Do I Need a Letter of Administration or a Grant of Probate?

Understanding the grant of representation process, and particularly whether you need letters of administration or a grant of probate, can help to ease some of the stress you may be facing following the death of a loved one. If you have been named the executor of someone’s will, you will need to answer this question before you begin managing their estate.

In most circumstances, when someone dies in England and Wales and their estate exceeds a value of £5,000, the deceased’s personal representatives must obtain the legal authority to collect and manage the estate. This authority is known as a grant of representation, but there are two types, which can make the process confusing.

Below, the expert probate solicitors at Percy Hughes & Roberts detail the two types of grant, which grant applies to what circumstances, the difference between a letter of administration and a grant of probate, and how to apply for both. If you have any other questions relating to probate, you can get in touch with our Wirral-based expert probate solicitors by completing the enquiry form on this page, or by calling 0151 666 9090.

What is a grant of representation?

When someone dies, all of the personal assets that they owned form part of their estate. These assets include property, bank accounts, investments, and other personal belongings. If the value of this estate - including the values of all of these assets added together, minus any liabilities, debts or taxes - exceeds £5,000, you will usually need a grant of representation to manage it.

Confusingly, one of many different types of grants of representation can be issued to you, depending on the situation. The two most common are:

• Grant of probate

• Letters of administration

Once one of these documents has been issued, you can begin managing the estate. It is usually needed to access the deceased’s bank accounts and other investments, and to transfer the ownership of any property. As such, understanding which grant you need is important when dealing with your loved one’s estate and avoiding any delays in the probate process.

What is the difference between probate and a letter of administration? 

The main difference between letters of administration and a grant of probate is related to whether the deceased had a valid will or not. A grant of probate is only issued to the named executors of a will, if the deceased had one. On the other hand, if the deceased died without a will, letters of administration can be issued to the person who is entitled to inherit under the rules of intestacy, or a representative of the estate who can manage this process. In certain circumstances, where there is a valid will but no executor who is willing to or capable of acting, or no surviving executors, a grant of letters of administration with will annexed will be issued.

What is a grant of probate?

When someone makes a will, they should appoint at least one executor. An executor needs the power to control the deceased’s assets, and this is provided by the grant of probate. Their duties include transferring funds, disposing of any assets, paying debts, and sharing any money or property between beneficiaries.

Most financial institutions will not allow an executor to access assets if they have not obtained a grant of probate first. This is legal confirmation that the will is valid and has been officially registered by the court.

What are letters of administration for an estate?

Similar to a grant of probate, the letters of administration is a grant of representation issued by the court allowing the named individual to administer the estate. The main difference here is that no specific person will have been appointed to manage the estate, because there is no valid will.

In this scenario, the court does not automatically assign an authority to manage the deceased person’s affairs. It is up to family members to apply to the court for letters of administration. That may be the person who is entitled to inherit under the rules of intestacy, their guardian if they are under 18, or a professional representative.

The duties of the executor and the administrator are essentially the same, with the only difference being in how they are appointed.

What are the circumstances under which you might need either document?

In most scenarios, you will need either a letter of administration or grant of probate to deal with an estate, especially if it includes property. There are occasions where you may not need either, however.

The most common of these scenarios is where the deceased’s estate is valued at £5,000 or less, or where the person who died held their assets jointly with another person. In these cases, you will not need a grant of representation to get access. Having said this, banks, insurance companies and other financial institutions all set their own limits for probate. These limits can vary from £5,000 to £50,000.

Generally speaking, if the value is less than £5,000, you should be fine without a grant of probate or letters of administration. You will also not need probate or letters of administration if the deceased was insolvent and had more debt, tax, and other expenses than assets.

Calculating the value of the estate can be complicated. Property owned only by the deceased or with another individual as “tenants in common” will form part of their estate, and therefore the value of that property should be included. If they owned a property with another person as a “joint tenant”, however, this will not form part of their estate, and the property will pass directly to the other owner.

