Probate and Estate Administration: What’s the Difference?
When someone dies, the terms probate and estate administration are often used as though they mean the same thing. They are closely connected, but they describe different parts of dealing with a person’s affairs after death.
In simple terms, probate is the legal authority that may be needed to deal with certain assets, while estate administration is the wider process of identifying, collecting, managing and distributing the estate.
Understanding the difference between probate and estate administration can help executors and families know what responsibilities are involved and when legal support may be useful.
What Is Probate?
Probate is the process of obtaining legal authority to deal with the estate of someone who has died.
Where there is a valid Will and an executor is appointed, the relevant document is normally a Grant of Probate. The executor’s authority originates from the Will, but the grant provides formal evidence of that authority to organisations such as banks, investment providers and other asset holders.
If there is no valid Will, the appropriate person may instead need to apply for Letters of Administration. The person dealing with the estate is then known as an administrator.
What Is Estate Administration?
Estate administration is the complete process of dealing with a deceased person’s financial and legal affairs.
It usually begins before probate is obtained and continues after the grant has been issued. Probate and estate administration therefore overlap, but probate represents only one stage of the wider administration process.
Depending on the estate, administration can include:
- Identifying the deceased’s assets and liabilities
- Obtaining valuations for property, savings and investments
- Checking the Will and identifying beneficiaries
- Establishing whether Inheritance Tax is payable
- Submitting information to HM Revenue & Customs where required
- Applying for the Grant of Probate or Letters of Administration
- Collecting or transferring assets
- Selling or transferring property
- Settling debts, tax and administration expenses
- Preparing estate accounts
- Distributing the remaining estate to beneficiaries
Probate and Estate Administration: What Is the Main Difference?
The main difference is scope.
Probate is concerned with obtaining the formal authority needed to deal with certain assets. Estate administration covers the entire process of managing the deceased’s estate, from gathering initial information through to final distribution to beneficiaries.
A useful way to think about probate and estate administration is that probate may be one step within estate administration rather than the whole job.
Do You Always Need Probate?
No. Probate is not required in every case.
Whether a Grant of Probate or Letters of Administration is needed depends on the assets held and the requirements of the organisations holding them.
Some financial institutions may release lower-value assets without a grant, while property held solely in the deceased’s name will generally require formal authority before it can be transferred or sold.
The requirements can therefore differ considerably from one estate to another.
What Happens Before a Probate Application?
A significant part of probate and estate administration may take place before the application is submitted.
The personal representatives will normally need to identify the estate’s assets and debts, estimate its value and determine the Inheritance Tax position.
If the estate is not an excepted estate, fuller information may need to be provided to HM Revenue & Customs before the probate application can proceed.
If Inheritance Tax is due, payment may also need to begin before the grant is issued.
This means obtaining probate is not always the first task an executor will complete.
What Happens After Probate Is Granted?
Receiving the grant does not mean the estate has been fully administered.
Once probate has been granted, the executor can use the document where required to collect funds, transfer investments, deal with property and complete other transactions.
Outstanding debts, expenses and tax liabilities must also be dealt with before the estate is distributed.
The executor should then prepare a clear record of the estate’s assets, liabilities, income, expenses and distributions.
Once the administration is complete and it is safe to do so, the remaining estate can be distributed to the beneficiaries.
How Long Do Probate and Estate Administration Take?
There is no single timeframe that applies to every estate.
GOV.UK currently states that a Grant of Probate or Letters of Administration is usually issued within 12 weeks after an application is submitted, although it may take longer where further information is required.
That relates only to obtaining the grant.
Full probate and estate administration can take considerably longer because executors may also need to deal with:
- Property sales
- Inheritance Tax
- Multiple beneficiaries
- Overseas assets
- Business interests
- Outstanding debts
- Disputes involving the estate
Arlingsworth’s published information notes that the administration of a simple estate may typically take around nine to twelve months, while more complex estates can take substantially longer.
Can You Apply for Probate Yourself?
Yes. An executor or administrator can often make a probate application without instructing a solicitor.
However, obtaining the grant and administering the estate are separate responsibilities.
Someone who is comfortable making the probate application may still want professional support with tax, property, estate accounts or distributions.
Legal advice can be particularly useful where the estate includes substantial assets, overseas property, business interests, complicated tax issues, uncertainty surrounding the Will or disagreement between beneficiaries.
Do You Need a Solicitor for Full Estate Administration?
There is no general requirement to use a solicitor.
However, professional assistance with probate and estate administration can reduce the administrative burden on executors and help them understand the legal responsibilities involved.
A solicitor may be instructed only to obtain the grant, to advise on a particular issue or to deal with the full administration of the estate.
This allows executors to choose the level of assistance that is appropriate for the circumstances.
Probate and Estate Administration Solicitors in Brighton and London
Dealing with an estate can involve considerably more than completing a probate application.
Arlingsworth Solicitors assists executors, administrators and families with probate and estate administration, including applications for grants, estate assets, property transfers, beneficiary matters and dealings with HMRC.
With offices in Brighton and London, our private client team can provide support with a specific stage or assist throughout the administration process.
If you are unsure whether probate is required, or whether you would benefit from support with the full administration of an estate, contact Arlingsworth Solicitors to discuss the circumstances.
Frequently Asked Questions
Is probate the same as estate administration?
No. Probate is concerned with obtaining formal authority to deal with certain estate assets, while estate administration is the broader process of identifying assets, paying liabilities and tax, collecting the estate and distributing it to beneficiaries.
In other words, probate and estate administration are connected but are not the same process.
Can estate administration start before probate?
Yes. Valuing assets, identifying liabilities, checking Inheritance Tax requirements and contacting financial institutions can all form part of estate administration before a grant is issued.
Can an executor distribute money before probate?
Executors should be cautious about distributing an estate before all assets, debts, taxes and potential claims have been established.
Distribution should normally take place only when the executor is satisfied that the estate can safely be distributed.
What is the difference between a Grant of Probate and Letters of Administration?
A Grant of Probate is generally issued where there is a valid Will and an executor is acting.
Letters of Administration are generally issued where someone dies without a Will. There are also circumstances where Letters of Administration with the Will annexed may be required.
When should I speak to a probate solicitor?
Consider legal advice if you are unsure about the probate application, Inheritance Tax, estate property, overseas assets, the validity or interpretation of a Will, beneficiary disputes or your responsibilities as an executor or administrator.
