Small Estate Probate UK: Do You Need a Grant?

Overview

Probate is the formal legal process that gives someone the authority to deal with a person's money, possessions and debts after they die. When someone leaves a Will, the executor named in it applies for a Grant of Probate. Where there's no Will, a close relative usually applies for Letters of Administration instead.

Both documents do essentially the same job: they prove to banks, insurers and other third parties that the person holding them has the legal right to collect in the assets, pay off any debts and distribute what's left to the beneficiaries. Not every estate needs one, though.

If the assets are modest, held jointly with a surviving partner, or kept with institutions that will release funds on less formal evidence, the whole probate application can sometimes be avoided. Understanding which category an estate falls into is the starting point for anyone acting as executor or administrator for the first time.

Key steps

1. Take stock of what the estate actually contains. Before doing anything else, list every asset the deceased held: bank and building society accounts, premium bonds, ISAs, pensions, life insurance policies, shares, and any physical possessions of value. Note whether anything was held jointly. This snapshot tells you roughly what the estate is worth and whether probate is likely to be required at all.
2. Contact each institution individually to ask about their threshold. Banks, building societies and other asset holders each set their own limit for releasing funds without a Grant of Probate. Some will pay out on modest balances with just a death certificate and a signed indemnity, while others insist on a Grant whatever the amount. Write to or call each one and ask directly what they need.
3. Check how any property was owned. If the deceased had an interest in a home, find out whether it was held as joint tenants or tenants in common. Property owned as joint tenants passes automatically to the surviving co-owner outside the estate, which often means no probate is needed for that asset. Tenants in common is treated differently and usually does require a Grant.
4. Consider whether a small estates declaration will do the job. Where the total value falls below an institution's threshold, many providers will accept a written declaration or statutory declaration instead of a Grant. This is a signed statement confirming who is entitled to the money and that the estate is below the probate limit. Ask the institution for their specific form or wording.
5. Settle debts, distribute what's left, and keep clear records. Once funds are released, use them to pay off any outstanding bills, funeral costs and taxes before passing the balance to the beneficiaries named in the Will or entitled under the intestacy rules. Keep receipts and a simple account of what came in and went out, in case anyone queries the figures later.

Common questions