A Guide to Probate

What is probate?

Probate is the legal process of dealing with someone’s property, money and possessions after they die.

It can also refer to the legal document issued by the court, a Grant of Representation, which allows the person named to deal with the estate of someone who has died.

Do I need probate?

Not all estates require probate – it’s only required in about 50% of cases in England & Wales.

Whether it’s required depends on:

• the size of the estate;
• the kind of assets held by the person who has died;
• the requirements of financial organisations where the person who died had assets; and
• how assets are held by the person who has died.

Probate is usually not needed if:

• the value of the estate is less than £5,000;
• all financial institutions have said they will release the funds without probate;
• all property and/or accounts were held jointly with someone who is still alive.

Probate is usually needed if they had:

• A property in their sole name;
• ~+£20,000 with financial institutions, such as banks, building societies, share registrars and investment companies. This amount varies, as each institution sets its own threshold in which it will release the assets without a Grant of Probate or Letters of Administration. Some thresholds can be as high as £50,000 or as low as £5,000;
• ~+£5,000 NS&I Premium Bonds;
• Cryptocurrency, when owned by an intermediary.
• There are ongoing legal proceedings.

What probate thresholds do banks have?

Banks often say that if the person who died had more than a certain amount in their account, they require probate to release the funds.

The thresholds for some of the biggest banks are below.

• Barclays +£50K
• First Direct/HSBC +£10K (depending if there is a will and if not, it depends on your relationship to the person that has died)
• Starling Bank +£10K
• Santander +£50K
• Nationwide +£50K
• NatWest +£25K
• Halifax +£50K
• Lloyds +£50K
• TSB +£25K

These are numbers from August 3rd 2023 and are subject to change.

Steps to take before you apply for probate

Before you apply for probate, make sure you’ve built a full picture of their estate. You can learn more about how to do this in this article.

If a full Inheritance Tax account (‘IHT400 & Schedules’) is required- either because the estate is taxable or, although no tax is due, it does not fit into the HMRC criteria of ‘excepted estate’- you will also have to send the full Inheritance Tax account to HMRC and pay either the first instalment or the full amount of Inheritance Tax (if due), before applying for probate. HMRC needs to send you a code, which is required before you can prepare, sign, and submit the application for probate. Learn more about the Inheritance Tax process in our guide here.

What is a Grant of Representation?

A Grant of Representation is a legal document issued by the court (otherwise known as the Probate Registry, part of the Family Division of the High Court) that allows the person named to deal with the estate of someone who has died. If the person who died had a will, it is typically the responsibility of the executor(s) appointed in the will to apply for a Grant of Representation. There are two main types of Grants of Representation.

If probate is needed, you’ll usually need to apply for one of these two types of grants:

• Apply for Grant of Probate (if there IS a valid will)
• Apply for Grant of Letters of Administration (if there is NO valid will).

How long does it take to get a Grant of Representation?

You’ll usually get the Grant of Probate or Letters of Administration within 16 weeks of sending off the documents.

It’s worth paying (~£1.50 each) for multiple copies of the Grant of Probate or Letters of Administration. You’ll need roughly one per financial institution you’ll want to notify/close. This means you don’t have to wait for them to return the document each time.

What are the different options for the probate process?

There are a variety of different options when it comes to starting the probate process:

• Do-it-yourself (DIY);
• Hand it over to a probate professional; or
• Mix of both.

Want to understand your options?

Would you like to learn more about probate and how our probate services could help you? Take Octopus Legacy’s probate quiz, here.

Worried about making mistakes in the probate process? Short on time? Uncomfortable with the legal jargon and processes that go alongside probate? We can help.

Probate is a load of admin – all when you need it the least. We offer a range of services that make the probate process easier, from helping you get a Grant of Probate, to handling the full estate administration.

Our Grant of Probate services include:

• helping you work out what inheritance tax you need to pay (if needed);
• helping you fill out an inheritance tax form (if needed);
• helping you apply for the Grant of Probate; and
• delivering your Grant of Probate to you once it’s been granted.

Our Full Estate Administration services include:

• all of the above help with Grant of Probate;
• all the administration in dealing with banks, energy companies, HMRC, etc.;
• gathering in all the money and assets;
• paying any creditors (out of the estate assets);
• helping to organise a property sale;
• drafting the estate accounts; and
• distributing the estate afterwards.

Want to learn more? Speak to one of Octopus Legacy’s probate experts for free by arranging an appointment here.