how to obtain a letter of administration - diy probate forms€¦ · how to obtain a letter of...

Contains timely and useful information about:

1. What a ‘Letter of Administration’ is and why you need one. 2. How To Apply For a Letter of Administration Quickly & Easily 3. How to deal with someone’s finances when there isn’t a Will. 4. What the ‘Intestacy Rules’ are and why they are so important where there isn’t a Will. 5. Letter of Administration options.

By Phil Weston

How To Obtain a Letter of Administration And What To Do When Someone Dies Without Leaving A Will

How To Obtain a Letter of Administration


And What To Do When Someone Dies Without Leaving A Will

PHIL WESTON

© 2011- 2014 Philip Weston. All rights reserved.

Any unauthorised use, sharing, reproduction or distribution of these materials by any means, electronic, mechanical, or otherwise is strictly prohibited. No portion of these materials may be reproduced in any manner whatsoever, without the express written consent of the publisher

Disclaimer: While all attempts have been made to verify information provided in this publication, neither the author nor the publisher assumes any responsibility for errors, omissions or contradictory interpretation of the subject matter herein. This publication is not intended to be a source of legal or accounting advice. The advice and strategies contained herein may not be suitable for every situation. The purchaser or reader of this publication assumes responsibility for the use of these materials and information. If professional assistance is required, the services of a competent professional person should be sought. Neither the author or the publisher shall be liable for damages arising herefrom. The fact that a an organisation or website is referred to in this work as a citation and/or a potential source of further information does not mean that the Author or the publisher endorses the information the organisation or website may provide or recommendations it may make. Further, readers should be aware that internet websites listed in this work may have changed or disappeared between when this work was written and when it is read. Any perceived slights of specific people or organisations are unintentional. This information has been produced by the author to act as general guidance. It does not replace the need to take professional advice. Administration of an estate can be complex and creates significant responsibilities for the person who is undertaking this role. Specific issues may arise which are outside the scope of this guide. The information in this guide is for general guidance only and should not be considered to be full or comprehensive advice in relation to the administration of estates. Reliance on the guide is entirely at the reader’s own risk. This book does not replace the need to take professional legal advice. The author accepts no responsibility for any errors or omissions. The author does not accept responsibility for loss occasioned to any person acting, or failing to act, as a result of the content of this book. All financial figures and information are believed to be correct as of March 2014.

Published by: Berkeley Weston Ltd 39 Castle Street Leicester LE1 5WN

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CONTENTS

INTRODUCTION TO LETTERS OF ADMINISTRATION ................................................................................ 3

What is a ‘Letter of Administration’? .................................................................................................. 3

Why is a Letter of Administration needed? ........................................................................................ 3

When a Letter of Administration may not be required ...................................................................... 4

Sample Letter of Administration ......................................................................................................... 5

IDENTYFYING THE LEGAL NEXT OF KIN ................................................................................................... 6

WHO INHERITS IF THERE ISN’T A WILL.................................................................................................... 7

HOW TO OBTAIN LETTERS OF ADMINISTRATION ................................................................................... 8

THE FAST TRACK LETTER OF ADMINISTRATION SERVICE ...................................................................... 10

FULLY MANAGED LETTER OF ADMINISTRATION SERVICE .................................................................... 15

How much does it cost? .................................................................................................................... 15

WHAT NEXT? ......................................................................................................................................... 16

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SECTION I

INTRODUCTION TO LETTERS OF ADMINISTRATION When someone dies without leaving a Will one of the legal requirements is to obtain a ‘Letter of Administration’.

The responsibility for dealing with the Letter of Administration lies with the legal next of kin (see section II)

The next of kin may apply to use the Fast Track Letter of Administration Service. This service is aimed at individual’s who want to deal with the Letter of Administration process themselves without a solicitor. This option is administered by Berkeley Weston Ltd Legal Services. Alternatively, the next of kin may choose to use a Fully Managed Letter of Administration Service. With this option all of the legal and financial requirements are handled by an expert from start to finish. Berkeley Weston Ltd offer this as an option to clients, as do most firms of solicitors with a probate department.

