A Guide to Selling Property in Probate
8 minute read
Date Published - June 30th 2022
Date Updated - November 7th 2024
8 minute read
Date Published - June 30th 2022
Date Updated - November 7th 2024
Managing probate and selling a property as part of that process can feel overwhelming, especially when you're already grappling with the emotional weight of losing a loved one. If you find yourself as the Executor of a Will, you might be required to handle the sale or transfer of a house, flat or land after the owner has passed.
If the property was solely owned, you’ll likely need to obtain a Grant of Probate before taking any further steps. However, if the property was jointly owned with a surviving partner or placed in a trust upon the owner’s passing, you may not require a Grant.
When selling a property in probate, there are several important considerations to keep in mind. Each situation is unique, and understanding the legal implications is essential for a smooth process.
If you’re seeking guidance on selling a property in probate, don’t hesitate to reach out to one of our knowledgeable Conveyancing or Probate experts. We’re here to help you navigate this process with confidence.
In the UK, probate is usually required if the estate exceeds £5,000 or includes property solely in the deceased's name. Smaller estates and jointly owned properties might not need probate. The specific threshold can vary based on the asset types and values. Consulting a probate solicitor helps determine if probate is necessary and simplifies the process.
Selling a property in probate can seem daunting, but several key considerations help streamline the process.
Understanding the property’s value is essential when selling in probate. Accurate valuations not only assist in setting a fair sale price but also play a crucial role in calculating any Inheritance Tax (IHT) owed. As the Executor, you’ll need to arrange several valuations from reputable estate agents or chartered surveyors. This approach ensures that the total assets and liabilities of the deceased are accurately reported in the probate application, fulfilling important legal requirements. Using multiple valuations provides a balanced view of the market value, helping you avoid disputes and ensuring a fair sale price.
Title deeds are vital documents that prove ownership of the property. Locating and reviewing these deeds is necessary to prevent any confusion over ownership. If the deeds are missing, you can request copies from the Land Registry. It’s wise to resolve any discrepancies or issues with the property’s title before moving forward, as these can delay the sale. Addressing these matters early helps avoid complications during the conveyancing process.
Determining your Inheritance Tax liability is a crucial step. IHT applies to the total value of the estate, including the property itself. The valuations you gather will help you calculate the IHT owed. Paying this tax promptly is important to avoid penalties and interest. Consulting a probate solicitor can provide clarity on any allowances and reliefs you might be eligible for, potentially reducing your tax burden. Ensuring all necessary forms are completed accurately will also help keep things on track. For more detailed information on Inheritance Tax and how it may affect you, be sure to check out our dedicated IHT blog.
Before you can list the property for sale, obtaining a Grant of Probate is required. This legal document gives you the authority to manage and sell the deceased’s estate. Typically, the probate application takes around eight weeks, but it may take longer if complications arise. Once you have the Grant, you can begin marketing the property and starting the conveyancing process. It’s essential to inform potential buyers about the probate timeline, as contracts cannot be fully exchanged until the process is complete.
As the Executor, it’s your responsibility to maintain and secure the property. Unoccupied homes can be vulnerable to issues such as damage, dampness, vandalism, and even fraud. Ensure that appropriate insurance is in place and regularly check on the property. Simple actions, like keeping the heating on during winter, can prevent issues like burst pipes. Keeping the property tidy and secure not only helps preserve its value but also reassures potential buyers.
Finally, be aware that if the property's value increases between obtaining the Grant of Probate and selling, you may be liable for Capital Gains Tax (CGT). As the Executor, it’s important to understand this potential liability. Market fluctuations can significantly affect property values and tax obligations. Understanding how CGT works and consulting with a probate lawyer can help you manage and reduce these taxes. Staying informed about property market trends will also prepare you for any tax implications that may arise.
Take inventory of all the assets
This is the first step in identifying and locating all the deceased's assets and debts to determine the estate's value. The executor must create a thorough inventory of the deceased person's estate. This includes gathering all relevant documents, such as property deeds and bank statements, and finding out all the details of the money owed to the estate.
Secure and manage the assets
The executor is responsible for securing and managing the deceased's assets and must ensure that no property is lost before or during probate until it can be distributed to the beneficiaries.
