What is probate & can you sell a house in it?

When someone passes away, managing their estate can be a complicated and emotionally charged process, particularly when it involves selling inherited property.

One of the key legal procedures in this process is probate, which grants authority to an executor or administrator to handle the estate’s assets, including selling a house.

The process can be lengthy and involves multiple steps, such as identifying assets, paying Inheritance Tax and eventually distributing the remaining estate to the beneficiaries.

In this article, we will explore the probate process in detail and discuss how and when you can sell a probate property, while also offering insights into the most efficient methods for doing so.

What is probate?

Probate is the legal process of managing and distributing a deceased person’s estate. This process involves confirming the validity of their will and authorising someone — typically the executor named in the will — to handle the estate’s assets. If no will exists, a close family member may apply to administer the estate.

The executor or next of kin will need to apply for a legal document, either a Grant of Probate (if there’s a will) or a Grant of Letters of Administration (if there’s no will), to prove their right to manage the estate. These documents give the executor or administrator the legal authority to:

• Settle any outstanding debts.

• Sell, transfer or distribute assets such as property, money and personal belongings.

• Sign contracts related to the estate such as selling a house.

The probate process can take several months, especially if taxes are owed on the estate. Once the Grant of Probate or Grant of Letters of Administration is issued, the executor or administrator can fully manage and distribute the estate as outlined in the will or by law.

The probate house sale process

If you’ve never encountered probate before, it can seem overwhelming. But don’t worry – we’ll guide you through each step of the process, explaining what happens and why, so you can get a clearer understanding of the probate process.

Step 1: Identifying assets and liabilities

The first step in the probate process is to identify all of the deceased’s assets and liabilities. Assets include everything the deceased owned, such as property, bank accounts, investments, personal possessions and shares. Liabilities refer to any outstanding debts or obligations, such as mortgages, loans and unpaid utility bills.

This initial stage is vital, as it allows for a full understanding of the estate’s value. Specialist wills and probate solicitors will usually assist with this, ensuring all financial aspects are accounted for.

Once the total value of the estate is determined, you can assess whether it exceeds the threshold for Inheritance Tax, which we’ll discuss in Step 2.

In addition to identifying the estate’s value, the solicitor will also determine who is entitled to the deceased’s assets. This is done by reviewing the will (if there is one), or in the absence of a will, following Intestacy Laws to identify the beneficiaries.

Step 2: Managing Inheritance Tax and applying for probate

If the estate’s value exceeds the Inheritance Tax threshold of £325,000, it’s time to arrange for payment of any applicable taxes. Even if the estate is below the threshold and no tax is due, an Inheritance Tax return must still be filed to avoid any penalties.

At this stage, your solicitor will also apply to the Probate Registry for a Grant of Representation. This document is important as it proves that the person applying has the legal right to administer the estate. If there is a will, this document is called the Grant of Probate; if there’s no will, it’s called the Grant of Letters of Administration.

Step 3: Waiting for the Grant of Probate

Once you’ve applied for the Grant of Probate (or Representation), the next step is to wait. The probate registry will review the application and, provided everything is in order, issue the grant. This part of the process can take several weeks or even months, depending on the complexity of the estate and the workload of the probate office.

Once the grant is received, the executor or administrator can take full control of the estate. This allows them to sell assets, such as property, and settle any outstanding liabilities like debts and bills, provided there are sufficient funds. The probate property can be marketed and sold, and the proceeds from the sale are then included in the estate.

Step 4: Preparing estate accounts

With most of the estate now liquidated or transferred, the solicitor will prepare a Statement of Accounts. This document details all the money coming into and going out of the estate, including asset sales, debt repayments, and administrative costs.

This is also the stage where any remaining assets are prepared for distribution to the beneficiaries. The estate accounts will be sent to the executors for final approval, ensuring that everything is accurate and accounted for.

The sale of any properties is often completed during this phase. The funds from the sale are added to the estate’s assets, which will be included in the final Statement of Accounts. This statement will list the property sale as part of the estate’s income, alongside any debts that were settled with the proceeds.

Step 5: Distributing the assets

Finally, before the assets can be distributed, a final check will be done to ensure no challenges or disputes have been raised against the estate. If no disputes exist, the remaining assets can be distributed to the terms of the will or, if no will exists, following the Rules of Intestacy.

The property sale should ideally be finalised before Step 5, when the remaining estate assets are distributed to the beneficiaries. This ensures that the proceeds from the property sale are divided appropriately according to the will or intestacy laws.

Once all the beneficiaries have received their share of the estate, the probate process is complete!

Is probate needed if there is a will?

If the person who passed away left a valid will in their name, this will elect one or more executors who will be left with the responsibility of applying for probate. If a will hasn’t been made, ‘the rules of intestacy’ will decide whose responsibility it is to get probate.

