When a person dies, dealing with their estate is often the last thing on the mind of their loved ones – especially when they’re grieving. However, it is a necessary step. Probate can be a lengthy process when things run smoothly, but it can take even longer and cost more if mistakes are made. Probate is the legal and financial process of administering a person’s estate, including their property, money and possessions.
Not following the correct procedures or understanding what you need to do can cause costly delays to the process. In this article, we take a look at some of the common probate mistakes that families make.
Assuming probate isn’t needed
Many people do not realise that probate is required. It’s a common misconception that if the deceased had a Will or the estate is small, then probate isn’t required. That’s not always the case: while some smaller estates can be handled without a grant of probate, many still require one.
It is always best to check whether probate is needed, as starting the process as early as possible can prevent assets from being released and prolong the probate process for the family.
Failing to value the estate accurately
Getting the value of the assets within the estate is vital. Undervaluing them can lead to HMRC penalties, while overvaluing them could result in the family paying more inheritance tax than necessary. It’s also important to understand which assets are to be included in probate and which are non-probate assets.
This article explains the difference between probate and non-probate assets in Probate vs Non-Probate Assets: What You Need to Know. Making sure you include everything, from pensions and investments to property and cash, can help prevent disputes and tax problems.
Missing documentation
One of the main reasons for probate delays and additional costs is missing or incomplete documentation. Common mistakes include losing the original Will, an incomplete Will, missing bank statements or financial records, or inadequate details of debts and loans.
If the paperwork is disorganised, it creates more work for the executors and often requires them to spend weeks chasing information, which costs the family more and increases the time probate takes.
Family disputes
If family members disagree about how the estate is divided or about specific details, the probate process can stall. Emotions often run high, making disputes more likely, and even small misunderstandings can grow into bigger problems. These issues usually come from confusion about the Will or feelings that the asset division is unfair.
Clear communication is the best way to prevent family disputes. A probate professional can help everyone understand the process, lower the chances of conflict, and keep things moving forward. If disputes halt the process, it will usually take longer and cost more.
Not using a probate expert
Some people think they can handle the probate process themselves, but it’s not easy. While you may think you’ll be saving money, without experience and the knowledge a probate professional brings, you could end up making costly mistakes.
There are strict deadlines and tax rules to adhere to, and failure to comply with these may result in penalties, but working with a probate professional can help give you peace of mind.
Looking for a compassionate probate professional?
If you are about to begin probate and are looking for compassionate support during what can be an incredibly difficult time, please get in touch with Julie and Hughes Probate.