Selling a property in probate can be a difficult process, especially after losing a loved one. Legal obligations will need to be met whilst dealing with the challenging emotions of grief. Understanding what’s involved and having a plan will lower the stress associated during this difficult time.
Emma Hurrell in the Wills, Trusts and Probate team outlines the process of a probate sale.
What is probate?
Probate is the legal and financial process of dealing with the property, money and assets of a person who has died. It’s the process of proving that a Will (if there is one) is valid and confirming the authority to administer the estate of the person in question.
The probate will last until all the debts and taxes have been paid and the inheritance has been passed on.
Selling a probate property
Apply for a Grant of Probate: Determine whether you will need to have a Grant of Probate in order to sell the property. Checking the title deeds at the Land Registry will point you in the right direction as to which documents you may require. If you do require a Grant of Probate it is essential that you start the process of obtaining one as soon as possible.
Capital Gains Tax: Once you have obtained the Grant of Probate, it is important to consider how to deal with any Capital Gains Tax which may become payable following the sale. If there is a gain then in most cases we can advise you on steps that can be taken to mitigate any gain that may arise. These steps however must be taken prior to contracts being exchanged. If you exchange on the sale without taking any steps to mitigate the liability, the estate may then have to pay Capital Gains Tax, which may not otherwise have been payable or which could have been reduced. We can assist you with trying to mitigate any Capital Gains Tax if necessary.
Get the property valued: Whilst you are waiting for probate make sure to get the house valued. With a probate sale, the value should reflect the market value of the property as at the date of death.
Getting your home valued by an estate agent is free, we recommend asking three different agents for a good steer. As an executor it’s also important to insure the property you are selling.
What if not everyone agrees to sell the probate home? Although there may be multiple beneficiaries of an estate only the person named as the executor will have the right to agree on the sale of the property. Keep all lines of communication with those involved open and record everything agreed in writing.
Can a house be sold before probate is granted? Legally you can put up a house for sale immediately, although you can’t complete the sale until the probate is granted. Note: It can take 12 weeks or more to be granted probate. Always allow yourself 3-6 months for the full cycle.
What will it cost me? You should not pay any more legal costs than you would for the sale of any other property. There may be some additional cosmetic costs such as clearance, cleaning and insurance.
How Blaser Mills Law can help
Selling a house in Probate can require a level of time and dedication that you may not be able to give, especially if you are grieving for a loved one. Specialist knowledge about the probate process and the business of selling a probate property can make the sale happen more smoothly.
Blaser Mills Law offers a Probate Sale Service where we can help you arrange valuations through our network of local independent estate agents, and work with you throughout the process to make the sale as smooth as possible.
Our Residential Property & Wills, Trusts and Probate teams can help with:
- Applying for and obtaining a Grant of Probate or;
- A full administration of the estate.
To find out more about how we can help contact Emma on 01494 478687 or email ejh@blasermills.co.uk.