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When is probate needed?

If the deceased person's estate is worth more than £10,000, probate is normally necessary. If the majority of the assets in the estate were jointly owned, however, probate may not be required.

Matthew Ridyard avatar

Matthew Ridyard

07 January 2022

What does probate mean?

Probate is the legal procedure of dealing with someone's estate after they pass away. You'll receive a government-approved document that you can take to banks, the land register, and other organisations after completing this process. You'll be able to collect assets and distribute payments to beneficiaries with this authority.

You'll require a grant of probate or a grant of letters of administration, depending on your case. In some circumstances, probate may not be necessary at all — but we'll get to that later.

What is the maximum amount of money that can be left before probate is required?

In England and Wales, the probate level can range between £5,000 to £50,000. This is due to the fact that each bank and financial institution has its own set of rules about how much money they can release prior to receiving a grant of probate.

Below is a list of probate thresholds from the most well-known banking institutions:

  • £50,000 Aviva

  • AXA Insurance - £10,000

  • £10,000 - Bank of Ireland

  • £50,000 from the Bank of Scotland

  • £50,000 - Barclays

  • £25,000 - Birmingham Midshires

  • £30,000 Britannia

  • £25,000 Cheltenham & Gloucester

  • £30,000 Co-op Bank

  • First Direct - Determined on an individual basis. (£30,000 if the beneficiaries are children.) £50,000 if one of the beneficiaries is a spouse. Others may have a lower price, in which case you could contact First Direct.)

  • £50,000 - Halifax

  • HSBC - Determination is made on a case-by-case basis. (£30,000 if the beneficiaries are children.) £50,000 if one of the beneficiaries is a spouse. Others may have a lower rate, in which case you should contact HSBC.)

  • £50,000 - Lloyds TSB

  • £15,000 M&S Money

  • £50,000 Nationwide

  • £25,000 - Natwest

  • NS&I - £5,000 to £15,000, depending on the number of executors and the will.

  • £10,000 - Post Office

  • £25,000 - Royal Bank of Scotland

  • £20,000 Sainsbury's Bank

  • £50,000 Santander

  • £15,000 Skipton Building Society

  • £25,000 Tesco Bank

  • £25,000 TSB

  • £35,000 Virgin Money

  • £15,000 - Woolwich

  • £30,000 - Yorkshire Building Society

Is it necessary for me to obtain probate?

Probate is necessary in roughly half of all deaths in the United Kingdom, and it can be required whether or not there is a will. There are two things you can undertake to see if you require probate:

1. Determine the estate's worth

You generally won't need to apply for probate if the entire value of the estate is less than £10,000. This is because banks are more prepared to provide lesser sums of money and assets in the absence of a formal government grant.

Banks and other institutions have been known to release up to £50,000 without seeing a grant in some situations. So, if you believe the estate isn't worth much, check with the individual corporations to discover what their probate threshold is.

2. Determine whether the assets are owned jointly

The next step is to determine who owns the assets. If all of the assets in the estate are jointly owned, such as property, bank accounts, and savings, the surviving co-owner will automatically inherit them. This implies you won't need to file for probate to get these assets released; all you'll need is a death certificate.

If the property was owned as tenants in common, or if there are other solely owned assets in the estate, you may still need to petition for probate. This could include bank accounts, stocks, pensions, and life insurance plans, among other things.

Is probate required if there is a will?

Whether or whether there is a will, probate may be required. You'll almost certainly need probate if the estate you're dealing with is worth more than £10,000 and comprises a number of solely held assets.

If the estate is worth less than £10,000 or consists only of shared assets (such as a mortgage or joint bank account), however, probate may not be required.

When is probate not necessary?

If the estate is worth less than £10,000, probate is usually not necessary. Because most banks and building societies will discharge funds under £10,000 without requiring a grant of probate, this is the case.

When the majority of the assets are jointly owned, probate may not be required. This is because assets such as shared mortgages and savings accounts pass to the remaining owner immediately.

How to Obtain Probate

Once you've determined that you require probate and have a thorough understanding of the estate's assets and liabilities, you should file your application as quickly as possible. Because the government can take a long time to process applications, the sooner you submit yours, the better.

Summary

  • If the deceased person's estate is worth more than £10,000, probate is normally necessary. For additional information, see our guide on what is probate.

  • Probate may not be required if the majority of the assets in the estate were jointly owned, such as a combined mortgage or bank account.

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