Distributing inherited assets can become a messy affair without guidance.
Estimates show that nearly 54% of adults in the UK don’t have a will. Still having one doesn’t make the process any easier.
You’ll still need guidance in the process of valuing and distributing the assets. To do so, consider probate valuation.
What Is Probate Valuation?
Probate valuation is a legal process that helps guide the execution and administration of a person’s assets after they die.
The executor of the estate gets a ‘Grant of Representation’ that gives them the legal rights to pass on the assets as written in the will.
According to Ruban Selvanayagam of ‘we buy any home’ specialists Property Solvers: “We often come people who have inherited properties, particularly those who are looking to sell bungalows – we underline that, without a grant of representation, it’s impossible to sell on the open market or directly to a company ourselves. Unfortunately, the process is extremely slow but it’s one of those ‘have to’s’ that cannot be avoided unfortunately.”
Probate valuation of an estate is only viable when it’s valued more than £5,000, with no other names attached to it. A death certificate is usually sufficient evidence to transfer ownership to beneficiaries.
But if you are interested in the process of probate valuation, here are the basics to get you started.
Establish the Executor of the Estate
The will should stipulate the person to take up the role of executor. Where there is no will, the rules of intestacy apply.
These rules state only married, civil partners or close relatives can inherit the assets. The rules also apply when the validity of the will comes into question.
The executor then compiles a list of the available assets. This list should include debts as they affect the final amount beneficiaries receive from the assets.
Fill out Forms for Grant of Representation
Some institutions require the executors to apply for a grant of representation to validate their authority in administering the will.
The Grant of Representation is a document that gives the executor of the estate the legal right to access assets of the deceased. The document also gives them the right to sell the assets as per the desire of the inheritors.
Some of the supporting documents you’ll need are:
- The genuine will;
- Proof of death;
- Clear instructions for executing the will.
There are three types of Grant of Representation.
- Grant of Probate is issued when there is a valid Will that gives clear instructions to the executors how to administer the assets.
- Grant of Letters of Administration applies when the deceased doesn’t leave a will. It gives the executors the right to administer assets according to the statutory rules of intestacy.
- Grant of Letters of Administration with the Will Annexed applies when a problem arises with the appointed Executor.
The right choice depends on the availability of a Will and if the Executors named wish to act.