It’s advisable to make a list of the deceased’s assets and liabilities. This can be used if you apply for a ‘Grant of Probate’, or it can be passed to your solicitor or professional advisor. You will need to value everything someone owned at the time of their death including property, money and possessions, as well as anything they owed such as loans, credit cards and mortgage debt.
There are two reasons for this; firstly, you will need to calculate if you owe any inheritance tax and if so how much this is. Secondly, you will need to arrange for the distribution of the estate according to the will (there is also a process in place called intestacy if there is no will). In order to do this successfully, you need an accurate valuation.
- Assets
- Jointly Owned Assets:
- Property
Property may be a ‘jointly owned asset’. It’s common for two people to own property jointly and pay for it, either via a bank or building society loan, or outright, together. If this is the case, then usually the asset will automatically be passed to the other owner(s) of the property. This is called a ‘joint tenancy.’
However, there are cases when the joint tenancy hasn’t been put in place. It’s worth checking with land registry or using a probate specialist if you’re unsure.
Bank and Building Society Accounts
Again, if these are jointly owned, then they are (usually) passed automatically to the surviving joint account holder. There are cases where this has been disputed, for example, unmarried couples. However, it’s best to gain the advice of a solicitor if you wish to contest this.
If accounts are held in the deceased’s name only, then you will need to write to the bank/building society and send them a copy of the death certificate. You will also need to ask the bank to stop all standing orders and direct debits and send you a letter of final account details.
Other Assets could also include:
- Stocks and Shares
- Employment Contracts (there may be monies owned from work completed and not yet paid for)
- Possessions
Liabilities could include:
- Household Bills – water, gas, electricity, etc.
- Mortgage
- Council Tax
- Credit Cards and Loans
- Funeral Expenses
Once you have valued all the assets and calculated all of the liabilities, you will need to pass this on to a solicitor, (who from there can help you with any paperwork and legal tasks) to apply for Probate on your behalf or you could use this information in a probate application form yourself.
Either way, it is a task that needs to be completed in order to receive a ‘grant of probate’ or ‘letter of administration’ if there is no will.
