Berley

Let your accountant handle probate

The decision to hire a solicitor or an accountant to handle probate may seem trivial when you’re grieving, but choosing one over the other is likely to save you money.

Since 2014, the Institute of Chartered Accountants in England and Wales or ICAEW has been given the approval to regulate probate services, meaning qualified ICAEW chartered accountants can be licensed to provide probate services.

At Berley Chartered Accountants, we are licensed by ICAEW to carry out non-contentious probate in England and Wales, giving consumers an alternative to traditional probate providers like solicitors and banks.

Over the past few years, we have helped families across London with probate services, saving them time and money in the process. In this post, we aim to discuss uncontested or non-contentious probate and why hiring a chartered accountant to handle the probate process makes sense.

Uncontested probate is common

When a loved one passes away, the process to manage their financial affairs can be daunting. In the media, we often hear about the time of grieving becoming a time of family conflicts – with next of kin arguing over their inheritance, questioning the validity of a will, hiring lawyers and taking issues to court.

In reality, though, many families respect the last will and testament made by the deceased and do not intend to contest it. This is known as non-contentious probate. In England and Wales, licensed accountants like Berley are allowed to conduct non-contentious probate. In the event of a dispute, it will become contentious probate and require a specialist probate lawyer to continue with the process. Once the point of contention is settled, the probate application can revert to the accountant.

Top benefits of having your accountant handle probate

Accountants have the skills and knowledge to carry out probate

Probate is a highly numerical matter as it involves money, valuation and tax – areas that accountants are trained to handle. Whether the accountant you choose to handle probate is someone you already rely on for financial advice or a newly acquainted person recommended by a friend, accountants are well-versed in accountant and tax law, hence well-placed to carry out probate.

Lawyers need to use an accountant anyway

As mentioned in the point above, probate is mostly a financial matter, which requires input from an accountant and includes anything from valuation to inheritance tax. In the event that you hire a lawyer to manage probate, he/she is likely to require the service of an accountant and passes the cost on to you.

Tax issues

Apart from gathering information pertaining to assets and liabilities of the deceased, our accountants can also help you to prepare any personal tax returns that are required up to the date of death and answer any capital gain tax and inheritance tax enquiries you may have. At the end of the probate process, we also assist in preparing a set of final accounts detailing all the money received and paid out.

For the record, capital gains tax is applicable if the property or assets of the deceased are sold during probate and its value rose since the person died. Meanwhile, inheritance tax is due if the estate is worth more than £325,000.

Accountants can be more cost-effective

Most law firms charge a percentage of the estate. Even if you think the estate is small, this could end up being a large sum of money once you factor in things like property and savings. In many instances, the family members also don’t know the total value of the estate until the process of probate is done. Here at Berley Chartered Accountants, we charge on a time-basis when we handle probate.

Berley’s probate service

Berley is London’s probate accountants, licensed to carry out non-contentious probate in England and Wales. We work on a clear fee structure agreed in advance; in other words, you know exactly what you are paying.

For more advice on how Berley London Chartered Accountants can help you with probate services, call us today on 020 7636 9094 or fill in our Online Contact Form.

If you’d like more information pertaining to probate, you can check out:

• Step aside solicitors, we’ll take over probate from here
• How can Berley’s probate service help you?
• Dealing with probate

This post is intended to provide information of general interest about current business/ accounting issues. It should not replace professional advice tailored to your specific circumstances. 

by Berley

Probate: Managing a loved one’s financial affairs after their death

Coping with the loss of a loved one can be a psychologically distressing experience, so allow yourself to rely on probate specialists for support.

Following the death of a loved one, it is common to experience an overwhelming sadness and a torrent of emotions like shock, exhaustion, anger and even guilt. Everyone experiences grief differently and there isn’t a ‘standard’ or ‘right’ way to grieve, but during the process, it is important to allow yourself to rely on friends and family for support. Equally, when it comes to sorting out the estate of the deceased, it makes sense to get support from a licensed probate practitioner who knows what they are doing.

