Probate - Don't DIY!

 

There has been a definite increase in the number of do-it-yourself probate applications in recent times, particularly after the Court Service rolled out an online portal system in 2018 which allows people acting as executors a simpler way of making a probate application. Although this may be right for some, there should always be a degree of caution. Probate can be complex and it would be dangerous to think that obtaining and administrating probate is generally, straight forward or easy. Although the obvious benefit of a DIY approach is the avoidance of professional fees, there are a number of risks of which an executor should be aware, should they choose to obtain probate without the benefit of a solicitor. 

 

Some of the most common mistakes of DIY probate include:

 

• Undervaluing the estate for Inheritance Tax purposes.

• Failing to identify and report lifetime gifts and trusts to HMRC.

• Failing to pay Inheritance Tax within the strict deadlines.

• Failing to deal with a Trust in the will.

• Failing to identify or locate all assets of the deceased.

• Failing to identify all debts of the deceased.

• Distributing the estate to the wrong beneficiaries. 

 

If the estate is not handled properly, the executor who administers the estate may be personally liable for unpaid debts such as tax. If an executor, causes any sort of loss to the estate, for example a house is sold too cheaply, or if assets are lost or mismanaged, they could be held again personally liable to beneficiaries. An executor has a number of responsibilities before an estate should be administrated and failure to do so can result in personal liability but can also result in a court application to remove and replace the executor with costs consequences. 

 

So it is important that you assess whether or not DIY probate is right for you. It is important to note that pleading ignorance will not amount to a defence for an executor who gets something wrong and is pursued by a beneficiary or creditor. The value gained from the stress-free process of instructing a legal professional can be money well spent in the long run.

 

If you have doubts or concerns about an issue in the estate then it is always advisable to seek specialist legal advice. 

 

Should you need assistance with your role as executor and the administration of an estate please contact our Private Client department. 

 

Should you need advice in respect of difficulties being faced whilst in your role of an executor please contact our Emma Manifold in our Contested Probate team.