What is a ‘Letter of Administration’? It is a formal legal document issued in the form of a court order. A Letter of Administration is granted by the Probate Registry, which is a part of the High Court.

So, it is not a “letter” as you and I would normally use the word. A Letter of Administration is actually an official legal document issued by a court when someone dies without a Will.

Why is a Letter of Administration needed? It is required to gain legal authority to handle a deceased person’s assets, such as bank accounts, investments, property and so on, where there is no Will.

Such assets are ‘frozen’ after a death until a Letter of Administration is granted.

Organisations such as banks need to see the Letter of Administration before they will release the deceased person’s money and close accounts.

It gives the next of kin the power to handle the deceased person’s estate and ensure the inheritance ends up in the right beneficiaries hands.

Think of it then as the passport the next of kin need to handle the deceased person’s finances and property.

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When a Letter of Administration may not be required There are some instances when a person dies and Probate is not required to deal with their estate:

1. Estates worth less than £5,000

A Letter of Administration shouldn’t be required if the amount left in the bank, building society etc is less than £5,000 in value.

In practice, most financial institutions use their own powers of discretion if the amount involved is less than £15,000 in value. In these cases, the financial institution will confirm whether they need a Letter of Administration to close the account.

2. Assets owned jointly

A Letter of Administration is not required to deal with assets owned jointly, e.g. a joint bank account.

Where this is the case, upon the death of one of the joint owners, the asset automatically becomes the property of the surviving joint owner(s).

3. Assets that do not form part of the estate

For example, ‘death in service’ benefit from a pension scheme. In this case the Pension Administrator would normally pay the amount directly to the person named on a pension ‘nomination of benefits’ form.

The relevant organisation (in this example the deceased’s employer) will confirm whether this is the case.

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Sample Letter of Administration

A Letter of Administration obtained using the Fully Managed Letter of Administration Service from Berkeley Weston Ltd

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SECTION II

IDENTYFYING THE LEGAL NEXT OF KIN Only certain people are legally permitted to apply for a Letter of Administration. There is a strict legal ‘pecking order’ of who can apply, based on their relation to the deceased person.

To identify that person move down the list below. The person(s) that appears highest up the list is responsible for applying for the Letter of Administration:

1. The husband, wife or registered civil partner (not unmarried or “common law” partners). ↓ 2. Children. (If the deceased was unmarried or divorced and had children under the age of 18, the surviving parent of the children is responsible for dealing with the Letter of Administration requirements). ↓ 3. Grandchildren. ↓ 4. Parents. ↓ 5. Brothers and sisters. ↓ 6. The children of brothers and sisters (i.e. nieces/nephews). ↓ 7. Brothers and sisters of the half blood (they have just one parent in common) of the deceased. ↓ 8. Grandparents. ↓ 9. Uncles and aunts.

Once the legal next of kin has been identified, that individual must take responsibility and decide how to proceed with the Letter of Administration stages (see section IV). If the next of kin has any questions about their options, or what to do next, call Berkeley Weston Ltd on 0116 2795044 for free telephone advice from a friendly, knowledgeable expert.

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SECTION III

WHO INHERITS IF THERE ISN’T A WILL The law (Section 46 of the Administration of Estates Act 1925) sets out who inherits what when someone dies without leaving a Will - called the “Intestacy Rules”:

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SECTION IV

HOW TO OBTAIN LETTERS OF ADMINISTRATION The responsibility for dealing with the Letter of Administration requirements rests with the deceased person’s next of kin, or their appointed legal representative.

Listed below are the 16 steps involved from start to finish.

All of these steps are completed for the next of kin with the Fully Managed Letter of Administration Service, administered by Berkeley Weston Ltd.

Steps 4, 5 and 6 are included with the Fast Track Letter of Administration Service. Instructions how to complete the remaining steps are included in the Letter of Administration “Kit”, available as a free optional extra for customers of the Fast Track Service.