What is probate?

Probate is the legal process you go through when your loved one has passed away and you are the executor of their estate with a duty to resolve all claims and distribute the deceased’s assets under a will.

The estate can be made up of money, property, shares and personal possessions like jewellery or cars.

There isn’t a set timeframe on when the probate process must be started following a death. However, as the executor (or administrator) of the estate, you are usually expected to complete the estate administration within one year from the date of death. The sooner you start and complete the process, the better it is as you may be liable for any loss caused by the process taking more than a year. 

Once the probate process is started, it may take three to five weeks for the Grant of Probate or Letters of Administration to come through if the case is straight forward, otherwise, it may take longer.

Is there a will?

If the deceased has a valid will which names the executor(s) and stipulates what is to happen to the assets (which should collectively be worth more than £15,000), then the executor will need to apply for a Grant of Probate. This grant gives the executor of the will the legal power to administer the estate according to the will. 

If a will does not exist, then a close relative (following the rules of intestacy) will need to apply for Letters of Administration in order to administer the estate. The close relative then becomes known as the administrator.   

The duties of an executor or an administrator can include:

• Notifying banks and other organisations of the death.
• Notifying the beneficiaries and determining the entitlements of beneficiaries.
• Getting the estate valued and reporting the valuation to HMRC.
• Obtaining a Grant of Probate or Letters of Administration.
• Paying liabilities, this may involve selling off assets like property to pay off taxes and debts.
• Distributing the remaining assets to beneficiaries named in the will.
• Keeping a record of the estate accounts.

The process of applying for a Grant of Probate or Letters of Administrations requires various legal documents to be prepared, signed and lodged, which is why it is best to rely on a probate specialist like our team at Berley.

Can accountants handle probate?

The answer is yes. At Berley Chartered Accountants, we are licensed by the Institute of Chartered Accountants in England and Wales (ICAEW) to carry out non-contentious Probate in England and Wales.

Traditionally, only lawyers were allowed to handle probate but that changed in August 2014 when licensed accountants like ourselves also became able to offer probate services.

Allowing accountants to provide probate services makes the process much more efficient as lawyers are required to get in contact with a qualified accountant in order to obtain financial information on the deceased. Essentially, using an accountant streamlines this arduous process, meaning you can concentrate on honouring your loved one’s memory rather than painstakingly pursuing the settlement of their affairs.

Using us for probate is likely to be cheaper too as we work on a clear fee structure agreed in advance. Unlike solicitors who are likely to charge on a percentage of the assets, we charge on a time basis. 

Talk to us about our probate services today on 020 7636 9094 or fill in our Online Contact Form.

If you’d like more information pertaining to probate, you can check out:

• Let your accountant handle probate
• Step aside solicitors, we’ll take over probate from here
• How can Berley’s probate service help you?
• Dealing with probate

This post is intended to provide information of general interest about current business/ accounting issues. It should not replace professional advice tailored to your specific circumstances. 

by Berley

Step aside solicitors, we’ll take over probate from here

Coming to grips with a significant loss in your life is never easy.

As you mourn and work toward acceptance and peace privately, you may also be inundated with a flood of responsibilities overtly such as making funeral arrangements and managing any outstanding financial responsibilities.

During this stressful period, managing your loved one’s estate may be the furthest thought from your mind, but probate is a necessary step and one that can be done effectively with the right people by your side, and our London-based probate specialists can help you to achieve that.

There are two types of grants concerning probate and we can help in both instances:

• Grant of Probate is when the deceased left a will. This grant gives the executor of the will the legal power to ask banks to release the deceased person’s assets so they can carry out the wishes as stipulated in the will.
• Grant of Letters of Administration can be applied by the administrator when the deceased didn’t leave a will. An administrator is a close relative (following the rules of intestacy) who is given the legal authority to settle the deceased person’s estate.

Why choose an accountant for probate?

