Tales from the Probate Box: How do I deal with a property when someone dies, and can I sell it before probate is granted? 

One of the questions we get asked the most often is ‘When can you sell a house when somebody dies?’. 

As you should be aware from previous articles, before an Executor can act they need to obtain a Grant of Probate. This is a legal document used by the Court, which authorises an Executor to carry out their responsibilities in respect of the deceased’s estate. 

However, an Executor does have a fiduciary duty to act in the best interest of the Estate even before probate is granted. 

So, what happens when somebody dies, leaving behind a property? 

The first action that the Executor should take is to ensure that the property is secure. They should then look through the deceased’s papers to see if they can find details of any building insurance policy. If found the insurer should be notified of the death.  

In practice the cover should continue, but the insurance company will want to know how often the empty property is being visited. Cover, such as for leaks from water for example, may be affected. 

The Executor should then contact the beneficiaries of the Will to ask what they want to happen to the property. Do they want it sold, will they keep it to rent it out, or will one inherit the property but take less in the way of cash?  

Sometimes there is no choice. Inheritance Tax (IHT) might need to be paid, or there may be too many beneficiaries. 

If the property is to be sold, an Estate Agent can be instructed before probate is granted. They will need to be told that it is subject to probate, and the agents would usually want to see the Will to confirm appointment. 

You need to be aware that, until probate has been granted, you will not be able to exchange contracts. This is because without probate you cannot give a valid receipt for the sale. 

Therefore, the timing in respect of putting any property on the market is important. The good news is that we are seeing probate grants being issued within four weeks of submission. This compares favourably to the wait times of circa eight months that we saw a few years back. 

If an IHT form is needed then, as we have previously written about, this will need to be submitted to HMRC four weeks before any probate submission is made. 

We usually suggest the property is marketed at the same time as the IHT form is submitted. Obviously, should the Probate Office ask questions, the time period can lengthen considerably. 

If there is no Will and a beneficiary is applying for a letter of administration, the same process can apply, however it can be a lot more difficult to persuade an Estate Agent to accept instructions. This is why it is essential to have that all important Will in place.  

As part of our private client package of support, we provide bespoke Will-writing services alongside probate and estate administration services, to ensure that your wishes are documented, legacy protected and estate handled efficiently, when the time comes.  

To find out more about how we can support you, and your family, with writing a Will, navigating the probate process, or Inheritance Tax planning, contact us today.