How much does an estate have to be worth to go to probate in the UK?

The probate process can sometimes be lengthy and complicated. At a time when you and your family are dealing with the emotional and practical upheaval that follows the death of a loved one, it is a process that many could do without. Until the executors obtain a Grant of Probate, however, assets in the deceased’s estate are effectively frozen.

Fortunately, there are some circumstances when an estate might not need to go through probate. This exception comes into effect when the estate’s value does not exceed a certain amount or when all the deceased’s property is jointly held. In this blog, we will look at how you can avoid applying for probate when the value of assets left by the deceased is lower than the stipulated threshold.

What is probate for?

Probate is the legal right of executors to deal with a deceased person’s property or estate when they die. Executors must apply to the court for a Grant of Probate in order to do so. However, if there is no Will and therefor there are no executors appointed, ‘administrators’ wind up the deceased’s estate instead, using a Grant of Letters of Administration.

The Grant of Probate is a document that proves the executors have the right to distribute and sell the deceased’s property. Without it, a buyer of the deceased’s house, for example, would not get the legal title required on purchase. Before you successfully obtain probate, you cannot try to sell any of the deceased’s assets or divide property among beneficiaries.

How much money is needed before probate is required in the UK?

When assessing whether the value of the estate for probate is low enough to avoid applying for a Grant of Probate, executors should contact the financial institution where any money is held. There is no set minimum legal threshold for estates to avoid probate. Each bank or institution sets its own limit. This dictates whether family and loved ones of the deceased will require a Grant of Probate to access the funds held in the particular institution.

These limits vary considerably between institutions and are always subject to change. However as an illustration some recent limits set by various banks and other financial groups are as follows:

• Barclays Bank              £50,000
• Bank of Scotland         £25,000
• Co-op Bank                 £30,000
• Natwest                       £25,000
• NS&I                            £5,000 to £15,000
• Post Office                  £10,000

Generally the institutions will release funds without probate on production of a certified copy of the death certificate and, if there is one, a certified copy of the Will. Where the deceased had multiple accounts at different banks, it is the total held by each bank that counts for valuation. If the amount held at a single institution falls below its threshold, then probate will not usually be required.

All banks and building societies release funds without probate at their discretion. Where there are unusual or complex issues, such as a family dispute, the banks may require production of a Grant of Probate even where the amount of funds held are small.

Do I need probate for a small estate?

Not necessarily. Money held in bank accounts below a certain threshold can be accessed without a Grant of Probate. When assessing estate value for probate however, we must also take into account other property held by the deceased.

If the deceased owned a house or other property in his or her own name, a Grant of Probate will be necessary because the executors don’t have any legal title to sell the property. Similarly if the deceased owned property jointly (as a ‘joint tenant’) the share passes automatically to the other joint tenant without any need for probate.

In contrast, where property was held by the deceased as ‘tenant in common’ a grant of probate will usually be required to dispose of that share. You can find out how the property was owned by checking with the Land Registry or asking a solicitor to establish ownership details.

Contact our probate solicitors in Bristol

At Lyons Solicitors, we provide a comprehensive probate service. We offer a free first consultation so that you can ask us any questions you may have about the probate application process. At this first meeting we will usually assess the estate value for probate and advise you on whether you need to apply for a Grant of Probate.

To book a free initial consultation with our specialist Wills and probate solicitors in Chew Magna, Kingswood or Westbury-on-Trym and the wider Bristol area, please get in touch today. You can use the contact details for each office or, alternatively, fill in the enquiry form to request a call back.