Chartered accountants by trade and licensed by the Institute of Chartered Accountants in England and Wales to handle probate, we have the expertise and experience to help you to streamline the probate process and potentially save you a large sum of money in the process. The reason is simple – probate is a heavily numerical process as it requires an expert to access and analyse financial information, value the estate and answer any inheritance tax queries. As London’s local accountants, we are well placed to assist you with the aforementioned points.

In the event that you choose to use a probate solicitor instead of a licensed accountant, your solicitor is likely to enlist help from an accountant to analyse assets and liabilities, which can incur further costs to you. Delegating the probate process to a probate accountant like us enables you to cut out the middleman, thereby making the probate process cheaper and more efficient.

In addition, we charge on a time basis as opposed to a percentage of the assets like what a lawyer or a bank may charge you. If the deceased person’s estate runs into several hundred thousands of pounds, the amount you save can be substantial. Our fees are transparent and there will be no hidden charges.

Our probate service

Using Berley’s probate service will save you time and alleviate any stress you may have throughout the probate process. Depending on your circumstances, we can assist in the following areas:

• Gathering all the financial information (assets and liabilities) of the deceased person.
• Applying either a Grant of Probate or a Grant of Letters of Administration on behalf of the executor/ administrator.
• Preparing any tax returns that are required up to the date of death.
• Inheritance tax.
• Ensuring any liabilities/ expenses are paid before the executor/ administrator distributes the assets.
• Ensuring all assets are distributed in accordance to the will.
• Keeping records.

Berley can help with probate matters

With a wealth of knowledge and proven track record of managing the financial affairs of many individuals and families across London, we understand the situation you are in and will support you throughout the probate process.

If you’d like more information pertaining to probate, you can check out:

• Our probate page 
• Dealing with probate
• Understanding the difference between an LPA and a grant of probate
• How can Berley's probate service help you?

Alternatively, give us a call 020 7636 9094.

by Berley

How can Berley’s probate service help you?

Probate is the legal process of analysing and administering the estate of a deceased person whose estate is worth more than £15,000 and isn’t being passed to a surviving spouse or civil partner by definition.

A typical probate process usually involves:

• Confirming the validity of a will (if there is one)
• Obtaining valuations
• Applying for a grant of probate and paying service fees to HMRC (note: the government has planned to introduce a new fee system but this has been delayed)
• Paying inheritance tax
• Getting the assets released
• Making records
• Then finally, distributing the assets to named beneficiaries.

Dealing with the death of a loved one is never easy. On top of that, the probate process can be complicated, time-consuming, and stressful - all intensified during a time of mourning. At Berley, our licensed probate specialists in London understand that as an executor of the estate, you may already have a lot on your plate during this time of need and may not be in the best position to take charge of the whole probate process, which is why we’re here to help and lighten your load.

We are probate experts

The complex probate process used to be reserved for lawyers and solicitors, but as of August 2014, licensed accountants can also provide non-contentious probate services. Licensed by the Institute of Chartered Accountants in England and Wales, Berley’s probate specialists in London can help you to gather all the information pertaining to assets and liabilities of your deceased loved one. Additionally, we can also help you to prepare any personal tax returns that are required up to the date of death and answer any inheritance tax enquiries you may have. At the end of the probate process, we also assist in preparing a set of final accounts detailing all the money received and paid out.

Our probate specialists have the right knowledge and the endeavour to ensure you are supported through this difficult time. We know that as an executor of the estate, overseeing the deceased's finances can add a personal strain to you, this is why we are here to alleviate your stress so you can focus on other matters such as funeral arrangements.

Berley’s probate service can save you time and money

The probate process requires intricate knowledge of finance and access to the relevant account information of the deceased, which is something that not all legal professionals have. By going directly to an accountant like us, you do not have to wait for a solicitor to enlist the help of an accountant to access and gather the necessary financial information, thereby making the process more efficient and tailored for you.

Solicitors also tend to charge a percentage of the assets, while at Berley we have a clear fee structure that charges on a time basis with no hidden fees. The fees are also agreed in advance. As the cost of probate usually comes out of the estate, paying less fees may mean the beneficiaries of the estate receive a bigger share.

