Probate in ireland

Probate is a legal document issued by the High Court that gives the executors of a will permission to deal with the assets of a deceased person’s estate.

Probate is only required if there is a will, and not always necessary. Probate is necessary if the deceased person held real property, such as land or buildings, or if the estate is over a certain value. If the estate is under the value of €25,000 and there is no real property held by the person, a grant of probate will not be required.

A grant of administration is a legal document that grants permission from the high court to administrators to handle the assets of a deceased person. This document is essentially the same as a grant of probate, but there is one significant difference. A grant of probate is issued to executors, who are the individuals appointed under a will to manage the assets of the deceased person. On the other hand, a grant of administration is issued to administrators who are individuals appointed by law to manage the assets of a person who died without a will. The laws of intestacy determine who is entitled to extract the grant of administration. Essentially, the grant of administration provides legal permission for administrators to deal with the deceased person’s assets.

The probate process involves gathering information about the deceased person’s assets and liabilities, identifying beneficiaries, and submitting a probate application to the high court or the district probate registry. Once the grant of probate or grant of administration is issued, the assets are gathered and cleared by state bodies before being distributed to beneficiaries.

Step-by-Step Process:

• Notification: When someone passes away, notify a solicitor, who will arrange an appointment with the executors or administrator.
• Information Gathering: Detailed instructions about the deceased person’s assets and liabilities are taken, and values and assets are established. Liabilities such as funeral expenses, loans, credit cards, and charges are listed.
• Beneficiary Identification: Beneficiaries are identified, and their contact information is obtained.
• Probate Application: A probate application is prepared, drafted, approved, and signed by the executors or administrators, depending on whether there is a will or not. The application is submitted to probate.
• Grant of Probate or Grant of Administration: The process can take between 12 to 16 weeks for the grant of probate or grant of administration to be issued by the high court or the district probate registry.
• Asset Gathering and Clearance: Once the grant is issued, it is submitted to banks or other institutions where assets are held, and the assets are gathered by the solicitor for distribution. Clearances are obtained from state bodies, such as the Department of Social Protection, the Revenue Commissioners, and the nursing home support scheme if applicable.
• Asset Distribution: Once all of this information is dealt with, the final stages of the estate can be processed, and the assets can be moved to the beneficiaries in accordance with the will or the laws of intestacy.

The probate process in Ireland typically takes a minimum of one year to 18 months from the date of the deceased person’s passing. Delays can occur due to various factors, such as family not being ready to deal with the process, waiting times in the probate office, complex issues in the estate, missing information or assets, and claims against the estate. These complications can further hinder the process and delay it even further.

The cost of probate is typically charged as a percentage of the gross assets of the estate, according to law society guidance and practice recommendation, with the current fee being 2.5% (as of 2023). However, if there are complications in the estate, the fee could be higher. In cases where the gross assets are high but the work involved is lower than expected, a reduction in fees may be possible.

The executors or administrators of the estate are the individuals who apply for probate, either with or without the help of a solicitor. The executor or administrator is the one who actually applies for the grant of probate.

The tax implications with probate depend on the relationship you had with the deceased. There are three categories of tax in Ireland: Category A, which applies to children of the deceased, has a higher threshold than Category B or C. Category B applies to nieces, nephews, siblings of the deceased, and Category C applies to more remote relatives such as cousins or non-relatives like family friends or children-in-law. The current tax rate in Ireland is 33% of anything above the threshold amount. If you have already inherited from a person within the same category as the deceased person, that will have to be taken into account in your threshold and may reduce your amount of threshold available for this particular inheritance.

The executor’s duties are primarily to ensure that the deceased’s assets are dealt with in accordance with their wishes and their will. This involves gathering details of the assets and liabilities, getting valuations of the estate, and instructing a solicitor to draft the paperwork. The executor is also responsible for ensuring that there are no outstanding claims against the estate, paying any loans or mortgages, and covering funeral expenses if there is no life policy. They must also provide details of all beneficiaries so they can be contacted and notified of their benefit.

Once all assets are dealt with, the executor must make a probate application and verify all details to the best of their knowledge. After the grant of probate issues, the executor must gather and distribute the assets in accordance with the will. They must also notify beneficiaries of any potential inheritance tax and ensure that it is accounted for. The executor is also obliged to ensure that beneficiaries of the residual estate are notified of how their calculated benefit was reached. Accounts must be provided so that beneficiaries can see how the amount they receive was determined. The executor must ensure that all assets are distributed efficiently and in a timely manner, with as little delay as possible.