The existence of a will significantly impacts the probate process but doesn’t necessarily eliminate it entirely. Having a will generally streamlines the process by appointing executors and outlining asset distribution wishes.

However, probate may still be required even with a will, especially for estates exceeding the Inheritance Tax threshold or involving complicated situations. In the absence of a will, probate becomes almost inevitable due to the need to determine beneficiaries and manage the estate according to intestacy rules.

Is probate a short or quick process?

The probate process usually takes between 6 and 12 months, though the exact timeframe can vary depending on the size and complexity of the estate. Every case is unique, so factors such as the presence of a will, the intricacy of the estate, and how efficiently the executor can manage their responsibilities will affect the timeline.

Applying for a Grant of Probate: 4-12 weeks

The process of applying for a Grant of Probate usually takes 4 to 12 weeks. Several factors influence this, including:

• Whether the will includes a detailed inventory of the deceased’s assets.

• The size and complexity of the estate.

• How well the executor understands the estate and gathers the necessary documents.

The first step involves obtaining date of death valuations for all assets, which can take time. Executors also need to balance the demands of the process with their personal circumstances, such as dealing with grief, which can be slow progress.

While there are no strict timelines for applying for probate, executors must act in the best interests of the beneficiaries. Unnecessary delays could lead to concerns from beneficiaries.

Inheritance Tax deadline: 6 months

Although probate has no set deadline, there is a time limit for paying Inheritance Tax, which must be paid within six months of the person’s death, or interest will begin accruing. Importantly, the probate registry will not issue the Grant of Probate until any owed Inheritance Tax is paid in full. 

Receiving the Grant of Probate: 8-16 weeks

According to current government guidance, you should receive the Grant of Probate within 16 weeks of submitting the application, though it can take longer if additional information is required.

Delays have been common in recent years due to backlogs, particularly during the pandemic, with some cases taking longer than 21 weeks. However, improvements are being rolled out to reduce these delays.

Completing the probate process

Once probate is granted, the executor has the remaining time (within the 6 to 12 month window) to realise (sell or transfer) the assets, prepare and finalise the estate accounts, and distribute the estate to the beneficiaries.

Keep in mind that claims against the estate can still be made within six months of the Grant of Probate being issued, potentially extending the timeline further if any disputes arise.

Can you sell a house without probate?

In most cases, you cannot sell an inherited property without obtaining probate. While the property can be listed for sale and offers can be made, the formal exchange of contracts cannot occur until the Grant of Probate (or Grant of Letters of Administration) has been issued.

This legal document gives the executor or administrator the authority to transfer ownership of the property. However, there are certain exceptions where probate may not be required to sell a house, which include:

While most inherited properties require probate before they can be sold, exceptions exist, particularly when the property is jointly owned or held in a trust. In those cases, the surviving co-owner or trustee already has the legal authority to manage the property, making probate unnecessary.

Can you sell a probate property quickly?

Once probate is granted, many beneficiaries or executors aim to sell the probate property quickly, often to cover debts, distribute funds among beneficiaries, or simply to speed the process and reduce ongoing costs, such as maintenance, utilities and insurance. When looking to sell quickly, there are two main avenues to consider: property auctions and cash house buyers.

While property auctions can be a good option, especially for those looking to achieve market value in a relatively short time (28 to 56 days), they come with risks. The auction process can be unpredictable, and there is no guarantee the property will sell at a desirable price. Additionally, auction fees and the timeline between the auction and completion can extend the process beyond what’s ideal for someone in need of a fast sale.

In contrast, selling to a cash house buyer is a far better option for those looking for speed and certainty. Cash buyers are usually property investment companies who can make an immediate offer without the need for applying for a mortgage. The key advantage here is speed – sales can often be completed in as little as 7 days. This eliminates the uncertainty of property chains and the risks of deals falling through, which is a common issue in auctions and traditional sales.

Moreover, cash buyers often take properties in their current condition, meaning there is no need to spend time or money on repairs or renovations. There are no estate agent fees, and many cash buying companies cover all legal costs, making it a hassle-free solution. 

And, speaking about cash house buyers, selling to The Property Buying Company is the best option for those looking to offload probate property quickly and hassle-free. We specialise in fast property sales, able to complete in as little as 7 days, which is ideal for executors or beneficiaries who need to settle the estate without the stress of long, drawn out open market house sales.

Unlike property auctions, where there’s no guarantee of hitting the desired house price, or even selling in auction, The Property Buying Company offers a guaranteed sale with no hidden fees or complications.

We also commit to making the process as smooth as possible for you. We can do this by handling all the legwork, talking with solicitors, covering the costs, buying properties in any condition, meaning there’s no need for repairs or upgrades before the sale.

By choosing us, you can avoid the financial and emotional burden of preparing a property for sale, all while securing a fair, fast cash offer (for free).