Dealing with the death of a loved one is painful enough without having to worry about complex legal matters. Unfortunately, many people who are left property after the death of a family member have to go through the time consuming and stressful process of probate in order to get what is left to them by the deceased.
However, whilst most people simply follow the process from beginning to end and put themselves through up to a year of stress, there are a growing number who choose to bypass this and instead sell to cash house buyers like We Buy Any Home. While selling to a property buying company may not yield the full market value of a property, it significantly reduces the workload and stress involved. There’s no need to worry about listing the house, coordinating viewings, or covering legal fees. We Buy Any Home can handle all the necessary tasks, allowing you to concentrate on more important matters. For a fast, assured sale of an inherited property, don’t hesitate to reach out.
But why is our service in demand? Understanding what probate is and what is involved can help shed some light.
What is Probate?
Probate is essentially the legal process of handling someone’s assets and liabilities after they pass away.
The process can be broken down into five phases:
· Phase 1 involves identifying all the deceased’s assets and liabilities and determining who is entitled to inherit what.
· Phase 2 involves paying any applicable Inheritance Tax to HM Revenue & Customs and obtaining the grant of representation.
· Phase 3 involves selling assets, settling liabilities, and accounting to HMRC for any taxes due.
· Phase 4 involves preparing estate accounts and getting approval from personal representatives.
· And finally, in phase 5, assets are transferred to beneficiaries and the remaining estate is distributed according to the will or rules of intestacy.
So, when is probate required? Usually, it’s necessary in Sunderland when the deceased owned property or significant assets in their name alone. If a financial institution has asked for a grant of probate, it’s likely that it will be needed.
Can you sell a house while going through probate?
When it comes to selling a house during the probate process, it’s important to understand the legal requirements and obligations involved.
If the Personal Representative (PR) is an executor under a valid will, they can market and even exchange contracts for a sale of the property, but they will need the grant of probate before completion. However, it’s unwise to exchange contracts before obtaining the grant as it can take months to arrive.
On the other hand, an administrator must wait for the grant of letters of administration before marketing the property. While it may be possible to market the property in the interim, it’s important to note that you cannot exchange contracts or complete the transaction until the grant is obtained.
Most of the time it’s not possible to sell a house before obtaining probate. There are exceptions but in the main, you are required to obtain it before any sale can go ahead.
How long before I can sell a house in probate?
Dealing with the probate process can be a drain on your time. Typically, it can take up to 12 weeks to obtain the Grant of Probate. While waiting for the grant, you can put the probate property on sale, but any offers made will have to wait until the grant is obtained before completion.
There are also tax implications to consider. If you are not a wife or husband, a civil partner, or a direct descendant you will have to pay inheritance tax, but only if the total value of the estate exceeds £325,000. And with the average property in the UK not far off this, a lot of people are required to pay some tax. However, remember, this tax doesn’t apply where a spouse or civil partner is the beneficiary of the estate. Direct descendants, including children, grandchildren and stepchildren pay inheritance tax on property worth more than £450,000, so the chances of avoiding having to tax are much greater.
How long does probate take in Sunderland?
It can take up to a year before you get your inheritance from the property – maybe more if there are complications which arise.
There are time limits and deadlines for Inheritance Tax, and failing to meet them can result in additional interest or financial penalties – the last thing you want to happen is you lose some of the money left to you to fines. The beneficiaries should be notified of their inheritance early on in the probate process, but there is no specified timeframe under the law of England and Wales.
After paying Inheritance Tax, HM Revenue & Customs will issue a receipt within 4 to 6 weeks, and the grant of representation will usually be issued 2 to 3 weeks later provided there are no issues with the application.
How to Bypass Probate
Once you have dealt with the legal aspects, you can proceed with selling it. However, selling any property can be challenging, especially when dealing with inherited property. Seeking professional help can save you a significant amount of time and stress during this difficult period. Or alternatively, you could look to sell to cash house buyers who can sell the property for you without you needing to go through any of the above! While you may not receive the full market value of the property, selling to a property buying company eliminates the need for tasks such as listing the house, arranging viewings, and paying legal fees.
Selling inherited property can present unique challenges that may be overwhelming during an already difficult time. We Buy Any Home can take care of all the work for you, allowing you to focus on more important matters. Give us a call to understand how we can help in more detail.