We are here to help

You can trust us to help you approach the necessary probate matters in a professional, efficient and sensitive way. For more information, contact our specialist probate team on 020 7636 9094 or send us an email at info@berley.co.uk.

You may also want to check out the relevant post:

• Dealing with probate 
• Step aside solicitors, we’ll take over probate from here

by Berley

Understanding the difference between a LPA and a Grant of Probate

When dealing with the ‘end-of-life’ affairs of a close relative or loved one, several stages of care may be involved. This process can span many years as a person’s health declines; and as their cognitive and mental capabilities begin to deteriorate, it may come to a point where they are unable to make their own financial or welfare decisions.

In such circumstances, it is commonplace for somebody else to take charge and protect their wishes and best interests. The appointment of this person may have been something already discussed and agreed with the affected person. Normally, the one who assumes control of the sick person’s affairs is a close family relative or a trusted friend. To take charge legally, there needs to be a ‘Lasting Power of Attorney’ (LPA) document in place. LPA legally gives delegated authority to the nominated person (or persons) and allows them to make decisions on behalf of the affected person.

LPA and probate, what's the difference?

When dealing with both concepts, there is some overlap in terms of the rights and responsibilities of the person entrusted with LPA and the person deemed as the executor of an estate under a grant of probate.

While LPA affords an individual the right to handle the affected person’s affairs while they’re alive, a grant of probate does the same after they’re deceased - essentially the distinction lies in when and how they’re able to exercise these rights and responsibilities. The line is drawn at the point that the affected person passes away. The person entrusted with the LPA is responsible for handling their affairs up until the point that they’re no longer alive, at which time the executor of their will becomes responsible for the handling of any finances and affairs according to the wishes outlined in their will.

While it is certainly possible for the person who is entrusted with Lasting Power of Attorney to also be the executor of the will, they require a different legal document to administer the deceased’s estate. This is called the Grant of Probate, and it requires a number of conditions to be met with respect to the lodgement of documentation to HMRC and other entities.

To put it more simply, the following definitions outline the significant points of difference with respect to a Lasting Power of Attorney and a Grant of Probate:

Lasting Power of Attorney: A legal document that empowers the holder to act on behalf of another person while they are still alive, in circumstances where they have become incapable, either through cognitive or physical impairment, to make independent decisions of their own. In the UK, there are two types of LPA – one is for on-going care and health while the other is for property and financial affairs. You can choose to assign your trusted family/friend with one type or both.

Grant of Probate: Probate is the process of administering the estate of a deceased individual. This process is handled by the executor stipulated in one’s will and whose responsibility is to ensure that the wishes expressed in the will are executed. This process may involve handling significant sums of cash or other assets. Naturally, other institutions may be involved – the banks, tax authorities and estate agents – and they need proof that the executor has the power to administer one’s assets properly. The Grant of Probate provides this.

What happens if somebody dies without a will?

When somebody dies without a will, this situation is known as ‘Dying Intestate’. In this instance, a family member has to apply for ‘a grant of letters of administration’. This is similar to a Grant of Probate and is issued by the courts. The person, who becomes known as the administrator, then has the powers to manage the disposal of the deceased estate. The same process applies with respect to the dissolution of an entrusted LPA and the administrator assumes control over the affairs of the deceased.

The distribution of an individual’s estate becomes incredibly difficult in circumstances where no will has been drawn up, particularly when disputes arise among beneficiaries. This process can get messy and often leads to strained or broken relationships, which is why it is always advisable to prepare a last will and testament when you have a chance to do so.

If you’d like to learn more about the processes for appointing a LPA or probate, or you’re interested in discussing the best methods for protecting your finances in the event of your passing, our specialist chartered accountants in London can assist.

Please contact us on 020 7636 9094 or alternatively, send us a message via our Contact Form.

You may also like to check out this post on Dealing with probate.

by Berley