First, you need to find your father’s will. If you don’t know where it is, contact his solicitor who should be aware of its whereabouts. The will should name the person or people your father nominated to execute his estate. The executors are likely to include you or one of your siblings.
It is the duty of the executors to ensure the terms of the will are met, all assets distributed as specified and all taxes paid. This process is known as probate and usually takes about four months, although it could take longer if the will is particularly complicated or unclear.
We have the will and my sister and I are joint executors. We looked up the whole probate thing on the internet and it looks horribly complicated, with a long form to fill out and loads of paperwork to gather together. Dad wasn’t the most organised of people when it came to filing things and it just looks like a big headache. Is there any simple way of doing this?
Advertisement
The probate process is standard and unfortunately, you can’t take any short cuts. If you decide to go ahead with it yourself, you will find the staff at the Probate Office very helpful and if you follow the procedure to the letter, you shouldn’t have any problems.
There is a simpler option, however, and that is to retain a solicitor. This usually costs about 3% of the value of the estate, although this is negotiable when it comes to larger estates so you may have some leeway there. Bear in mind, however, that you will still have to furnish the solicitor with all the relevant paperwork you can find relating to your father’s assets, such as bank statements, insurance policy documents, share certificates and so on.
Advertisement
We would certainly be happier to pay a solicitor to deal with the nitty-gritty of it all. Are there any other costs we are likely to bear before this is all over and done with? And what about the inheritance tax?
All of your father’s assets must be valued as at the date of death so valuation fees will apply. These are likely to be about 0.2% of the value of the estate. If any of the costs involved with the probate process are a problem for you, you should find your bank will be happy to arrange an overdraft for this purpose.
As for inheritance tax, that must be paid before the assets of the estate can be distributed and a completed and cleared Revenue affidavit must be obtained before probate is granted. It is a self-assessment tax but the solicitor should be able to prepare and file the return on behalf of you and your siblings. The tax must be paid within four months of the valuation of the estate’s assets. If it is not paid in time, interest is charged at 1% per month or 12% annually.
Advertisement
I know we have fairly high tax-free thresholds but each of us could well be liable for tens of thousands of euros in inheritance tax and I just can’t see how I am going to be able to pay my bill, let alone how my younger brother will manage, considering he has just come back from a year abroad and doesn’t even have a job.
There’s no need to panic. The tax is usually paid out of the estate although some assets may have to be sold off in order to meet this cost. Once the tax is paid, any other debts and costs, such as funeral expenses or personal bank loans in your father’s name must be settled. Once probate is complete and you have received permission from the Probate Office to administer the estate, you may distribute the remaining assets.