can someone help me understand what Grant of probate on credit means exactly.

To cut a long story short, I am about to challenge the validity of a relatives will, and 10 days ago my solicitor put a caveat on probate being granted.

However the executor told me around the same time that probate hasnt been granted but a grant of probate in credit has been as they needed to sell a property to raise money for the IT.

Does a caveat stop this or is a grant on credit the same as actual probate being granted and is now unstoppable?

If so would the caveat have not gone through and wouldnt the will be a public document? On the probate registry it still says probate hasnt been granted for my relative.

Its quite possible the executor has made a mistake and it hadnt actually been accepted yet, but I wanted to understand it my head.

-Is a grant of probate in credit the same as probate itself being granted?

-Is the caveat useless if that has been issued?

-Would the caveat even have been able to be placed?

-Would it not appear on the probate register if it had been granted?

Thanks

Blessdays

“Grant of probate on credit” isn’t really a formal thing – it usually just means they’re expecting probate to be granted soon, not that it actually has been.

The key point is that a property can’t be completed/sold without probate being granted, so they shouldn’t be able to go ahead properly yet.

If your caveat has been accepted, it should stop probate being issued while it’s in place.

Also, once probate is granted it normally shows on the probate register (sometimes with a slight delay), so if it’s not showing, it likely hasn’t been issued yet.

Sounds more like confusion or loose wording from the executor rather than anything official.

Afterthoughtbakewell

https://forums.moneysavingexpert.com/discussion/comment/81980032#Comment_81980032

The executors exact words are 'probate hasnt been granted yet, but we have whats called a grant on credit'.

My solicitor seemed to think they were essentially the same for caveat purposes. Would the caveat have been able to have been lodged had probate been granted( even if it takes a little while to show up)?

The issue they were having was it being impossible to pay any inheritance tax off before selling a property.

So are you saying the caveat still stops probate being granted even if a grant on credit has been issued?

Thanks.

Blessdays

If probate had actually been granted, you usually wouldn’t be able to lodge a caveat afterwards, so that’s quite an important indicator.

A caveat should prevent a grant being issued while it’s in place. “Probate on credit” doesn’t really change that – it’s not a separate type of grant, more just wording people use when they expect probate to come through.

It may just be a misunderstanding or different terminology being used rather than anything being done incorrectly.

If you want to be sure, it’s probably worth checking directly with the Probate Registry so you know exactly where things stand.

Afterthoughtbakewell

https://forums.moneysavingexpert.com/discussion/comment/81980179#Comment_81980179

Ah, ok yes we were able to lodge a caveat. I did wonder if it wouldnt go through if probate had been granted so thats reassuring.

I have checked with the probate register online and it shows as ' no results'. Although it has only been 10 days, and I understand it can take up to 14 to list on there.

Thanks.

Savvy_Sue

This seems to set it out very clearly:

https://www.gov.uk/guidance/applying-for-a-grant-on-credit-for-inheritance-tax

A logical reading of the situation would be that the executor won't be able to sell the property while the caveat is in place, and they will have had to explain where the money is coming from to pay the IHT. And as long as you have the caveat in place, the money will NOT be coming from sale of the house. I don't know how patient HMRC will be.

probate_slave

A 'grant on credit' (IHTM05120) is not a limited grant (IHTM05151) in which HMCTS restrict the grant to a single asset. It is a full grant as far as HMCTS are concerned. The condition is an agreement between the personal representative and HMRC to pay IHT within a certain time, avoiding the need for a commercial loan.

Your executor's statement that "probate hasn't been granted yet, but we have what's called a grant on credit" makes no sense.

If probate hadn't yet been granted when the caveat was lodged, there was a chance of stopping it (though the registry is sufficiently inept that they have been known to fail to stop an application) - see IHTM05136. On the other hand, if the executor already had the 'grant on credit', then you were certainly too late, and it will eventually show up on the register.

Entering a caveat is so easy that no checks are made at the time.