One of the first things people want to know when someone dies is whether probate is needed at all, and that usually comes down to value. If you are asking ‘What is the probate threshold in the UK?’, it helps to know that there is no single national figure, because the answer depends partly on the law and partly on the rules each bank or organisation sets for itself. This article explains what the various thresholds are, how they work together, and how to find out whether probate is required for a particular estate.
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What Does ‘Probate Threshold UK’ Mean?
The phrase is used to describe the point at which a grant of representation becomes necessary before an estate can be dealt with. Below the threshold, the people handling the estate can often release funds and close accounts without a grant. Above it, institutions will usually insist on seeing the grant before they part with money or transfer assets.
The important point is that there is not one fixed threshold that applies everywhere. Instead, several different figures come into play, and which one matters depends on what the deceased owned and where.
Is There A Fixed Legal Threshold?
There is one figure set in law that most people encounter, and it relates to the probate application fee rather than to whether probate is required. No court fee is payable where the estate is worth £5,000 or less, and a fee, currently £300, applies to estates above that figure. Because government fees are reviewed from time to time, it is sensible to check the current position on GOV.UK.
Beyond that, the law does not lay down a single value above which probate is always needed and below which it never is. Whether a grant is required in practice depends far more on how the assets were held and on the rules of the institutions involved.
What Probate Thresholds Do Banks And Building Societies Set?
This is where much of the variation lies. Each bank and building society sets its own limit for the amount it will release without sighting a grant. Below that limit, it will usually pay out on production of the death certificate and the completion of some forms. Above it, it will require the grant first.
These limits differ considerably from one institution to another, ranging from a few thousand pounds to substantially more. It follows that an estate might need a grant to deal with an account at one bank but not at another holding a similar sum. The only reliable way to know is to ask each institution what its threshold is.
Does Owning Property Change Things?
Yes, property ownership is often the decisive factor. Where the deceased owned property in their sole name, a grant is almost always required, because the Land Registry will need it before the property can be sold or transferred. The value of the property is not important; it is the fact of sole ownership that triggers the need for a grant.
There is an important exception. Where property was owned jointly as joint tenants, it usually passes automatically to the surviving owner by survivorship, outside the estate that requires a grant. Property held as tenants in common is treated differently, as the deceased’s share forms part of their estate. How a property was held therefore matters a great deal, and it is worth establishing this early.
What About Jointly Held Money And Other Assets?
The same principle applies to money and other assets held jointly. A joint bank account will often pass to the surviving account holder automatically, without a grant. Assets that were owned solely by the deceased are the ones most likely to require a grant once they exceed the relevant institution’s limit.
Some assets have designated beneficiaries and fall outside the estate altogether. Certain life policies and pension benefits, for example, may be paid directly to a named person and so do not depend on a grant. Establishing which assets pass automatically and which form part of the estate is a key part of working out whether probate is needed.
How Do You Find Out Whether Probate Is Required?
A sensible starting point is to draw up a full list of what the deceased owned, noting in each case whether it was held solely or jointly and roughly what it was worth. Armed with that, you can then contact each bank, building society, and other institution and ask directly whether they require a grant. Where there is a solely owned property, you can generally assume a grant will be needed.
This exercise takes a little time, but it gives a clear answer and avoids either applying for a grant unnecessarily or writing to institutions before you know what they require.
How Can Bartletts Solicitors Help?
We help clients to work out whether probate is needed in their situation every day. We can review what the estate consists of, advise whether a grant is required, and, if it is, deal with the application and the administration for you.
To speak to our experts please call us free of charge on 0800 988 3674 or Make A Free Online Enquiry.