The steps required to obtain Letters of Administration and finalise the estate are as follows:

1. Identify the legal next of kin. This person has to be aware of his/her legal responsibilities and understand what is involved.

2. Notify interested parties of the deceased’s death e.g. employer, social services, financial institutions, utility companies and insurance companies. This should be done in writing, enclosing an official copy of the death certificate, as soon as possible after the death has occurred.

3. Value the deceased person’s estate. Assets owned by the deceased person solely in his/her sole name and assets owned jointly with someone else need to be valued and recorded.

4. Complete the inheritance tax form(s) and pay any tax due. It is a mandatory requirement to complete an inheritance tax return before probate can be issued, even if the estate is of a modest size and well below the inheritance tax threshold (currently £325,000 2014/15).

5. Complete the Letter of Administration application paperwork and gather supporting documents.

6. Submit the application paperwork to the Probate Registry.

7. Sign and return the Oath (issued by the Probate Registry). Once the application paperwork has been received by the Probate Registry Office, they will send an acknowledgement letter and instructions for signing the Oath.

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8. Receive the original Letter of Administration from the Probate Registry

and check for errors 9. Place the statutory legal notices in the London Gazette and other relevant

publications as appropriate. 10. Register the Letter of Administration with interested parties 11. Collect assets of the estate 12. Pay debts and liabilities of the estate 13. Transfer ownership of deceased’s property, or share of property if owned

jointly, to the beneficiaries (if property not going to be sold) 14. Finalise income tax and/or capital gains tax 15. Prepare estate accounts 16. Settle residuary estate in accordance with the Intestacy Rules

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SECTION V

THE FAST TRACK LETTER OF ADMINISTRATION SERVICE Help is available in obtaining Letters of Administration through the Fast Track Service, administered by Berkeley Weston Ltd Legal Services. As well as ensuring the Letter of Administration is obtained in the shortest possible time, one of the main functions of this service is to ensure correct completion of the forms, to reduce the prospect of the next of kin making a mistake. It appeals to individuals who want to obtain a Letter of Administration for a lower cost than a fully managed service. The individual completes all of the straightforward administrative tasks such as dealing with banks, building societies, utility companies and the like. The Fast Track Service includes completion of the legal application paperwork and inheritance tax forms. The entire Letter of Administration application process is completed for the individual. Once the Letter of Administration is obtained, the next of kin has to complete all of the steps to finalise the estate (see steps 8-16 in section IV) on their own. Service is provided in a highly confidential and speedy manner. Upon receipt of signed forms, the probate application paperwork is usually filed with the Probate Registry Office the same day. The Fast Track Service is open to customers referred by solicitors and other professionals such as accountants and financial advisors, but does not require this. All it requires is that a signed confidential information form be completed by the customer and emailed or posted to Berkeley Weston Ltd. The Fast Track Service provides no legal advice. Only administrative functions are provided. To qualify for the Fast Track Service the person applying must be the legal next of kin and the estate must be “excepted” for inheritance tax purposes (i.e. no inheritance tax due or IHT400 form involved)

The Fast Track Service includes the following services to its customers:

1. Identifies the correct inheritance tax form(s) to complete. 2. Checks the estate information is present and correct. 3. Completes the ‘Return of estate information’ form (IHT205) 4. Completes the ‘Claim to transfer unused nil rate band’ form

(IHT217), if required. 5. Completes the Letter of Administration Application Form (PA1)

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6. Forwards the application paperwork to the next of kin with instructions for signing.

7. Prepares checks for payment of probate fees to Her Majesty’s Courts and Tribunal Service (HMCTS).

8. Forwards the application paperwork and fee for filing at the correct Probate Registry Office.

Berkeley Weston Ltd has been in business for 10 years and has helped more than 5,000 people.

