The need for probate doesn't depend solely on the estate's value but rather on how the assets are held and which financial institutions are involved. Here’s an overview of when probate may be required and what factors to consider.
When Is Probate Required?
Probate is typically required if the deceased held assets solely in their name and those assets exceed the institution's probate threshold. This threshold, set by each financial institution rather than the government, varies widely and can range from £5,000 to £50,000. To release the funds, institutions often need to see a Grant of Probate.
If the estate is valued below £5,000, probate may not be necessary, as most institutions release smaller sums without requiring a Grant. Additionally, jointly held assets usually pass directly to the surviving owner without probate. However, if a property is owned as tenants in common (rather than joint tenants), a Grant is more likely to be needed.
Does a Will Affect Probate?
Even if there is a Will, probate might still be required if solely owned assets exceed the institution's threshold. In cases where no Will exists, the process is similar, though the estate administrator applies for "Letters of Administration" rather than a Grant of Probate.
Current UK Probate Thresholds
Each institution sets its own probate threshold. Some notable examples include:
• Barclays: £50,000
• First Direct: £20000
• HSBC: £10,000
• Nationwide: £50,000
• NatWest: £25,000
• NS&I (Premium Bonds): £5000
• Yorkshire Building Society: £30000
It’s important to check with each institution to confirm their requirements, as thresholds can change.
Conclusion
While probate is often necessary for larger or more complex estates, it depends more on how assets are held and the policies of financial institutions than the estate's overall value. It’s crucial to check with each institution to determine if probate is required. However, the Personal Representative (Executor) doesn’t need to handle the probate process or estate administration themselves. They can choose to instruct a professional to manage it on their behalf.
White Deer Legal offer a number of estate administration services via their partnership with Kings Court Trust including probate assistance only. This can help the Personal Representative to manage the complex paperwork and burdensome tasks, helping to ease stress during a difficult time.
