The Dangers of DIY Probate

Handling a loved one’s estate can be emotional and daunting. For many, the appeal of tackling probate independently, often referred to as “DIY probate,” stems from the misconception that it’s as simple as filling in a few forms. But the truth is far more complex.

The risks associated with DIY probate can lead to financial loss for executors, beneficiaries or the estate, unexpected tax bills and, increasingly, family disputes.

This blog will explore the dangers of DIY probate while highlighting why seeking professional advice from the outset could save you time, stress, and significant costs.

What is Probate?

Probate can be a broad term describing the legal process of administering someone’s estate after they have passed away.

It involves obtaining the legal authority to deal with the deceased’s assets, settling any debts and taxes, and distributing the remainder in accordance with their Will (or the rules of intestacy if there’s no Will).

While this sounds straightforward, the process can vary significantly depending on each estate. And this is where it gets tricky.

Why Executors Turn to DIY Probate

The perceived simplicity of probate often leads executors to take on the task themselves. Common reasons include:

• They’ve ‘done it’ before or believe previous experience equips them for such tasks.
• Overconfidence, caused by incorrect ‘advice’ from third parties, such as banks or friends unaware of the estate’s specifics, can lead executors to underestimate the process.
• Cost-saving mindset, where executors want to avoid professional fees, assuming DIY is the cheaper option.

While these reasons might seem valid, the dangers far outweigh the benefits.

The Dangers of DIY Probate

Taking on probate without professional assistance carries risks that can often become apparent too late, sometimes months or years later. Here are some of the most significant dangers of DIY probate:

1. Financial Penalties & Delays

A common misconception is that probate only involves a few forms. However, understanding which forms are required and ensuring they’re completed correctly is critical. Mistakes can lead to financial penalties or delays in settling the estate.

For example, an unintentional error in valuing an estate could result in underpaying inheritance tax. If HMRC later discovers the error, they may impose fines or penalties directly on the executor. Similarly, overlooking creditors or assets can lead to costly complications down the line.

2. Risk of Unexpected Tax Bills

Probate requires a detailed understanding of the ever-changing tax rules, including inheritance tax, income tax, and capital gains tax. Navigating these complexities without professional guidance opens the door to errors.

The UK tax code is 10 million words and 21,000 pages. To put that number in perspective, the Complete Works of Shakespeare is about 880,000 words.

3. Family Disputes

Estate administration is often already emotional and challenging, particularly where multiple beneficiaries or co-executors are involved. Without impartial advice, managing probate alone can exacerbate tensions and lead to disputes, even in the closest families.

At April King, we’ve handled numerous cases in which poorly communicated DIY efforts have irreparably damaged family relationships. This can be particularly problematic if one executor perceives another as favouring other beneficiaries or suspects them of mishandling financial decisions.

We’ve observed a 20% rise in disputes between executors from DIY probate. These cases highlight how starting with professional help could save time, money, and stress.

4. Personal Liability & Claims Against Executors

Executors are legally and personally responsible for the proper administration of the estate. Any errors, intentional or otherwise, could put their own assets at risk. For example:

• Failing to identify all estate debts could leave the executor personally liable for covering them.
• Executors who are also beneficiaries may be tempted to pay themselves too early or in excess of their entitlement, leaving the door open for potential claims from other beneficiaries or the estate.

5. Increased Costs When Professionals Are Required Later

When executors encounter difficulties partway through the process, they may need to seek professional assistance to rectify the situation. However, hiring a professional at this stage often results in higher costs.

Rectifying errors requires reviewing every step undertaken and correcting mistakes where possible. This increases fees and significantly delays the process, impacting both the estate and beneficiaries.

How April King Can Help

Our team of probate experts specialises in reducing the burden on executors and ensuring the process is handled efficiently and accurately. With years of experience, we provide:

• Comprehensive estate administration services tailored to your unique situation.
• Transparent pricing so you know exactly what to expect.
• Empathetic support during a difficult time, offering peace of mind for you and your family.
• We can assist with as much or as little of the process as you need, whether that is simply obtaining the Grant of Probate or handling the full estate administration.
• Services are carried out by insured, regulated specialists, giving you confidence that everything is managed with care and professionalism.

If you’re dealing with an estate or are unsure of the correct steps, please contact us below. 

Take the First Step Today

Probate can be far more complex than you think, with high stakes. With professional assistance, you can safeguard yourself, your family, and the estate while ensuring a seamless process.

If you’re ready to protect yourself from the dangers of DIY probate, contact April King Legal today for an initial consultation. Don’t leave your loved one’s legacy to chance.

Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, financial, or professional advice. No responsibility is accepted for any action taken or not taken based on the content of this article. Readers should seek appropriate professional advice tailored to their circumstances before making decisions. April King Legal will not be held liable for any loss or damage arising from reliance on this information.