If you are a beneficiary of someone's estate, there can be a lot of uncertainty during the probate process, especially if the executor of the estate does not communicate as effectively as they should. For some, receiving an inheritance brings closure and helps them to overcome their grief while, for others, an inheritance may offer vital income support, especially if they were dependent on the person who died.

When your inheritance is ready, it can usually be paid to you via a transfer to your bank account or by cheque, and you should be invited to collect any physical gifts or other assets, or have them delivered to your home. However, there are several important steps that must be taken between when a person dies and when their estate is ready for distribution, so the timeline and process for receiving an inheritance is different in every case. This includes several legal requirements for determining how the deceased's estate is managed that cannot be avoided.

Here, the wills and probate experts at JMW explain how an estate is handled after a person dies, the process by which the estate's value is calculated (which often affects how much you inherit), and how those who have been left money or other assets should expect to receive them.

What Happens Before You Find Out Your Inheritance?

There are several vital legal steps that must be completed before gifts can be valued and distributed, the first of which is for the relevant executor to seek the legal authority to deal with the deceased person’s estate. The executor must be named in the person's will and may need to apply for a grant of probate. Applying for probate is required for all estates before they can be distributed to beneficiaries, unless the estate is very small or all the assets were jointly owned. If there is no valid will, the process is different, and you may find that you do not stand to inherit at all. In such cases, the law determines who will inherit, no matter the deceased's stated intentions before they died: this law is known as the rules of intestacy. Without a valid will, an administrator must be appointed to apply for a grant of letters of administration. 

The executor will gather all the deceased’s assets (bank accounts, property, investments, personal possessions) and calculate their value. This can be done before probate is granted, provided the executor has a copy of the person's death certificate. By identifying and valuing any outstanding debts, and removing this from the value of the assets, they will be able to determine the overall value of the estate. This can have significant tax implications, as it determines whether or not the executor needs to pay Inheritance Tax to HM Revenue and Customs. The current rate of Inheritance Tax is 40% of the value of an estate that exceeds the tax-free threshold of £325,000 and, while other exceptions and allowances apply, this can still represent a significant portion of an estate's funds.

While you might have some sense of how much a person's estate is worth, the need to pay Inheritance Tax can affect how much you will receive from the estate overall, especially if you are a residuary beneficiary (someone who is given a percentage of the remainder of the estate once any specific gifts have been distributed).

The executor must calculate and pay tax before they can continue with the probate process, but Inheritance Tax is not the only potential liability. Debts and other administrative expenses must also be paid before anything can be distributed, and executors sometimes wait for a set period after the person dies for any unidentified creditors to come forward with their claims on the estate. Liabilities that must be paid include:

• Outstanding loans or credit cards
• Any utility bills and taxes owed
• Funeral expenses
• The executor’s legal or professional fees

Once these have been settled, the net value of the estate that remains is that which will be inherited by the person's beneficiaries, although there may be further steps for the executor to take before the inheritance is ready to be distributed. Depending on the nature of the estate, you may receive a portion of the deceased's estate at this stage, followed by a larger sum later that represents the rest of what you are owed.

When Do You Receive an Inheritance?

There are a few tasks that an executor may still need to fulfil before they can distribute the estate, although they should now have communicated the value of any funds or assets you are to receive. This will depend on the nature of the estate and the assets within it - for example, if the estate includes property and this is not earmarked for a specific beneficiary, it will need to be sold before the proceeds can be shared. Other assets of high value may also need to be sold in a similar way before the full inheritance can be paid. However, if this is likely to take longer than six months, executors may provide a portion of the inheritance early, before delivering the remainder when all high-value assets have been disposed of. If the person had a life insurance policy, the executor may also wait until they have received any relevant payments.

Inheritance can take several forms:

• Cash lump sums transferred into your bank account;
• Property or land transferred into your name or sold with proceeds shared; or
• Personal possessions like jewellery, cars or artwork

All assets must be distributed according to the terms of the will, and possessions will be sold if they are not easily divisible or assigned to be given to specific beneficiaries in the document.

As all of these stages must be completed and executors should be confident they have met all of their legal obligations, receiving an inheritance will not happen immediately after a person dies. It will often take six to 12 months for beneficiaries to receive their inheritance, but this can be longer for large or contested estates. Executors should maintain communications with beneficiaries to keep them informed and aware of what to expect at all stages, to help them to manage their expectations accordingly.

Several aspects of the process can introduce delays, including everything from waiting for the grant of probate to be issued, to selling property or dealing with complex assets, to any difficulties in locating hard-to-find beneficiaries. As has been mentioned, if there is no will, the estate is divided according to the rules of intestacy, which prioritise spouses, civil partners, children, and other close relatives - but the administration of an estate can still be subject to the delays listed above.

What Should You Do About Delays in Receiving an Inheritance?

Beneficiaries have the right to be kept informed of the probate process and can request an estate account from the executor showing how assets were managed and distributed. If there are disputes or concerns about delays, the first step is to speak to the executor about your concerns. In many cases, this is enough to receive an update that should explain any delays.

If an executor is taking too long to fulfil their responsibilities or you believe they are not carrying out their duties properly, you may also consider legal options. It is possible under certain circumstances to have an executor removed from the process, but this is not always advisable. Unless you are confident that the executor will not meet their legal obligations to the estate, it can take longer to have someone else apply for probate and take over the role than to wait.

Even for an experienced or competent executor, the process can take many months. As such, it is best to speak to an experienced wills and probate solicitor about your concerns to find out whether or not you are in a position to take legal action, or for more insights into the probate process. Call JMW today on 0345 872 6666 or use our online enquiry form to request a call back at your convenience.