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When is Probate Not Needed?

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When a loved one dies, settling their affairs and distributing their estate – at a time of intense grief – is always challenging. But when probate is involved, the process can be even longer and more complex, making it more difficult to come to terms with the loss.

What Is Probate And Is It Always Required?

Probate: Explained

Probate is the legal process of administering the estate of a deceased person. If a will has been left, the named executor will usually assume responsibility for completing the necessary steps, which include:

Applying for a Grant of Probate (the legal authority to manage the deceased’s property).
Organising the deceased’s money, possessions, and other assets.
Settling outstanding debts and paying Inheritance Tax.
Distributing the estate to the beneficiaries named in the will.

Probate ends after all debts and taxes have been paid and assets distributed in full. The process can take up to a year or more, depending on the complexity of the estate (for example, if there is property to sell), and may require the professional advice of probate solicitors.

When Is Probate Not Required?

A common assumption is that, if a will has not been left, a Grant of Probate will always be required. In truth, whether probate is required is determined by the type and value of assets left in an estate and their ownership.

There are four situations when probate is not normally required:

- The Deceased Didn’t Own Property Or Much Money.

‘What estate value requires probate?’ is a common question and there are several possible answers. Under the Administration of Estates (Small Payments) Act 1965, probate is not required where the value of the estate is less than £5,000. However, banks and investment companies will often only release funds at a higher level, which can be £50,000 or more, so check the details for each asset fund carefully.

- Assets Are Held In Trust.

If the deceased transferred assets to a trust before their death, then probate may not be needed as the assets were not personally owned by the deceased at their time of passing. A trust is sometimes used alongside a will to protect certain assets and bypass the need for probate, as ownership of the assets changes once they have been transferred.

- Assets Are Owned Jointly.

Property, cash savings, life insurance policies, and personal possessions are often owned jointly during the lifetime of the deceased and in certain circumstances, therefore, automatically continue to be owned by the survivor after their death – eg. a shared property, money in a shared account etc. Even if a will indicates that an asset should be distributed elsewhere, the law of survivorship will usually ensure the joint owner (known as a beneficial joint owner) retains ownership.

- Savings Are The Only Asset.

Finally, if the deceased only had savings, then probate will often not be required. However, the bank, building society, or investment company will usually set the financial threshold so this will need to be checked.