When someone passes away, one of the first and most critical tasks for the executor or administrator of their estate is to inform the relevant banks about the death. This is a crucial step because banks Will usually freeze the deceased's accounts to ensure that the funds are handled correctly and only released to the rightful person. However, whether the funds in these bank accounts will require probate before they can be accessed depends on several factors.
When you might not need probate for bank accounts
While probate is often necessary to access funds from a deceased person’s bank account, there are specific situations where it may not be required:
1. Joint accounts
If the deceased held a joint account with a spouse or partner, probate is typically unnecessary. The surviving account holder automatically becomes the sole owner of the account upon providing the bank with a death certificate. The transfer process usually involves a meeting at a local branch, where necessary forms are filled out to change the account holder's name.
2. Low balance accounts
If the deceased's bank account holds only a small amount of money, probate may not be necessary. Banks set their own thresholds for what constitutes a "low balance" and these limits can vary widely. For example, one bank might release funds if the account balance is under £50,000, while another might set the limit at £5,000. It’s important to contact the bank directly to understand their specific policies. In some cases, even if the account balance is below the threshold, the bank may still require a grant of probate before releasing the funds.
3. Paying for funeral costs and inheritance tax
Banks can also release funds from a deceased person's account to cover funeral expenses or inheritance tax bills before probate is granted. To do this, the executor or administrator Will need to provide the bank with the funeral invoice or a letter from HMRC (Her Majesty's Revenue and Customs).
You might like to read: Inheritance Tax Planning – How to avoid IHT
When probate is usually required
In most other circumstances, you Will need to obtain a grant of probate (if the deceased left a Will) or letters of administration (if there was no Will) to access the funds in the deceased’s bank account. This legal document proves that you have the authority to manage the estate and ensures that the money is released to the correct person or distributed according to the Will.
Current probate thresholds for UK financial institutions
These thresholds are subject to change by the individual institution, it is recommended that you check with the relevant institution when required.
- 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
Need help with probate?
Navigating the process of managing a loved one's estate can be complex, especially when it comes to accessing bank accounts. While probate is often required, there are instances where you may be able to bypass this step, particularly in the case of joint accounts, low balances, or specific expenses like funeral costs. However, each bank has its own rules and requirements, so it’s essential to communicate directly with them to understand what is needed in your specific situation.
If you find yourself needing guidance through this process, whether it’s with writing a Will or navigating probate, Wills Services is here to help. We offer online Will writing and probate services designed to make these challenging times a bit easier.
