Ellie Uttley is a Solicitor and Director working across our Property and Wills and Probate department. In our latest blog, she considers whether DIY Probate applications are a cost-effective solution.
When a loved one passes away, dealing with their estate can be simply overwhelming. Understandably, many people opt to deal with the probate themselves as a cost saving exercise, but despite appearing simplistic, the smallest of mistakes can have big consequences.
The Inheritance Tax minefield
If the estate of the loved one is over a certain threshold, it may be that a submission to HMRC is required. Inheritance tax (IHT) is a complicated process, and it is important that any possible reliefs are considered, depending on the circumstances. Any overpayment of IHT will result in less funds available for the estate and therefore the beneficiaries; underpaying could result in serious penalties and interest accruing. We can help identify ways to legitimately reduce the estates tax bill which is something you will not get from a DIY application.
Mistakes upon the application
Tiny mistakes that are made throughout a DIY application that could potentially expose the estate to penalties. Particularly if you’re an Executor, even a small and unintentional mistake could hold you personally liable forever. For example, distributing the estate before settling debts could mean you have to repay creditors out of your own pocket.
Furthermore, mistakes throughout the process will often cause a significant delay which can create stress for grieving families. The average timeframe for probate applications is currently twelve weeks, providing there are no queries that have to be raised. Where mistakes have been made on filed documents, it is likely that the timescale will run far beyond this.
Family disputes
If there are family disputes, or someone feels that the Will is not valid or fair, the situation can quickly accelerate to being contentious. Legal professionals can act as a neutral third party and help navigate these emotionally charged situations whilst keeping everything legally complaint.
If you have been named an Executor within a Will of a loved one who has recently passed, getting professional advice before opting for a DIY application is key. The appointment of a professional is an investment and can save you time, money and stress.
Ellie Uttley is a Solicitor in our Wills and Probate department. For more information, please contact her on 01706 818111 or email her at ellie.uttley@lancslaw.co.uk
