Probate is a legal process which is often needed when a person dies. It gives an individual, or a group of people, the legal authority to deal with a deceased person’s property, money and possessions – known as their ‘Estate’. Probate is not required every time a person dies and examples of this include if the deceased passes all their assets to a surviving husband or wife or owns very little, known as a ‘small estate’. In this article, how much money can you have in the bank before probate, we take a look at the process involved.
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What steps to take when someone dies
In addition to dealing with the funeral arrangements, there are a number of steps that need to be taken before you can deal with the deceased’s financial affairs:
- You should register the death within 5 days. By doing this you will obtain a death certificate. This is an important document that you must keep safe.
- If the deceased left a will, an executor will have been named. This is the person responsible for handling the estate of the deceased. Once the executor has the original copies of the Will and the death certificate, they can apply for probate. If someone dies without a will, the application process is the same, but you will get ‘letters of administration’ rather than a ‘grant of probate’.
- You will need to estimate any inheritance tax liability and notify HMRC of the same. We can advise upon this.
- Once you have the Will, death certificate, and grant of probate, you are then in a position to notify the banks, utility and insurance companies.
How much can you have in the bank before probate?
The term Probate refers to a legal document which gives the Executor or Administrator authority to deal with the deceased person’s assets. This document is called a Grant of Probate if there is a Will or a Grant of Letters of Administration if there isn’t.
This document is important because banks won’t allow just anyone to withdraw money from a deceased person’s account. If you have a Grant of Probate it confirms that you have the legal authority to do so
When someone dies, their bank will need to be notified and their bank accounts will need to be closed. A Grant of Probate is sometimes required to do this.
It’s generally considered that for small Estates where no property was owned and everything else is worth less than £15,000, Probate won’t be needed. But this isn’t true in every situation. Banks will usually release money up to a certain amount without requiring a Grant of Probate, but each financial institution has its own limit that determines whether or not Probate is needed.
You’ll need to add up the total amount held in the deceased’s accounts for each bank. If the total held by each bank or building society falls below their threshold, then you usually won’t need a Grant of Probate for the money to be released. If it falls above the threshold, then you probably will need to apply for Probate.
Each financial institution also has different rules on whether the threshold is confined to the amount held in the account, or if this relates to the overall value of the Estate. Some banks and financial institutions state that Probate is required if there is £30,000 being held in an account, whereas others state that Probate is needed if the entire Estate is worth £30,000.
The final decision as to whether probate is or isn’t needed lies with the bank or building society. These institutions have authority to request a Grant of Probate before releasing funds, even if the value falls below their stated threshold.
The threshold for Probate can range from £5,000 to £50,000, depending on which banks and financial institutions are holding the deceased person’s assets. The probate threshold for each bank and building society is different. Below is a list giving indicative amounts, at the date of this article, for a range of banks and building societies. It is important to check directly with them for their latest threshold figures.
Aviva – £50,000
AXA – £10,000
Bank of Ireland – £10,000
Bank of Scotland – £50,000
Barclays – £50,000
Birmingham Midshires – £25,000
Britannia – £30,000
Cheltenham & Gloucester – £25,000
Co-op Bank – £30,000
First Direct – Decided on a case-by-case basis. (If beneficiaries are children: £30,000. If beneficiaries is a spouse: £50,000. Might be lower for others, in which case you have to contact First Direct.)
Halifax – £50,000
HSBC – Decided on a case-by-case basis. (If beneficiaries are children: £30,000. If beneficiaries is a spouse: £50,000. Might be lower for others, in which case you have to contact HSBC.)
Lloyds TSB – £50,000
M&S Money – £15,000
Nationwide – £50,000
Natwest – £25,000
NS&I – £5,000 to £15,000 depending on the will and the number of executors
Post Office – £10,000
Royal Bank of Scotland – £25,000
Sainsbury’s Bank – £20,000
Santander – £50,000
How we can help
We have a proven track-record of helping clients draft their wills and deal with probate. This includes relatively straightforward estates and also complex estates where assets are held all over the world. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact our Wills and Probate Solicitors
It is important for you to be well informed about the issues and obstacles you are facing. However, expert legal support is crucial in terms of guiding you through the often emotional process of probate in a sensitive and supportive manner and help ensure you achieve a positive outcome.
To speak to a member of our New Enquiries Team today simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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