How Much Does An Estate Have To Be Worth To Go To Probate (Or Letters Of Administration) In The UK?
In the UK, probate is required when an estate is worth more than £5,000, but the rules aren’t always set in stone. It depends on whether assets were held jointly or individually and the policies of the financial institutions involved.
(Probate is the process followed when a will had been made and letters of administration is the process where no will had been made. There are legal differences, but for the purposes of this article, the information is largely the same, and the text will simply refer to Probate.)
Let's take a look at how this works.
Who Decides If Probate Is Necessary?
In most cases, financial institutions, such as banks and building societies, have the final say on whether probate is required based on the value of the deceased’s assets held with them. Each institution sets its own threshold, which we usually find to be between £5,000 to £50,000.
However, it’s not just the institutions that make the call; if the estate includes property, whether owned solely or jointly, probate will be required to effect the legal transfer.
So, It’s always a good idea to consult with a solicitor to confirm whether probate is necessary, especially if the estate falls into any grey areas.
Probate Thresholds For UK Financial Institutions
These are probate thresholds for some common financial institutions in the UK. They can vary, so if you don’t have a solicitor handling your probate and administration, always confirm with each institution when dealing with an estate.
| Financial Institution | Probate Threshold |
|---|---|
| Barclays | £50,000 |
| NatWest | £50,000 |
| HSBC | £10,000 |
| Co-op Bank | £50,000 |
| Halifax | £50,000 |
| Lloyds Bank | £50,000 |
| Bank of Ireland | £50,000 |
| Post Office | £30,000 |
| Tesco Bank | £50,000 |
| AXA | £10,000 |
| Santander | £50,000 |
What Happens If The Estate Is Below The Probate Threshold?
If the estate is below the probate threshold set by financial institutions, they will usually release funds without the need for probate as long as the estate value is under their set limit.
Usually, presenting a death certificate, and in some cases, a copy of the will, will be sufficient. Similarly, jointly held assets, such as joint bank accounts or jointly owned property, will pass directly to the surviving co-owner without the need for probate.
When Is Probate Required In The UK?
Here are two things that determine when probate is required in the UK:
1. Value Of The Estate:
If the total value of the estate exceeds the financial institution's probate threshold, typically ranging from £5,000 to £50,000, a grant of probate is often required. These assets could include bank accounts, shares, pensions and life insurance policies.
As mentioned earlier, smaller funds might be released without probate, but this varies by institution. It’s recommended to check with each company or consult a solicitor to confirm their specific threshold.
2. Ownership Of Assets:
Jointly owned assets, such as joint bank accounts or property, usually pass directly to the surviving owner without the need for probate. A death certificate is typically sufficient.
However, if assets were owned solely or as tenants in common (like some property arrangements), probate may be necessary to manage or distribute them.
To determine how a property was owned, you can check the property's title deeds, consult with a solicitor or conveyancer, or reach out to the Land Registry for official records.
In cases of uncertainty, a probate solicitor can offer valuable guidance, ensuring that probate is handled properly based on the specific assets and their ownership.
Who Applies For Probate?
The responsibility of applying for probate falls on the executor named in the will. If there is no will, then an administrator is appointed.
Executors (probate process) and Administrators (letters of administration process) are responsible for managing the estate, paying off debts, and distributing assets to beneficiaries. Their role can involve gathering financial information, settling taxes and handling legal documents. We recommend seeking legal assistance from our solicitors to help avoid errors and ensure the probate process runs smoothly.
FAQs On When Probate Is Required
Is Probate Required If There Is A Will?
Yes, probate is often required, even if there is a will. It allows the executor(s) to manage and distribute the deceased's assets. However, probate may not be needed for small estates or jointly held assets that automatically transfer to a surviving co-owner.
How Long Does It Take To Get A Grant Of Probate?
Obtaining a grant of probate typically takes around 16 weeks after submitting the application. However, complex estates or issues such as probate backlogs can cause delays, potentially extending the process to several months.
Does Every Death Have To Go Through Probate In The UK?
No, not every death requires probate. Probate is usually only necessary for larger estates or when assets are held solely in the deceased’s name. Small estates or jointly owned assets may bypass probate, passing directly to beneficiaries.