How long after probate is granted does it take to receive inheritance?

How long after probate is granted does it take to receive inheritance?

This is a difficult question to answer because every estate is different. However, for a very straightforward estate, perhaps with just a single bank account and no property involved, it might take as little as six months for the beneficiaries to receive their inheritance. However, many estates are more complex and can take around six to twelve months to finalise, sometimes longer.

Why can it take so long? What’s involved?

The person or people responsible for administering the estate are:

• executors (if there’s a Will); or
• administrators (if there’s no Will).

Collectively, these personal representatives (PRs) must deal with all the deceased’s assets. This might include:

• closing bank and building society accounts.
• selling shares and other investments.
• transferring or selling a home and/or other property.

Depending on the value of the estate, the PRs may need to obtain a Grant of Representation to deal with the deceased’s assets. The type of Grant needed will vary depending on the circumstances and whether the deceased left a Will.

Applying for a Grant is often time-consuming, requiring considerable information about the estate. If applicable, the PRs must pay any Inheritance Tax (IHT) due before a Grant is issued.

Once applied for, it usually takes several weeks for the Probate Registry to issue the Grant of Representation. However, the Probate Registry sometimes suffers substantial backlogs of work and obtaining the Grant can then take much longer.

See also: What does an executor of a Will do?

Examples of reasons why it can take longer to receive an inheritance

Other than Probate Registry delays, the distribution of the estate to beneficiaries may be delayed for the following reasons:

• Selling property: Waiting for the sale of the deceased’s property.
• Selling shares: Shares are often sold through a stockbroker or share registrar, involving a lot of paperwork.
• Overseas assets: Foreign assets add time to the process. Overseas property may need to be sold, involving foreign estate agents and lawyers. Remember that local law applies to overseas assets, and the deceased may have a Will in the relevant country dealing specifically with those assets.
• Missing beneficiaries: Occasionally, delay may be caused by missing beneficiaries. The PRs must take reasonable steps to find a missing beneficiary. This might involve instructing a tracing agent or placing newspaper or other advertisements.
• Placing statutory advertisements: The deceased’s creditors can claim repayment from the estate. The PRs can notify potential creditors of the death by placing a statutory advertisement in the Gazette and the local newspaper in the area where the deceased lived. The minimum time given for creditors to come forward is two months.
• Investigation by the DWP: The DWP might investigate whether they overpaid benefits to the deceased. Such investigations can add six to nine months to the process.
• Claiming on a life insurance policy: If a life insurance policy forms part of the estate, the trustees of the policy may have discretion over who to pay. This often involves many questions for the potential beneficiaries and the circumstances surrounding the death.

Claim against an estate

Under the Inheritance Act (Provision for Family and Dependants) Act 1975, certain categories of people can:

• challenge the terms of a Will; or
• the distribution of the estate under the intestacy rules.

A claim can be issued any time within six months from the date of the Grant of Representation. If there is a risk of a potential claim, PRs will wait for the six-month period to expire before making any payments to the residuary beneficiaries.

Distributing the estate

The beneficiaries can receive their inheritance in full once the estate administration is finalised; when all funds are received, and all outstanding expenses and debts are satisfied. However, the PRs may arrange an interim distribution to the beneficiaries pending the completion of the administration process.