The term ‘Probate’ is a term which is often used when discussing the general process of dealing with a deceased person’s estate. This is not strictly correct.
So what is ‘Probate’?
In brief, ‘Probate’ is the document which is granted where there are Executors named in a deceased’s will to deal with the estate. If someone dies without a will (known as dying ‘intestate’) then the document granted is in actual fact known as ‘Letters of Administration’ and the Executors are actually referred to as ‘Administrators’. The generic term which covers both Probate and Letters of Administration is ‘Grant of Representation’ (the ‘Grant’).
The Grant is issued by the Family Division of the High Court and it gives the Court’s authority for a person or persons to administer (i.e. deal with) a deceased person’s estate.
And when is it needed?:
It is a myth that Probate is always needed when the total value of the estate is worth more than £5,000. Each individual estate differs depending on what assets there are.
If everything in the estate is owned jointly by the deceased and a second person (husband or wife for example) then everything will automatically transfer into the name of the surviving joint owner and no Grant will be required.
A Grant is usually needed if there is a property/house in the estate (other than if it is jointly owned as beneficial joint tenants as above) and it is usual to need a Grant for all of the other assets such as shares, insurance policies and so on.
Banks and building societies however all have their own criteria for when they need to see a Grant. If there is only a small amount of money in the account they may be happy to release the money without the need for a Grant. Once the value of the account exceeds whatever that particular bank’s limit is then they will need sight of a Grant. It may be that one bank needs a Grant for any accounts with more than £5000 in, whilst the next may need it for any accounts with more than £15000 in. Each bank/building society differs.
To establish whether or not it is necessary to apply for a Grant it is advisable for the Executor/Administrator to write to each organisation individually to ask them whether they require a Grant based on the value of the account/s.
If you would like any further information or have any specific queries in relation to this matter then please do not hesitate to contact Andrea Cox or Hayley Elmes.