In addition to this, if an asset is held in a trust, it should not contribute any value to the estate. Life insurance policies, for example, are written in trust for the benefit of others and payable to the named beneficiary. This would not form part of the estate.

Once you have determined whether any property or financial schemes will form part of the estate, you then have to determine the value of all other assets as at the date of death, while taking into account any debts or taxes that need to be paid. While you only need to estimate the value in the first instance, it is vital that your estimate is as close as possible to the value of the estate. If the estate’s value exceeds the Inheritance Tax threshold of £325,000, you will need a more accurate calculation. Our expert probate solicitors can advise on this.

How to apply for a letter of administration

If a loved one has died without a valid will or without naming any executors who can undertake the role, you must decide whether you are the appropriate person to undertake the role of administrator. If you intend to take on this responsibility, you will need to apply to the court for letters of administration, but there are other steps you should complete first.

First, you need to register the death within five days unless the involvement of a coroner is required. Then, you need to ascertain whether Inheritance Tax is payable. You will then be able to access a Form PA1A from the UK government website, and fill in all the details of the deceased and the estate. It is vital that all of the information is correct. We advise seeking assistance from a solicitor with this process.

How to apply for a grant of probate

If the deceased had a will and you are a named executor, there are a number of things you will need to do before applying for a grant of probate. First, you will have to register the death within five days, and then try to find the person’s original will. This will tell you who has been named as the executor, which will determine who is responsible for the next steps.

After this, the executor will have to value the estate by contacting banks, building societies, utilities companies and pension providers with which the deceased held accounts, and calculating the value of any property or assets the person owned. Upon valuing the estate, you will have to calculate if there is any Inheritance Tax to pay and fill in any relevant tax forms.

When the death has been registered, the estate has been valued, and you have determined whether Inheritance Tax is owed, you should then be in a position to complete a probate application form, which you can find on the government website.

Again, this process can seem straightforward but there are pitfalls to be aware of. It is best to get an expert probate lawyer to assist you, so that there are no legal issues or mistakes that could affect the estate administration process further down the line.

Getting expert legal help to apply for probate or letters of administration

Many executors and administrators go through this process without a solicitor. It is perfectly legal to do this, but if the estate is complex, it is best to get legal advice and avoid any potential pitfalls. For example, we recommend getting legal advice if:

• The terms of a will are not clear

• Part of the estate is to pass to children under the age of 18

• The deceased has left money or property in a trust

• The deceased owned land or property abroad

• The deceased owned a business

• The will may be disputed

Executors may be personally liable for any mistakes when dealing with Inheritance Tax or problems with distributing assets after a grant of probate has been issued. If there are any problems with how the estate has been dealt with, such as an unreasonable delay or a misuse of legal powers, you will need legal assistance, but it is best to avoid these problems by working with a solicitor from the outset. Legal fees can sometimes be paid for from the estate of the deceased, which can also help to save on legal costs that may arise later.

How long does it take to get a letter of administration?

The time it takes to obtain a letter of administration varies, depending on how complex and expansive the estate is and whether any issues arise during the application process. The process will usually take longer if the estate involves multiple properties, foreign assets, or if there are any disputes or uncertainties raised by the beneficiaries.

Once you have made the application, the Probate Registry conducts necessary checks to verify your information. Incomplete or inaccurate applications can lead to delays, as the Probate Registry may request additional information or clarification.

If Inheritance Tax is due on the estate, this must be paid before the letter of administration can be granted, unless other arrangements have been made with HMRC. This can add additional time to the process, especially if there are delays in accessing the necessary funds to cover the payment.

How can Percy Hughes & Roberts help? 

At Percy Hughes & Roberts Solicitors, we have a team of dedicated probate solicitors who are ready to help you resolve your query or issue relating to this area of the law as quickly and effectively as possible.

If you need assistance with obtaining letters of administration or a grant of probate, or simply want advice on dealing with the probate process, our wills, trusts, and probate solicitors have a wealth of experience. They can help you through what can be a difficult time, and support you to deal with estate and trust property and complex estates more efficiently.