Lootman wrote:I am a big believer in avoiding probate if at all possible. It saves money, time, effort, frustration and risk.
If as an executor and/or beneficiary, I can get the assets in my hands without probate then I always will. The rest can be sorted out later - possession is nine points of the law, as someone apparently once said.
In a case involving a house it can't be avoided, as you won't be able to sell the house without a grant of probate.
Likewise, if there are any significant investments, such as shares, bonds etc, a grant will be required to transfer / sell them.
One useful tip, if there's time, is to check if your mother has any shares or other investments that are registered in foreign countries. These can be a real pain to deal with, and it may involve hiring local lawyers and paying often substantial legal fees in relation to the value of the holding. For example, shares registered in Jersey will often need a local grant of probate to be obtained, and Jersey lawyers are as expensive as you'd expect.
Although it's essential to consider the tax position (any CGT liability disappears on death) it may be sensible to sell these before death, if practicable.
You may think it's unlikely that she would hold any such shares, but they're surprisingly common. I'm dealing with several estates where, in particular, shares in Kraft and Mondelez were held, as a result of these companies having taken over UK ones, and issued shares instead of cash. Both companies are registered in the USA, and it's an expensive nightmare trying to get them sold / transferred, involving long telephone calls to Louisville, Kentucky, and conversations with people who appear to be astonished that anyone actually lives outside the USA.
The same applies to property owned overseas, as this can also be a lot more difficult and expensive to sell after death than during the owner's lifetime. Obviously, however, this would again only be practicable where someone has sufficient prior warning that they are dying.
It's often the case that funeral firms offer hefty discounts for quick payment, but the family may not be able to raise the several thousand pounds involved, and have to wait for probate, by which time the discount's gone. However, what few people know is that banks and building societies will allow funds in the deceased's account to be withdrawn for funeral bills before probate's been granted.
This also applies to the payment of inheritance tax, which needs to be paid before probate can be granted.
As there's a house you need to consider how to value it. If inheritance tax is payable then value it as low as possible, as every extra pound on the valuation incurs 40p tax. OK, you may have to pay capital gains tax when it's sold, but that will be at a much lower rate.
If there's no IHT payable then value it as high as possible, as it's the death value that's the staring point for any future CGT calculation. And to minimise CGT you can transfer it into the joint names of you and your sister before you sell it, so you can each benefit from your annual £12,300 exemption (though this may not apply if you live overseas).
Find out if the solicitor is an executor, and, if so, you might consider asking them for a fee quote to deal with the estate. Most firms, especially small ones, will probably be fairly reasonable, but there are still some who insist on taking a percentage of the estate as well as hourly charges, and this is not on. If there is a solicitor appointed, and you and your mother aren't happy about it, your mother can easily make a codicil removing them, and the solicitor doesn't need to be involved.
It's a miserable situation to be in, and it may seem a bit callous to be considering such practicalities, but having probate hassles while you're still trying to come to terms with the death is the last thing you need, so anything you can do, within reason, to mitigate these will definitely be worthwhile.