The Key Differences Between Estate Administration And Probate

Losing a loved one is always traumatic but, if you are responsible for sorting out the deceased’s affairs, the situation can be even more challenging. ‘Estate administration’ and ‘probate’ are legal phrases with which many people are familiar with, but few understand what, in practice, those terms mean. This can cause confusion after a family member has passed away and, without the expert advice of a wills and probate solicitor, such as Astle Paterson, settling their estate can be time-consuming and puzzling.

In this article, we explain the difference between estate administration and probate to help eliminate any confusion.

What Is Estate Administration?

When someone dies, they usually leave behind an ‘estate’ which, in simple terms, is everything they owned at the time of death. This includes cash, investments, proceeds from life insurance policies or pensions, property, and possessions.

Estate administration is the process by which all their legal and tax affairs are managed after their death. Before any inheritance can be distributed to the beneficiaries of the estate (who are usually named in a Will), outstanding debts must be sold, assets disposed of, and taxes paid.

One of the main tasks in estate administration is obtaining a Grant of Probate. However, it may also include:

• Completing necessary Inheritance Tax forms.
• Arranging for postal redirection.
• Closing utility accounts and subscriptions, such as telephone, streaming services, and insurance.
• Closing social media accounts.
• Selling property.
• Arranging for the sale or transfer of a business.
• Valuing and disposing of assets.
• Arranging for house clearance.
• Closing savings and investments accounts.

Estate administration can be time-consuming and, in many cases, complex. This can be stressful for the executor or estate administrator, who may be completing the work alongside their usual job. A professional administrator can be appointed to process the estate on their behalf, if desired – or the executor or estate administrator can instruct a Solicitor to assist them.

What Is Probate?

Probate is sometimes confused with estate administration but is only part of the process. It is, however, in many instances it is legally necessary for the administration of the estate to take place.

The Grant of Probate gives a person named in the Will to look after the estate (the executor) permission to handle the affairs of the person who has passed away. It is usually required if the deceased owned property by themselves or if their bank or building society requests to see the Grant before releasing funds.

Executors often wonder what estate value requires probate, but this depends on the thresholds set by individual banks. Typically, a small estate with no property and less than £5,000 in cash isn’t likely to require a Grant of Probate. For larger or more complex estates, probate is likely to be needed, even if a Will is in place.

Looking For Probate And Estate Lawyers Near Me? Contact Astle Paterson Today.

At Astle Paterson, our specialist wills and probate team provide a comprehensive range of legal services that are tailored to your personal needs and circumstances. We can also assist in the process of estate administration to ease the burden on family after the death of a loved one.

To find out more, please call us today.

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