If you’d like to use the Fast Track Service, and you want fast, one day service, complete the “confidential information form” included in this chapter. Or, if you prefer or have any questions, call 0116 2795044

Free Letters of Administration Kit

As a free optional extra to customers of the Fast Track Probate Service Berkeley Weston Ltd makes available the following Kit:

1. Comprehensive instructions on what to do after the Letter of Administration is obtained.

2. Vinyl covered Record Book to protect all records and documents. 3. A valuable, time-saving CD containing pre-written letters to load onto your PC

or Mac. 4. Instructions how to settle liabilities of the estate. 5. Instructions how to deal with estate beneficiaries to reduce the prospect of a

dispute arising. 6. Estate Ledger to keep and accurate and complete record of estate monies. 7. Sample estate accounts. 8. Letters and forms to reclaim income tax. 9. Instructions and forms how to deal with the deceased’s property. 10. Instructions and forms covering the placement of Statutory Notices. 11. Instructions how to distribute the inheritance money to the correct

beneficiaries in accordance with the intestacy rules. 12. Flowcharts and checklists covering the entire process from start to finish.

The above optional and essential material sells online for £116.40, but is free to customers of the Fast Track Service.

The fee upon acceptance onto The Fast Track Service is £395 .00 + VAT (£474.00 including VAT).

A fee of £105 is payable to the Probate Registry (HM Courts and Tribunal Service) for processing all Probate Applications, when submitted by an individual.

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HMCTS Probate Fast Track Probate Service Fee TOTAL Registry Fee (including VAT) £105.00 £474.00 £579.00 Optional Probate Kit(rrp £116.40) FREE Total amount payable – including Letters of Administration Kit £579.00* * Prices and fees subject to change without notice.

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Fast Track Letters of Administration Service

Confidential Information Form

(To accompany completed ‘Assets and Liabilities Form’ and an official copy of the Death Certificate)

1. Your name & telephone number ___________________________ 2. Next of Kin Full Name(s) & Address

_______________________________________________________________________________________________________ ______________________________________________________________________________________________________

3. Next of Kin Telephone Number _____________________________ 4. Next of Kin Email address _________________________________ 5. Executor(s) occupation ___________________________________ 6. Next of Kin relationship to the deceased person ___________________ 7. Deceased person’s full name ________________________________ 8. Deceased person’s address _________________________________

____________________________________________________ 9. Deceased person’s marital status_____________________________

If married, the date of marriage _____________________________ If divorced, the date of divorce _____________________________

10. Was the deceased, or his/her immediate family, adopted? If Yes, please provide further details ________________________________________________________________________________________________________Any special comments or instructions ____________________________________________________________________________________________________________________________________________________________

I wish to apply for (please tick appropriate boxes):

� Fast Track Letter of Administration Service (fee £474 inclusive of VAT – payment not required until confirmation of acceptance issued by Berkeley Weston Ltd)

� Letter of Administration Kit - FREE for Fast Track Service customers (rrp £116.40)

I declare that I promise to pay the invoice for the Fast Track Probate Service after my application has been accepted and that neither Berkeley Weston Ltd or any of its employees have provided me with any legal advice. _______________________________ SIGNATURE

Return immediately to: Checklist: Berkeley Weston Ltd � Signed & Completed Confidential Information Form Business Box � Copy Death Certificate Oswin Road � Completed ‘Assets & Liabilities’ Form LEICESTER LE3 1HR


Letters of Administration Kit

Berkeley Weston Ltd will provide a complete probate “kit” that includes:

1. Comprehensive step-by-step instructions on what to do after the Letter of

Administration is obtained, to reduce the risk of the next of kin making a mistake.

2. A4 sized Record Book to protect all records and documents.

3. A valuable, time-saving CD containing Fill-in-the-blank letters to register the Letter of Administration with all interested parties.

