How Much Should the Estate Be Worth Before I Need Probate in the UK?

In most cases, probate is necessary when a deceased person’s estate exceeds £10,000. Probate may not even be necessary if the majority of the estate’s assets were held jointly.

The legal procedure you must follow to handle a deceased person’s estate is called probate. Following this procedure, you will obtain a document that has been approved by the government, which you can present to banks, the land registry, and other establishments. This gives you the power to gather resources and allocate money to beneficiaries.

You will require a grant of letters of administration or a grant of probate, depending on your particular circumstances. Probate may not even be necessary in certain circumstances, but we’ll talk more about that later.

Understanding probate and its requirements is crucial when dealing with a deceased person’s estate. This guide will delve into the intricacies of probate, including the threshold value that triggers the need for it in the UK.

What is Probate?

Probate is the legal process of administering a deceased person’s estate. It involves identifying and valuing assets, settling debts and taxes, and distributing the remaining assets to beneficiaries as per the will or intestacy rules.

When is Probate Required in the UK?

The need for probate in the UK hinges on the value of the estate and how assets are held. Here’s a breakdown:

Threshold Value:

£5,000 or less: Generally, probate is not required if the estate’s value is £5,000 or less. Most financial institutions release funds below this threshold without requiring a Grant of Probate.
Exceeding £5,000: If the estate’s value exceeds £5,000, probate might be necessary depending on how assets are held.

How Assets are Held:

Solely Held Assets: If the deceased held assets solely (in their name only), and the balance in any one of these accounts exceeds the relevant financial institution’s probate threshold, probate is likely required.
Jointly Held Assets: Probate is usually not required for jointly held assets, such as property owned as joint tenants. These assets automatically pass to the surviving joint owner. However, specific arrangements made during the deceased’s lifetime, such as owning property as tenants in common, might necessitate probate.

Financial Institution Thresholds:

Financial institutions set their own probate thresholds, which can vary significantly. Some common thresholds as of August 2023 include:

Aviva: £50,000
AXA: £10,000
Bank of Ireland: €35,000 (approx. £30,000)
Bank of Scotland: £25,000
Barclays: £50,000
Birmingham Midshires: £50,000
Co-op Bank: £50,000
First Direct: £20,000
Halifax: £50,000
HSBC: £10,000
Lloyds TSB: £50,000
M&S Money: Decided on a case-by-case basis
Nationwide: £50,000
NatWest: £25,000
NS&I (Premium Bonds): £5,000
Post Office: £30,000
Royal Bank of Scotland: £25,000
Sainsbury’s Bank: £25,000
Santander: £50,000
Skipton Building Society: £30,000
Tesco Bank: £50,000
TSB: £50,000
Virgin Money: £35,000
Yorkshire Building Society: £30,000

It’s crucial to note that these thresholds are subject to change by the respective institutions. Always confirm the specific requirements with the relevant institution when dealing with a deceased person’s estate.

What Happens if Probate is Required?

If the estate’s value exceeds the relevant thresholds, obtaining a Grant of Probate becomes necessary. This involves:

Completing the application form: PA1P (with a Will) or PA1A (without a Will).
Submitting the application to the Probate Registry: Along with the death certificate and (if applicable) an Inheritance Tax (IHT) form.
Waiting for the Grant of Probate: Typically takes up to 8 weeks, but delays are possible.

The cost of obtaining a Grant of Probate in England and Wales is £273 for estates over £5,000. There’s no fee for estates valued at £5,000 or less.

What Happens After Probate is Granted?

Once the Grant of Probate is obtained, the Executor or Administrator has the legal responsibility to:

Deal with the deceased’s assets: Including property, possessions, and money.
Settle debts and taxes: Including Inheritance Tax if applicable.
Distribute the remaining assets to beneficiaries: As per the will or intestacy rules.

The Executor or Administrator can choose to handle these tasks themselves or appoint a professional to do so.

Understanding the probate threshold and its implications is crucial when dealing with a deceased person’s estate. By considering the estate’s value, how assets are held, and the relevant financial institution thresholds, you can determine whether probate is required and proceed accordingly.

Do I need probate?

Probate is necessary following approximately 80% of deaths in the UK and may be required regardless of whether a will is present or not. You can try the following two methods to see if you require probate:

Get a free probate consultation

By calling 020 3695 2090, you can have a free consultation with one of our probate specialists if you need assistance determining whether you need to file for probate. We’ll spend a few minutes discussing your circumstances and providing advice regarding the estate you’re handling.

How Much Does an Estate Have to be Worth to Go to Probate | Probate Process

FAQ

How much money before probate is required in UK?

How much money can you leave in accounts before probate is required? The probate threshold for banks and building societies in England and Wales can be anywhere between £5,000 and £50,000. Each institution has their own rules and limits.

How much does an estate need to be worth for probate UK?

When is probate not required? Generally, probate isn’t required if the estate is valued at less than £5,000, as most financial institutions will release funds lower than this. Also, if assets were held jointly, probate is often not required as these assets automatically pass to the surviving spouse or civil partner.

Does every death have to go through probate UK?

Check if probate is needed You may not need probate if the person who died: only had savings. owned shares or money with others – this automatically passes to the surviving owners unless they’ve agreed otherwise. owned land or property as ‘joint tenants’ with others – this automatically passes to the surviving owners.

What is the net qualifying value for probate?

The net qualifying value of the estate. The net qualifying value is what you have based on all your assets and liabilities. This is essentially a full review of gifts, Trusts, etc. minus any assets left to a spouse, civil partner, or charity that are classed as exempted.

Do I need probate if my estate is less than £5000?

Generally, probate isn’t required if the estate is valued at less than £5,000, as most financial institutions will release funds lower than this. Also, if assets were held jointly, probate is often not required as these assets automatically pass to the surviving spouse or civil partner.

When is probate required?

Whether Probate is required depends on the type and the value of the assets in the Estate. For example, if there is a property held in the deceased’s sole name, Probate will be required to sell or transfer it. In addition, Probate will usually only be required where the value of the assets are over a certain amount.

Do all estates need probate?

Although probate is not needed for all estates, estate administration must always be carried out. How much does an estate have to be worth to go to probate? Whether probate is required does not depend solely on the value of the estate. Instead, it relies on how the assets are held and which financial institutions they are held with.

How much does probate cost?

In most cases, probate costs somewhere between £1,000 and £5,000. However, larger estates can easily cost upwards of £20,000. This is because different probate solicitors charge their clients in different ways. Some offer a fixed-price quote upfront, while more traditional providers tend to work on an hourly rate or percentage basis.