Apply for probate
To start the probate procedure, the executor must apply for a grant of probate to allow them to distribute and handle the estate
Sell or Dispose of Assets
Before probate is granted, the executor is not legally allowed to sell, distribute, or dispose of any assets from the estate. Doing so could lead to legal complications and potentially reduce the estate's value, harming the beneficiaries' interests. The assets must remain intact until probate gives the official go-ahead.
Empty the House
While securing the property is allowed, completely clearing out the house or removing valuable items before probate can lead to significant legal risks. The executor must ensure that all assets remain in the estate until they are legally permitted to distribute them. This ensures that all beneficiaries receive their rightful inheritance.
If the deceased person was the sole owner of the property, the executor cannot sell it before getting a grant of probate. It makes perfect sense to get the property valued and put it onto the market, but to complete the sale before probate is granted would be foolish and could result in legal complications.
Although you can apply for probate yourself, it’s better to get a specialist probate solicitor involved with the whole process from the start. This is especially the case if you are administering an estate where there are significant amounts of money involved, or where there is any uncertainty or ambiguity in the Will. Also, if you are dealing with insolvent estates, where the debts outweigh the value of the estate, it can make it a time-consuming and complicated process.
There’s no strict deadline for selling a probate property in the UK, but it's generally advisable to complete the sale within a year. This timeframe helps reduce financial risks and other complications. However, if you face issues like market downturns or legal disputes, this period might extend. Seeking advice from a probate lawyer can help you navigate such challenges.
Sometimes, the estate can be complicated, especially where the Will is likely to be contested, where the Will is not clear, where money is left in a trust or where there is property abroad.
If there are a number of different types of assets involved such as a business, overseas accounts, multiple properties, and pensions, it can be difficult to accurately collect and distribute amongst beneficiaries.
Furthermore, in an age where a lot of information is now online, it is not unusual for people to have accounts with solely online financial institutions or own stocks and bonds, unknown to their families. If someone dies without disclosing these, it can be very difficult to track them down.
Executors are ultimately responsible for the correct administration of the estate and if there is an unreasonable delay or assets are not correctly distributed, then executors can be personally liable to the beneficiaries and creditors.
Navigating probate can be a demanding and time-consuming process, especially when you're also tasked with selling a property as part of the estate. Understanding the ins and outs of probate and how it relates to property sales is crucial, and that's where seeking expert advice becomes invaluable.
At GloverPriest, our experienced solicitors are here to guide you through every stage of the probate process, ensuring you have the support you need when managing both probate and property sales. We provide friendly, transparent legal advice tailored to your specific circumstances.
If you’re unsure about the probate process or need assistance with selling property in probate, trust our dedicated specialists in Wills, Trusts, LPA and Probate solicitors to explain the steps clearly and help you make informed decisions.
Let us simplify the probate journey for you and ensure the sale of the property is handled efficiently. Get in touch today.
Selling a house in probate can be complex, and it’s crucial to work with qualified professionals. In England and Wales, estate administration is not limited to regulated providers, which means some may operate without the necessary qualifications or experience.
At GloverPriest, we are proud to be authorised and regulated by the Solicitors Regulation Authority, ensuring that your property sale is handled with the highest level of expertise and integrity.
Yes, a beneficiary can potentially stop the sale of a probate property if there are valid legal grounds, such as disputes over the Will's interpretation or the executor's duties. In such cases, consulting a probate solicitor can provide clarity and help resolve disputes. If necessary, I might need to seek court intervention to determine the best course of action.
Probate is generally needed to sell a house if the property is solely in the deceased person's name, even if there's a Will. This legal process validates the Will and authorises the executor to handle the estate, including selling the property. However, probate might not be necessary for jointly owned properties or small estates, and a probate solicitor can confirm this.
In short, no, you cannot clear a house before probate. If a loved one or close relative passes away, you must obtain the grant of probate to settle the estate before you can clear the house or go through their belongings.
This is because the deceased’s home may contain valuable assets such as cash, jewellery, or antiques. The court aims to prevent these valuable items from being stolen or sold before probate is complete, as doing so could mean that the beneficiaries might not receive what they are entitled to under the Will.
Clearing a house before probate without proper legal authority can lead to serious consequences. If items are removed or sold prematurely, it could be considered theft, and the executor might face legal penalties.
However, there are some circumstances where you might be able to clear a house before probate. For example, if the house is considered a non-probate asset - meaning probate isn’t required because the property title has already been transferred into someone else’s name - or if the home is jointly owned, clearing the property may be permissible
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