25th September 2017

Prudential: Where there’s a will there’s a way

In this article Graeme Robb, Senior Technical Manager at Prudential explores the limited circumstances under which Probate Service will now accept online applications from personal applications.

Key points

• Certain criteria must apply
• England & Wales only
• Online functionality will be expanded in the future
• Probate trusts can avoid the need for probate in respect of the trustee owned policy

The criteria

The Probate Service will now accept online applications from personal applicants based on the criteria below

• Only one executor is applying
• There is an original will available and the person who died did not leave an update to the will (codicil)
• The person who has died classed England and Wales as their permanent home or intended to return to England and Wales to live permanently.

What the new online application provides

The new online application form includes:

• A new 'statement of truth' for the applicant to declare that the information provided is correct. This removes the need for an oath to be sworn in person
• The function to pay the fee online.

Supporting documentation required

The same supporting documents that are required under the current paper process will be necessary:

• The original will and two photocopies
• The death certificate
• The associated inheritance tax forms and figures
• Any other supporting documents relevant to the case (e.g. a renunciation form).

The online application form will continue to be developed to cover a broader range of probate applications in the future. The Probate Service is looking to enhance this facility in the future, potentially through links with other departments to gather information automatically as part of the process.

Online applications will be extended for solicitors and other professionals to apply later in 2017.

Though nominally open to the public, there is not yet any direct gateway to the online probate form. Potential users must instead contact the HMRC helpline for the details. Note that insurance companies might provide probate trusts. These trusts are designed to speed up the payment of policy proceeds on death by avoiding the need for probate in respect of the trustee owned policy (e.g. a bond).

• The bond is transferred to trustees during the client's lifetime
• Payments can be made to the beneficiaries (including the settlor) at any time
• The trust will continue to the end of the trust period or until all the assets have been distributed
• After the client's death, the trust can continue or be wound up with the proceeds paid out In last month's edition of Oracle technical, Helen O'Hagan explored the subject of Probate Trusts.

Other articles in this edition:

• Language of Inheritance tax
• A trio of tax
• Mandating income on an interest in possession trusts
• Pensions Commencement Lump Sum Recycling

Read the full edition here.

Investments, Technical