Last Will & Testamant

I have done probate a couple of times, in both cases there was a will and in both cases there was effectively no real property valuation to worry about. On the first death all property rights passed to the surviving spouse so while there was a half property value it was not a huge issue so not in any way contested by HMRC. By the second death the property had been sold so it was a cash and minimal property only deal and yes, a valuation was obtained from only one sources and in view of the smallish value, again there was no HMRC discussion involved. As other have said Probate is a straight forward if increasingly expensive process and can, I understand now be set up on line. I used the semi automated papers that did not really work as there were errors in the calculations so it all went as hard copy. HMRC and the probate process were very happy not to have valuable property involved.

Warning, a Power of Attorney can be hugely valuable if you suffer health impairments that do not kill you. I had to deal with the court of abuse* as one person did not have a valid POA, they were back then a nightmare of limited competence  and frankly very limited interest. Their own ‘inspector’ or were they called visitor told us to do enough to keep them off your back, then ignore them so that sort of sets the tone. They are another expense of numbers of hundreds of pounds plus an insurance bond at more money. A small estate might get relief or get flattened.

A solicitor can add thousands perhaps many tens of thousands or pounds to both probate and Court of Abuse* cases. They are rarely needed.

*They call themselves court of protection, what an oxymoron.

My Aunt made a will properly then added an amendment later, quite a small amount was involved. This was signed by the neighbours. Probate said it wasn’t worth a fig and I was to execute the original will. It turned out the value of the estate was under their limit and they didn’t get involved so I followed her wishes.

My advice is to make a will. 25 years ago when we got our first property we used a local will writing service and sorted Power of Attorney at the same time. Now the final child has flown the nest it’s time for us to revisit it all. Mother in law kept up her membership of Unite after retiring and recently, after much nagging, took advantage of their free service.

Alan Wood wrote:

Whether you need a will or need to obtain probate after your death depends mainly on your surviving assets. If your assets are more than £325K (including your house and all your possessions) then inheritance tax will need to be paid.

In the case of a married (or civil partnership) couple, the exemption passes to the other spouse on death, and so £650k (EDIT: Subject to the estate passing to the surviving spouse/civil partner on death). The family home will, over the next couple of years, gain a separate exemption to take estate value to £1m.

In a rented property with little real estate value (I know that feeling well, I’m one of those people worth more alive than dead) it’s just not worth the effort of a will. No inheritance tax implications, no capital gains tax implications etc. The only issues are ensuring someone has access to the remaining assets.

D-Dan

John has already indicated these circumstances do not apply to him which is why I did not go into that area but yes you are correct in what you say.

Should there ever be a need for probate, for an individual with assets under £5k, it’s just a matter of attending & swearing an oath.

The solicitor who drew up all our wills advised me to do it myself & that if he had to attend, not only would I have to pay his fee but there would be no leeway if he got anything wrong. The procedure is much friendlier for individuals.

Alan that was a useful food for thought. There can be subtle traps for the unwary and the link does provide details of free schemes that frankly are aimed at such as John’s situation. The main issues are having the right to claim any property, the right to carry out the funeral of the decease’s choice – and paying for the funeral. That can be a big one in almost all cases. If there is any value to the estate that might conceivably be used for such expenses it can be difficult if the funds get locked up and someone else has to find the cash.

A long time ago I briefly worked in a bank I saw several really unpleasant messes over deaths and and the deceased’s affairs. It can, and sometimes did result in the deceased being left in limbo for a very long time. The ‘nearest and dearest’ were deeply embarrassed and upset.

On the other hand one was almost the script for a ‘B’ comedy movie as hangers on tried to destroy the value of the estate. In that case the bank had to step in and bring the farce to a close. It could claim to be acting in the interest of avoiding risks to the bank’s position as the then banking rules allowed.