How to sell a probate property? It is an essential question asked by many people in the UK. It is pretty difficult to experience the death of a loved one. At the same time, the frustration increases due to family disputes and legal problems.
Hiring a professional you can trust and who understands your problems. Makes a massive difference in streamlining the process and giving you peace of mind. Probate is an essential process that involves obtaining permission from the legal authorities to deal with the property of a person who has died.
If you are an executor in the will of a deceased family member. It is your responsibility to administer the probate house affairs. However, you can also hire a professional executor to carry out the process.
As an executor, you need to get a probate grant before you settle any outstanding debts or liabilities and sell the house.Remember, this involves a few steps, such as registering the death of your loved one, valuing the property, and paying inheritance taxes. If you want to sell a probate house, bear in mind that it is a challenging and time-consuming process.
Not only will you need to obtain a grant of probate before completing the sale, but you will also perform property valuable and put it on the market before the authorities grant you the probate. In today’s article, we will tell you the step-by-step process of selling a probate house. Read on!
Probate Property – Register Your Loved One’s Death
Applying for the grant of probate requires you to provide the authorities with your loved one’s death certificate. You can’t carry out the process without submitting the death certificate. At the same time, you will need the original copy of the deceased person’s Will.
Probate Property – Examine And Analyze The Will
It is crucial to examine and analyze the will of your loved one. If the deceased person has named you in the will, it means you are the executor. So, it is your legal responsibility to fulfill the dead person’s wishes.
We recommend applying for the grant of probate through the government website. On the other hand, if there is no will, someone from the family must become an administrator. Remember, this requires a letter of administration before they grant you the legal authority.
Probate Property – Check The Title And Deeds
You must get the property valued. It is crucial to know and analyze the house’s value before you apply for a grant of probate. You can hire a estate agent to get the job done. However, we recommend hiring 2-3 estate agents. So you get different valuations and compare them to select the one with more accurate figures.
Besides, check the property’s title and deeds. It is an essential step to carry out when selling the house. That way, you will know the restrictions of the property. Make sure you visit the land registry website to find this information. On the other hand, you will have to find the paper title and deeds. The deceased person’s solicitor usually keeps these documents.
Probate Property – Getting The Probate
Sometimes, people don’t need to apply for a grant of probate. However, in most cases, you must apply for probate to sell your house. Applying for the grant of probate requires you to estimate the value of the home.
It is an essential task that requires the executor or solicitor to examine the assets and calculate their values. These assets include the property itself, cash, pension, or monies given away as gifts.
In addition, the process of obtaining a grant of probate can take a few months. Research shows that it is usually between three to six months or longer, depending on the type of property and the procedures involved.
So, bear in mind that this won’t happen overnight. The authorities may also charge a fee depending on the circumstances. The fees are based on the value of the property. Make sure you prepare yourself for all these processes before selling the house.
Pay Taxes
Before the authorities grant you probate, you must notify the HM Revenue and Customs (HMRC) of your loved one’s death if there are any outstanding inheritance taxes. There are specific situations where inheritance tax on the property are is not payable. However, we recommend reporting it to the HMRC even if the property value is below the threshold.
Besides, it is important to pay all the debts and taxes owed by your deceased loved one. When you fail to pay these liabilities, you may face legal penalties and not sell the house appropriately. You must also pay the inheritance tax before the authorities grant you the probate.
Although you can’t access the estate, you can use money from the estate to pay taxes through the Direct Payment Scheme. You can also apply for the executor’s loan, allowing you to obtain the probate and access your deceased loved one’s affairs. Moreover, you don’t need to pay inheritance taxes if the property’s value is less than £325,000.
Similarly, you don’t need to pay taxes if the deceased person has left everything above the £325,000 threshold to their spouse, civil partner, business partner, a charity organization, etc. If the dead person had chosen to leave the property to children or grandchildren, the inheritance tax increases to £500,000.
The rate of inheritance tax in the UK is 40%. The authorities will charge the tax if it is above the threshold rate. You must pay the taxes owed within six months of your loved one’s death. If you fail to do so, the authorities will charge you interest in the amount of inheritance tax.
