Collecting estate assets
When you have received the Grant of Probate this will need to be taken (or posted) to the bank, investment company etc. along with the completed withdrawal form (if required). It generally takes 2-3 weeks for the funds to be received into the executors account (or receipt of a cheque if requested).
*Please note: you will need to set up an executors account to receive the estates assets – this should not be paid into your personal account.
Payment of liabilities and expenses
Liabilities that usually arise during the probate and administration process are generally incurred as follows:
- Liabilities that were outstanding at the date of passing away or due soon thereafter
- Expenses incurred during the probate and administration period
*It is important to note that before any inheritance is distributed to the beneficiaries that all liabilities and expenses incurred must be paid first.
Liabilities should be paid in the following order:
- Secured creditors – mortgages or loans secured on the property – if the property is not being sold and there is no joint mortgagee then the outstanding mortgage will need to be redeemed from the estates assets
- Funeral Expenses
- Testamentary expenses – during the administration of an estate there will be expenses incurred for example, paying for death certificates, probate application fee, insuring the property, professional fees for valuations
- Wages – if the deceased was an employer
- Unsecured creditors for example, overdrafts, bank loans, credit and store cards
- Interest on secured loans
- Deferred debts for example, loans to friends or family
The above liabilities will be paid from the estate (if solvent)