Dealing with a loved one’s estate can be complex and overwhelming, exacerbating your stress at an already difficult time. The UK’s intricate probate laws can be difficult to understand and navigate, so when you are chosen to act as the executor of your loved one’s Will, you may not know where to start. One of the first questions many executors ask is, ‘How much does an estate have to be worth to go to probate UK?’, since the answer will dictate the process they must follow.
At Birch & Co., we specialise in providing probate and estate administration services to clients in Newcastle Upon Tyne and throughout the UK. Coupling a professional service with a human touch, we are committed to guiding and supporting our clients through the probate process with care and sensitivity. We are regularly complimented on our ‘friendly’ and ‘helpful manner’, as well as our ‘professionalism’ and ‘attention to detail’. From your initial meeting with one of our expert probate solicitors through to the conclusion of your matter, you can be sure of receiving first-class legal advice and exceptional client care.
Reach out to Birch & Co’s specialist and supportive team today. Call us on 0191 284 5030 or complete a Free Online Enquiry now to get a bespoke fixed price estimate.
“I cannot fault the professionalism and helpfulness throughout what has been a difficult time. I would not hesitate to use your services again and would recommend you to others.” (Mrs Surtees)
What Is A Grant Of Probate?
Probate is the term for the legal processes involved in administering the estate of a deceased person. Those tasked with the job must value the deceased’s assets, settle any debts and liabilities, and distribute the remainder of the estate to the beneficiaries named in the Will.
A Grant of Probate is a formal legal document that proves the executors are permitted to deal with the estate’s assets. It does not give them their powers; they come from the terms of the Will itself. Accordingly, there are some circumstances in which the executors of an estate may not need to obtain a Grant of Probate. They include when the estate comprises only jointly held property, personal effects, such as artwork or jewellery, or a small amount of cash. This final exception begs the question, ‘How much does an estate have to be worth to go to probate UK?’
How Much Does An Estate Have To Be Worth To Go To Probate UK?
When someone dies, their bank or building society will usually freeze their accounts. The only withdrawals it will permit are in relation to funds required to cover the estate’s inheritance tax liability and the deceased’s funeral costs. This process protects the deceased’s money and ensures it passes to the people and causes named in their Will. Once the executors have obtained the Grant of Probate evidencing their role and proving their right to deal with the deceased’s assets, the bank or building society will release the funds held in the deceased’s accounts.
However, the executors of some ‘small’ estates may be exempt from the requirement to produce a Grant of probate to access the deceased’s funds. Unfortunately, probate law does not specify what will constitute a ‘small’ estate. It is up to the individual bank or building society to set their own limits, which may change periodically.
The range of thresholds at which a bank or building society will close an account and release funds without first seeing a Grant or Probate is broad. Furthermore, some institutions apply those limits to the amount held in a particular account, whereas others base their decision on the overall value of the estate.
By way of illustration, at the time of writing, HSBC ‘s probate threshold is £10,000, whereas NatWest’s is £25,000. M&S money will only release funds up to £5,000 without seeing a Grant of Probate, but Birmingham Midshires will release up to £50,000, which is increased to £175,000 in cases where a solicitor is dealing with the estate.
The only way to ascertain with certainty the probate threshold operated by the bank or building society at which the deceased held accounts is to make enquiries of the relevant team at the institution in question. Most major banks and building societies have a dedicated bereavement team whom you can contact.
Are There Any Cases In Which A Grant Of Probate Is Always Needed?
It’s important to remember that there are some situations in which a Grant of Probate is always needed. For example, you cannot sell any property owned solely by the deceased, such as their house, without first applying for and obtaining a Grant of Probate evidencing your rights to deal with the property. Accordingly, if the estate of which you are the executor includes property, you will require a Grant of Probate regardless of its overall value.
Reach out to Birch & Co’s specialist and supportive team today. Call us on 0191 284 5030 or complete a Free Online Enquiry now to get a bespoke fixed price estimate.
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