When you are given the responsibility of dealing with the estate of a late husband or wife, there is often a great deal to consider during an already difficult time. To gain access to a late spouse’s estate, there are several important legal requirements and steps you will need to follow. This includes applying for probate, addressing inheritance tax, and understanding how the estate will be distributed, all of which can make the process feel complex. In this post, we’ll guide you through the key steps involved in managing a late spouse’s estate, highlighting the legal responsibilities and considerations to be aware of as you navigate this process.
Dealing With a Late Wife or Husbands Estate After they Pass Away
Going through the loss of a wife or husband is an incredibly emotional and challenging time, and it can become even more overwhelming when faced with legal responsibilities. As the surviving spouse, you may be named in the will as the person who inherits your late partner’s estate, which could include property, savings, pensions, and personal belongings.
Some of the key steps to take following their death include applying for probate, considering inheritance tax implications, joint ownership, trusts, and outstanding debts, and the transferral of assets. In these situations, many people choose to seek legal support to ensure everything is transferred correctly, without unnecessary delays or errors, by getting advice from Gillhams Solicitors.
The Probate Process
When a spouse passes away and you are named in their will to deal with the estate, known as the executor, you will usually need to apply for probate. If there is no will, you would typically apply for Letters of Administration and become the administrator, assuming you are the next of kin. Probate may not be necessary in some cases, particularly if the assets are jointly owned or of low value, and a solicitor can provide legal advice to help determine whether this applies to your situation.
Obtaining probate involves calculating the total value of all assets and debts, and determining whether inheritance tax is due. You must then submit an application to the Probate Registry, along with relevant documents such as the will, death certificate, and inheritance tax forms. If approved, this gives you the legal authority to distribute the estate, sell property, pay debts, and access bank accounts.
Inheritance Tax Considerations
When applying for probate, one of the most significant considerations you need to make is inheritance tax. There are spousal exemptions for inheritance tax in the UK, where if someone leaves their entire estate to their spouse or civil partner, that portion may be exempt from inheritance tax. This is known as the spouse exemption and applies only if both parties are legally married or in a registered civil partnership at the time of death.
In this case, no inheritance tax is payable on the part of the estate passed to the surviving partner. However, if inheritance tax is due, for example, if part of the estate is left to someone else or the deceased had previously inherited a large estate, HMRC will calculate the amount owed, and at least a portion of it must usually be paid before the Grant of Probate can be issued.
Joint Ownership, Trusts and Outstanding Debts
Joint ownership, trusts, and outstanding debts are also key considerations after the passing of your wife or husband when managing their estate. By addressing these early, you can be better prepared for the probate process and the responsibilities involved. Below, we explore each of these three considerations and why they are important when dealing with a loved one’s estate.
Joint Ownership
In cases of joint ownership, the legal structure of the asset determines how it is handled after death. If you and your spouse owned property or accounts as joint tenants, these typically pass automatically to the surviving partner and are excluded from probate. However, assets held as tenants in common do not pass automatically and instead follow the instructions in the will or, if there is no will, the rules of intestacy.
Trusts
Trusts may arise if assets were placed into a lifetime trust or if one is created under the will. These situations can involve additional legal and tax responsibilities for the executor or surviving spouse. Trustees are required to manage trust assets according to the terms set out, which may include holding them for named beneficiaries or distributing them at specific times, depending on the structure of the trust.
Outstanding Debts
Outstanding debts and liabilities must be assessed before any assets can be distributed to beneficiaries. All debts owed by the deceased, such as mortgages, loans, credit cards, or utility bills, must be settled from the estate. This also includes tax liabilities like income tax or unpaid inheritance tax. Executors are responsible for ensuring these obligations are met, which may impact how much remains in the estate to distribute.
How Assets are Transferred and Distributed
Once the Grant of Probate has been issued, the executor has legal authority over all the assets in the estate, including property, money, and possessions, and can begin transferring and distributing them to others if required by the will. It is common for people to leave assets to family members, friends, or other individuals, who are known as named beneficiaries.
It is the legal responsibility of the executor named in the will to ensure these wishes are properly carried out. This includes collecting and valuing assets, settling any debts and taxes, and distributing what remains in accordance with the will. Assets are then able to be passed on to the named beneficiaries according to the wishes of the deceased.
Probate Support with Gillhams Solicitors
At Gillhams Solicitors, we provide clear and compassionate legal guidance following the death of a wife or husband with professional probate services. We assist with managing the necessary formalities involved in obtaining probate, and also offer expert support with related matters such as inheritance tax, contesting a will, or handling an estate where no will has been made.
By choosing Gillhams Solicitors for support with a late partner’s estate, you can be confident that you will receive professional, compassionate guidance from a trusted and experienced legal team. To speak with our team, please call us on 020 8965 4266, email solicitors@gillhams.com, or complete our online enquiry form.
