What is a Grant of Probate and when is it needed?
Common questions following the death of a loved one include: what is a Grant of Probate? When do I need one? Do I need one if there is less than £15,000 in the bank? My spouse left everything to me in a Will so why is the bank asking for a Grant? For the answers, keep reading.
What is a Grant of Probate?
A Grant of Probate is a certificate issued by a Probate Registry in England and Wales. It is an important official document. It proves that the Personal Representatives (for example, Executors) of a dead person have the authority to deal with that person’s Estate.
Note: if there is no Will the grant will be called a “Grant of Letters of Administration”, rather than a Grant of Probate. Collectively, these grants are called “Grants of Representation”. In this article we use “Grant” as a catch-all term. We also use the term “Executors” to refer to all Personal Representatives.
When is a Grant required?
It is the Executors’ job to administer the deceased’s Estate, which means cashing in bank accounts, selling assets, transferring shares, distributing money and so on.
Collecting assets
Sometimes Executors can administer simple Estates without a Grant. Very often, however, a Grant will be required by the banks, building societies, purchasers of property, insurance companies, stock brokers etc. In these cases, the Executors must apply for a Grant.
Summary of when a Grant is required:
|
Deceased’s asset/s |
Is a Grant required? |
|
Land (unless all land held jointly as “joint tenants”) |
Yes |
|
Shares |
Yes |
|
Any one bank account or insurance policy worth over £15,000 (unless held in joint names) |
Yes |
|
Each bank account and insurance policy worth less than £15,000 |
Maybe not, but it depends on the banks (etc) involved. Lloyds TSB and Nationwide are just two of the banks which will usually not require a Grant if they hold accounts totalling less than £15,000 (often they are less lenient when it comes to insurance policies). There are no hard and fast rules but any institution will make their requirements clear to the Executors when contacted. |
|
Total Estate worth less than £5,000 |
Almost certainly not. This is referred to as a “small Estate” and most institutions will not need to see a Grant. However, they do still have the right to see one. |
|
Everything owned jointly as “joint tenants”, e.g. with spouse / civil partner |
No. Everything will pass automatically to the survivor. |
|
Cash and belongings such as cars, furniture, jewellery and clothing |
Probably not. The Executors should be able to deal with these items without a Grant, unless particularly valuable. |
|
Pensions and insurance policies with a nomination |
Probably not. These should pass “outside the Estate” and a Grant will generally not be required. |
Even if a Grant is required, Executors will often be able to deal with some assets before an application is made. For example, the deceased’s car can be sold, furniture from the house can often be distributed or sold, funeral expenses can be paid, and some banks may be happy to close small accounts with just an application form and death certificate.
Joint bank accounts and joint property
If spouses or civil partners own a house jointly or keep joint bank accounts, these will often be held by them as “joint tenants”. If so, no Grant will be required for these assets, and instead they will pass automatically to the survivor (though the bank and Land Registry, etc, will still need to see a death certificate).
A Grant is needed for property, unless owned as "joint tenants"
Is a Grant needed even if there is a Will?
Even in the case of a simple Will leaving everything to a surviving spouse, a Grant may be required.
Does it matter if a Grant of Probate is required?
If a Grant is required, it will be necessary to obtain all the information about the Estate, and this takes time. Also, there is a small cost (£40 plus £1 per copy if you are using a solicitor) plus legal fees, and the Executors will have to swear an oath (which costs a few pounds). But applications for Grants are very common and should not be a cause for concern.
Should I split my bank accounts while I’m alive so I have less than £15,000 in each bank?
In short, no! A Grant may still be required, so do what is best for you and your finances during your lifetime, and don’t worry about whether your Executors will have to apply for a Grant of Probate after you die. If you do have concerns about leaving funds with quick access, consider opening an account with a different bank up to (say) £5,000. Your Executors may be able to access this without a Grant.
Everyone’s situation is different so please do not rely on this article for legal advice. If you want to discuss matters with a solicitor, please contact Winston Solicitors.
If you would just like to comment or share experiences, please use the comment form below.
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By monyea, 3 February 2009 @ 9:48 pm
If I filled my taxes as married does the state of texas recognize me as being married.
By Law Chat, 24 February 2009 @ 10:42 am
Monyea,
Oops - I’m afraid Law Chat is for law in England and Wales only.
By Sarah, 8 April 2009 @ 10:00 am
My late ex husbands property was in a family discretionary trust. He willed the property to our daughters. Council has confirmed that the property can rightly be inherited by them. As the property was valued as it happens too highly for probate in March 2008 and remains unsold, a. can the probate be reassessed taking into account the current market values and b. if it is in a trust, can probate be avoided altogether?
Sarah
By Law Chat, 9 April 2009 @ 10:41 am
Sarah, that’s quite a complicated question; I’m afraid we can’t give a sufficient answer in these comment boxes. If you’d like to instruct Winston Solicitors please use the contact information at the very bottom of this page (and ask for Tom Hiskey).