4. Instructions how to settle debts and liabilities of the estate.

5. Instructions how to deal with beneficiaries of the estate to reduce the prospect of a dispute arising.

6. Estate Ledger to keep accurate and complete record of estate monies.

7. Sample estate accounts that the next of kin is required to prepare before settling the estate.

8. Letters and forms to deal with income tax requirements.

9. Instructions and forms how to deal with the deceased’s property.

10. Instructions and forms covering the placement of Statutory Notices.

11. Flowcharts and checklists covering the entire process from start to finish.

Overall, an essential and comprehensive “kit” to help individuals close a loved one’s estate where there isn’t a Will.

Free for Fast Track Letter of Administration Service Customers (rrp £116.40).

To receive your probate kit return the Fast Track Service Confidential Information Form and return this to:

Berkeley Weston Ltd Business Box Oswin Road LEICESTER LE3 1HR

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SECTION VI

FULLY MANAGED LETTER OF ADMINISTRATION SERVICE With this option the next of kin hands everything over to a professional, who will complete all of the work required from start-to-finish (see section IV for a list of the steps involved).

It is a solicitor-backed service for individuals who can’t commit to the time required to deal with all of the paperwork and legal procedures (estimated 30 hours for a straightforward estate).

This option is the least risky option for an individual as the legal representative takes on full liability for the estate. By not choosing this option, the individual must accept full legal and financial liability for the deceased person’s estate. This means personal funds may have to be used to correct any mistakes made in handling the estate.

This option is administered by Berkeley Weston Ltd Legal Services, who have over 10 years experience in this field, and have served over 5,000 clients.

In summary this option is most suited to individuals who:

Want to spend the bare minimum amount of time dealing with legal paperwork, tax forms, appearances at the Probate Registry Office etc.

Want to eliminate the risk of making a costly mistake that put personal funds at risk.

Want to obtain the Letter of Administration in the shortest possible time. Want certainty that the right inheritance has passed to the right beneficiaries

without unnecessary delays. Would rather have everything completed for them by an experienced

professional.

How much does it cost? Legal fees vary depending on who you choose as your legal representative, but fees start at around £2,000 for a straightforward estate up to around £5,000 for a larger estate with inheritance tax to pay.

When discussing a fee with your legal representative it is important to agree a fixed-fee up front, so that you know what the eventual cost will be. Some lawyers insist on charging an hourly rate (usually between £200-£300 per hour), meaning the client has no idea what the final cost will be.

The legal fees are usually paid from the proceeds of the estate after the Letter of Administration is obtained, meaning there shouldn’t be any fees to pay up-front.

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SECTION VI

WHAT NEXT? Now you should be clear on what a Letter of Administration is, why you need one and how to get one.

The next step is to put into action what you have learned today. None of the strategies and tips in this book will work unless you take action - today.

Knowledge is useless without action. Reading these pages alone and not taking action will have a similar effect to not reading them at all.

Right now most readers fall into 1 of 2 camps. Either:

1. They have a “gut instinct” on which option they want to take to get the Letter of Administration.

- OR –

2. They are overwhelmed by it all and aren’t sure how to proceed.

If you aren’t sure how to take the next step then call Phil Weston at Berkeley Weston Ltd on 0116 2795044 to get free advice.

Most people who need to obtain a Letter of Administration feel a lot happier after they have talked things through with a friendly expert. It will help:

Put your mind at ease

Provide instant answers to any burning questions that you have

Highlight some of the common pitfalls and how to avoid them

Help you decide on how to take the next step to get the Letter of Administration

Give you a clear plan of action how to deal with a situation where a loved one has died without a Will.

Get in touch today by calling 0116 2795044 or emailing [email protected]

Thanks for reading.

P.S. I’ve helped over 5,000 clients deal with their loved one’s estate and I would be delighted to help you too. Here’s what some of these people have written about me and the service offered by my legal practice:

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mailto:[email protected]


“I really cannot thank you enough for the excellent hard work you did dealing with Probate and my mum’s estate. Nothing was too much trouble, you gave endless superb support and did a lot of extra work to make sure we weren’t under any additional pressure. I cannot recommend you highly enough. Your future clients can be totally assured from day 1 that using your probate service is not only fantastic value but does everything your website says it does! I am so pleased we used you. You are truly a gentleman professional who really cares about his clients and produces that special level of service that is needed in times of difficulty and stress. Please pass this on to your future clients. “ John Eckersall, Cheshire.

