Probate and Full Estate Administration: What Is the Difference?

Key Takeaways

• Where there is a valid Will, the executor’s authority comes from the Will itself. The grant of probate formally confirms that authority and provides the evidence many organisations require before allowing the executor to deal with particular assets. Some assets can be dealt with before the grant is obtained.
• Probate is only one part of estate administration. Significant work may take place before the grant is issued, including identifying and valuing assets, establishing the inheritance tax position and, where required, completing the relevant inheritance tax returns and paying tax.
• A solicitor can assist with the probate application alone, with the full administration process, or with both, and the right level of involvement depends on the size, complexity and circumstances of the estate rather than any fixed rule.
• Full estate administration typically takes between six months and a year to complete, and estates involving property, multiple beneficiaries, inheritance tax or overseas assets routinely take considerably longer than that.

The Short Answer

Probate is a legal document. Full estate administration is a legal process, and while the two are closely connected, they are not the same thing.

Where someone leaves a valid Will appointing an executor, the executor derives their authority from the Will. The grant of probate formally confirms that authority and provides evidence of it to banks, financial institutions, HM Land Registry and other organisations that may require it before allowing certain assets to be dealt with.

This does not mean that an executor can do nothing until the grant arrives. Some banks and other asset holders will deal with an executor without a grant, usually subject to their own value limits, and a considerable amount of estate administration can take place before the probate application is made.

In some estates, particularly those requiring a full inheritance tax return, a significant amount of the work has already been completed by the time the grant is issued.

What Is the Grant of Probate?

The grant of probate is a legal document issued by His Majesty’s Courts and Tribunals Service through the Probate Registry. Where there is a valid Will, it formally confirms the executor’s authority to deal with the deceased person’s estate.

The executor’s authority originates from the Will rather than from the grant itself. However, the grant provides formal evidence of that authority and will be required by many organisations before they will release funds, transfer investments or allow certain transactions to be completed.

Not every asset necessarily requires a grant. Some banks and other financial institutions will release funds without probate where the amount held falls within their own limits. These limits vary between institutions.

Where there is no valid Will, or no executor named in the Will who is able and willing to act, the document issued is called letters of administration rather than a grant of probate. In that situation, the administrator’s authority derives from the grant.

Who Is Entitled to Apply, and Who Decides?

Where there is a valid Will, the executor or executors named in it apply to the Probate Registry. If multiple executors are named, they can apply jointly or one can apply while the others formally reserve their right to act later. If an executor has died, renounced their role or is otherwise unable to act, the remaining executors may be able to proceed.

Where there is no valid Will, or no executor available, the right to apply follows the order of priority set out in the Non-Contentious Probate Rules 1987. In broad terms, the person with the highest entitlement to the estate will usually have priority to apply for letters of administration.

The Probate Registry itself does not investigate every aspect of an estate in depth. However, that should not be confused with the amount of work that may need to be completed before an application for probate can be made.

The estate must first be identified and valued and its inheritance tax position established. Where required, a full IHT400 inheritance tax account must be completed and submitted to HMRC. If inheritance tax is due, some or all of the required tax will normally need to be paid before probate can be granted.

For estates requiring a full IHT400, establishing asset values, identifying liabilities, considering lifetime gifts and reliefs, completing the return and arranging payment of tax can be a substantial and time-consuming part of the administration.

What Happens If Someone Disputes Who Should Administer the Estate?

If a person believes the Will is invalid, that the named executor is unsuitable, or that they have a prior claim to administer the estate, they can enter a caveat at the Probate Registry. This prevents the grant being issued while the dispute is live and gives the interested party time to take legal advice and, if necessary, pursue the matter through the courts.

Contentious probate is a distinct area of law. If you are facing a disputed estate or a caveat has been entered, our news article What Is Contentious Probate? explains the process in more detail. The grant cannot be issued until the caveat is removed or the dispute is resolved.

The Difference Between Getting Probate and Administering an Estate

Receiving the grant formally confirms the executor’s authority and allows them to prove that authority to organisations that require it. However, it is only one stage in the much wider process of administering an estate.

A significant amount of estate administration may already have taken place by the time the grant is issued. Executors may have identified and valued the deceased’s assets, contacted financial institutions, established liabilities, dealt with inheritance tax and, where necessary, completed a full IHT400.

For some estates, obtaining the grant can itself be one of the most time-consuming parts of the process and may take longer than the work required after the grant has been issued.

Once the grant has been obtained, the executor can proceed with transactions for which formal proof of authority is required. This can include collecting assets, selling or transferring property, dealing with investments, settling debts and outstanding tax liabilities, preparing formal estate accounts and ultimately distributing the estate to the beneficiaries named in the Will.

The scope of the work depends entirely on the estate. A straightforward estate with modest savings, no property and two beneficiaries is a very different proposition from one involving a property sale, multiple beneficiaries, inheritance tax and business assets.

If the estate includes property, What Happens to a House When Someone Dies? addresses the specific mechanics of that process. Where a business is involved, What Happens to a Business When the Owner Dies? covers sole trader, partnership and company share scenarios.

Grant Only, or Full Administration?

A solicitor can assist with the probate application alone, with the full administration process, or with both.

Grant-only services may suit estates where the executor is confident managing the administration themselves. However, the amount of work involved in obtaining the grant can vary significantly. A straightforward excepted estate is very different from an estate requiring a full IHT400, detailed valuations and payment of inheritance tax before the application can proceed.

Where the estate is more complex, or where the executor does not have the time, proximity or experience to manage the process, instructing a solicitor to handle the full administration is worth considering carefully.

For executors who want to understand the risks involved in managing the process themselves, our article Complicated Probate: A Guide for Executors sets out where the common mistakes occur and how to avoid them.

It is also worth understanding what instructing a solicitor does and does not change. The executor remains responsible for the administration of the estate. The solicitor acts on their behalf and carries out the agreed work rather than replacing the executor or assuming their responsibilities.

How Burt Brill & Cardens Can Help

Burt Brill & Cardens act for executors and families across Brighton and Sussex at every stage of the probate and estate administration process, from the initial application through to final distribution. Whether you need help obtaining the grant, support with the full administration, or advice at a specific point in the process where things have become complicated, the team can advise on the right level of involvement from the outset.

Contact the team on 01273 604123 to discuss your situation. Alternatively, you can reach us by email at enquire@bbc-law.co.uk or make an enquiry.