What Happens to a Property After Someone Dies?

Losing a loved one is difficult enough without having to navigate unfamiliar legal and administrative processes. One of the most common questions families ask is what happens to a property after someone dies and whether it can be sold or transferred immediately.

The answer depends on a number of factors, including how the property was owned, whether there is a valid Will and whether probate is required. Our private client and lifetime planning team advises families across each of these stages, from applying for probate through to the sale or transfer of the property itself.

Before a property can be sold or transferred, someone will be required to act on behalf of the deceased’s estate. This is dealt with by whoever the deceased appoints as their Executors under the Will. They will need to get what is called a Grant of Probate. However, if there is no Will in place, then they would have died intestate and subject to the Intestacy Rules as to who can apply for Letters of Administration.

Both documents will give the right to deal with the property and estate of the deceased. Our article on what happens if there’s no Will explains how an estate is dealt with in those circumstances.

Selling or Transferring a Property After Probate Is Granted

Once you have the Grant of Probate or the Letters of Administration, which is often dealt with by your solicitors, arrangement for the property to be sold or transferred can begin. For a closer look at why that support matters, see our article on the hidden risks of DIY probate.

The sale proceeds will normally form part of the estate and will ultimately be distributed in accordance with the Will or, where there is no Will, the intestacy rules, again we can guide you on this.

A valuation of the property should be carried out to assess the value correctly at the date of death. This valuation forms an important part of the estate administration process and may be required for Inheritance Tax purposes.

Depending on the circumstances, the valuation may be provided by a local estate agent or, in higher-value or more complex cases, by a qualified surveyor.

How the Property Was Owned: Joint Tenants and Tenants in Common

How the property was owned before death can significantly affect what happens next.

Usually there are two ways in which to hold a property. Firstly, the property is owned as Joint Tenants, here the deceased’s part of the ownership will usually pass automatically to the surviving owner.

Secondly, where the property is owned as Tenants in Common, the deceased’s share (and this can be any percentage but often 50%) will normally go in accordance with the Will or intestacy rules.

Understanding the distinction is often crucial when advising families about their options and we are happy to explain this further.

Inheritance Tax on a Property Within the Estate

Property often represents one of the most valuable assets within an estate and may therefore have significant tax implications.

Whether Inheritance Tax is payable will depend on the value of the estate as a whole and the reliefs and allowances available. Early advice can often help families understand their potential tax exposure and available options. Probate delays and the interest that can build up on an unpaid Inheritance Tax bill are covered in more detail in our article on the double risk for families dealing with estates.

Transferring a Property to Beneficiaries: What Is an Assent?

In some cases, rather than selling the property, the beneficiaries may wish to retain it.

Ownership can usually be transferred from the estate to the beneficiary through a legal process known as an “assent”. Where there are multiple beneficiaries, careful planning may help achieve the most tax-efficient outcome.

Speak to Our Probate and Estate Administration Solicitors

Administering an estate often involves a combination of legal, practical and tax considerations. Seeking professional advice at an early stage can help avoid unnecessary delays, ensure compliance with legal requirements and provide clarity during what can be a difficult time.

If you have questions about probate, transferring property following a death, or selling property as part of an estate administration, our Private Client team would be pleased to assist.

Call 020 8221 8000, email info@bowlinglaw.co.uk or find out more about our private client and lifetime planning services. We will talk you through your options and take the pressure off at a difficult time.