“ We found your service via the internet and were at first a bit wary of using a company off the internet. A cousin had died and we did not have any idea of the procedures required to settle the estate. Our first contact was with Phil Weston by phone and after consulting other relatives it was decided to use the Service offered by Phil’s Company to administer the estate and obtain Letters of Administration for us. Phil was in constant contact throughout and he answered any questions we had and settled any expenses we incurred quickly and efficiently from the funds available. Once the property had sold he supplied us with the estate accounts straight away to confirm they were OK prior to the final settlement of the estate between the beneficiaries.

Throughout the process Phil Weston was always very helpful and efficient. If anyone is in a similar position and needs any help with regard to Letters of Administration and the settlement of an estate I would have no hesitation in recommending Phil Weston and his team as a first point of contact and to administer the estate.” Ian Rhoades, Cambridge

“I have nothing but praise for the courtesy, professional, efficient way that was shown to myself and my family during this very emotional and stressful time. It was such a relief to have the matter dealt with the utmost care and kindness.” Wendy Curran, London

“I started using Philip's company in 2009 so as to assist us in helping families make the right decisions & choice of company in dealing with their loved ones estate at a time of need. I have always found Philip to be very attentive to my clients wishes and afforded them the time to go through the process of understanding fully the legalities of Probate. If you are looking for someone with these qualities then Philip & his company are the right choice.” Gary Clugston, Harold White Funeral Directors, London

“I would like to say how much I admired your patience and professionalism in dealing with the various twists and turns that we had to contend with. You are very pleasant and impeccably honest. Please express my thanks to your various colleagues.” Dr Robin Waddell, Berkshire

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“Very efficient, we were kept informed of progress all the way through and all monies were dispatched quickly at the end of the process” Dianne Sirkett, Hertfordshire

“I would like to sincerely thank you for your friendly and efficient handling of this estate, which has taken a great deal of worry away from me. I was very worried about how to deal with the estate. Your company just took the whole problem out of my hands and dealt with it very professionally” Wendy Plant, Cheshire

“Phil, I would like to say a heartfelt thank you for an impeccable service from you and your company. You have been thorough, efficient and consistent throughout to enable the completion of Michael’s estate. I couldn’t have asked for anymore from you and I would certainly recommend you to anyone who needed the use of a first class probate service. All the best.” Yvonne Gardner, Dereham, Norfolk.

“All the stress was taken away. Always available to answer any questions” Jacqui Smith, London

“From the first telephone call to make the enquiry regarding probate we were treated with great courtesy and friendliness. All the questions we had during the probate process were dealt with promptly and professionally.” Nicholas Carter, Southampton

“I would like to put forward a recommendation for your company. You have been extremely helpful, whether it be telephone calls or e-mails, by replying promptly and with as much information as you could have. You have kept all of my family well informed every step of the way and have been most generous in answering what were sometimes silly questions. I would thoroughly recommend you and your services to anybody. Many thanks again for all your help.” Audrey Rourke, Edinburgh

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About the Author

Phil Weston is an experienced legal advisor, author and speaker specialising in helping people deal with the financial and legal requirements after a death.

Phil studied Law at De Montfort University, Leicester. During his corporate career, he acted as a consultant for The Law Society, Bradford & Bingley Building Society, Britannic Insurance.

Phil founded his legal practice in 2004. Since then, Phil and his team have helped thousands of clients obtain Letters of Administration and Probate, enabling them to achieve a simple and straightforward resolution to their loved one’s estate. In the last 12 months alone, Phil and his team of legal experts have helped over 900 clients with their Letter of Administration requirements following the death of a loved one.

Berkeley Weston Ltd HQ in Leicester. Phil Weston

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