With the Autumn 2024 budget announcing fundamental changes to Inheritance Tax relief, further uncertainty has been cast over what is already, for plenty of people, a complicated set of rules to understand. It’s fully reasonable to want to get the estate valuation and probate processes out of the way in the wake of a loss, but many people find this tricky when the goalposts for paying Inheritance Tax and applying for probate seem to keep moving.
These changes make it even less clear when probate is needed and how the value of an estate will affect the process of administration. It is understandable to be keen to resolve estate matters quickly and correctly the first time around, which means you’ll need to take into consideration how the changes to the IHT relief budgets could affect the process.
Our probate and estate lawyers use their years of experience to help clients decide if they need to file for probate for the estate they are managing. They also give advice on how to make tax-friendly portfolios in light of the changes. Our Wills and Inheritance Tax planning services will prioritise your wants and wishes whilst ensuring that you are in compliance with the new guidelines.
If you need more specific help with your case, you can talk to one of our solicitors or specialist lawyers in Ashford, Cranbrook, or Hythe.
Please be aware that this blog is for informative purposes only and should not be taken as legal advice.
Understanding When Probate is Necessary for UK Estates
It can be hard to deal with a loved one’s estate after they die. One question that comes up a lot is, “How much does an estate have to be worth to go to probate in the UK?” The answer isn’t as simple as you might hope.
I’ve helped a lot of people figure out this tricky area, and the truth is that UK law doesn’t set a single clear threshold. Instead, whether or not probate is needed depends on a number of factors, with the rules of the financial institution playing a major role.
What is Probate?
Before diving into thresholds, let’s clarify what probate actually is. Probate is the legal process that gives someone (usually the executor named in a will) the authority to handle a deceased person’s estate. This includes managing bank accounts, selling property, paying debts, and distributing assets to beneficiaries.
A similar process called “grant of letters of administration” can be used if there is no will. This lets administrators run the estate instead of executors.
Financial Institution Thresholds Vary Widely
Perhaps the most confusing aspect is that each bank and financial institution sets its own threshold for when they require probate. Recent examples include:
| Financial Institution | Probate Threshold |
|---|---|
| Barclays Bank | £50,000 |
| Bank of Scotland | £25,000 |
| Natwest | £25,000 |
| Co-op Bank | £30,000 |
| Post Office | £10,000 |
| NS&I | £5,000 to £15,000 |
In other words, if the person who died had, say, £20,000 in a Barclays account, the bank might be able to release these funds without probate. But probate would probably be needed if they had the same amount in a Post Office account.
It’s important to note that these thresholds apply to the total held at each individual institution, not across all accounts So if someone had three accounts at Barclays totaling £60,000, probate would likely be needed, but if they had £15,000 each at four different banks, some might release funds without probate while others might not
When Probate is Almost Always Required
Despite the varying thresholds, there are some situations where probate is nearly always necessary:
- Property ownership: If the deceased owned property in their sole name, probate is almost always required to transfer or sell it
- High-value estates: Estates with significant financial assets typically need probate
- Inheritance tax liability: If the estate exceeds the inheritance tax threshold (currently £325,000), probate will be needed
- Complex family situations: Where there are disputes or complex family arrangements
When Probate Might Not Be Needed
Conversely, probate can sometimes be avoided in cases like:
- Small estates: Generally under £5,000 to £15,000 depending on the institutions involved
- Joint assets: Assets held jointly with a surviving spouse/partner often pass automatically to them
- No property: Estates without property might avoid probate if other assets are below thresholds
Joint Assets and Tenancy Arrangements
The way property is owned can significantly impact whether probate is needed:
- Joint tenancy: When a co-owner passes away, the property automatically transfers to the surviving owner without probate (though a death certificate will be required)
- Tenants in common: The deceased’s share does not automatically go to the survivor but passes according to the will, often requiring probate
The Small Estate Exception
If there’s no property in the estate and less than £5,000 in the bank, probate typically isn’t necessary. This is sometimes referred to as a “small estate” exception, though as we’ve seen, many institutions have higher thresholds.
Probate vs. Inheritance Tax
It’s worth noting that probate and inheritance tax are separate issues, although they often overlap. An estate might need probate even if no inheritance tax is due, or vice versa. However, if inheritance tax is payable, probate will almost certainly be required, as the tax usually needs to be paid before probate can be granted.
The Risks of Skipping Probate When It’s Required
We sometimes meet clients who are tempted to avoid probate to save time and money. This can be risky! If probate should have been obtained but wasn’t, the person handling the estate could face legal complications or personal liability.
Even in borderline cases, obtaining probate provides legal protection and clarity for everyone involved. Think of it like a seatbelt – sometimes it might seem unnecessary for a short journey, but it’s still wise to wear one.
The Probate Process: What to Expect
If you do need to apply for probate, here’s what the process typically involves:
- Valuing the estate: Identifying and valuing all assets and debts
- Completing tax forms: Even if no inheritance tax is due, you’ll need to complete the relevant forms
- Submitting the application: Along with the original will (if there is one) and death certificate
- Paying the probate fee: Currently £273 for all applications (as of 2025)
- Receiving the grant: Usually takes 8-12 weeks for straightforward cases
- Administering the estate: Collecting assets, paying debts, and distributing what remains
The entire process from start to finish typically takes 6-12 months, though complex estates can take longer.
Practical Steps if You’re Unsure
If you’re not sure whether probate is needed for an estate you’re handling, here’s what I recommend:
- Contact each financial institution holding the deceased’s assets to ask about their specific probate requirements
- Check property ownership at the Land Registry to determine how property was held
- Create an inventory of all assets and their approximate values
- Consider consulting a solicitor for a professional assessment, especially for estates near threshold values
Getting Professional Help
While it’s possible to handle probate yourself, many people choose to get professional help, especially for:
- Complicated estates with multiple assets
- Situations involving inheritance tax
- Cases where there might be family disputes
- When executors don’t have time or confidence to handle it themselves
Most probate solicitors offer fixed-fee services or charge a percentage of the estate value. The peace of mind and time saved can be well worth the investment.
Common Misconceptions About Probate Thresholds
There are several misconceptions I frequently encounter:
- “There’s a single national threshold” – As we’ve seen, thresholds vary by institution
- “Probate is only for wealthy estates” – Even modest estates often need probate, especially if property is involved
- “If there’s a will, probate isn’t needed” – Having a will doesn’t eliminate the need for probate
- “Joint accounts always avoid probate” – True for joint tenancy, but not necessarily for tenants in common
Final Thoughts
The question of how much an estate needs to be worth to require probate in the UK doesn’t have a single answer. It depends on the specific financial institutions involved, the types of assets, how they were owned, and sometimes other factors like family circumstances.
When in doubt, it’s better to check than assume. Even a brief conversation with a probate solicitor can save months of uncertainty and potential legal complications down the road.
Probate isn’t always necessary, but when it is, it matters. And if you’re unsure where your situation stands, professional guidance can provide clarity during what is already a difficult time.
Have you handled probate for a loved one’s estate? I’d love to hear about your experiences in the comments below.
How to find out the value of a deceased person’s estate
To value an estate for probate, all you have to do is figure out how much the person’s savings and assets are worth as a whole. This is important because you’ll need to report the value to HM Revenue and Customs (HMRC) within six months of when the person dies, as you must start paying any necessary Inheritance Tax within that time frame.
To find out how much an estate is worth for probate, you must first contact the right people, like banks, pension providers, employers, or utility companies, to find out about any debts and assets the person who died may have had.
Then, you have the option to estimate the value yourself or have a professional valuation done by an estate agent or a chartered surveyor. This value, once confirmed by HMRC, will tell you whether or not a Grant of probate is needed. The threshold for an estate value for probate can range between £5,000 and £50,000 depending on the policies of the financial organisation or bank.
Once you have the value of the estate, you can proceed with applying to the Probate Registry for confirmation of the estate’s value. This is the official valuation that will allow for the legal distribution of the estate in line with the contents of the Will, and determines whether Inheritance Tax returns are necessary.
The new rules that came out after the Autumn 2024 budget change how much an estate should be worth before it needs to go through probate. These changes affect both the assets that the person who died owned and how their estate is organized. They also affect the rules of the institutions that hold those assets.
For estates that are found to be subject to Inheritance Tax, you will need to complete an Inheritance Tax return (IHT400) and submit it to the HMRC. Only then can you distribute the estate.
What does probate involve?
Probate is the process of dealing with the administration of a person’s estate following their death. It many cases, the process will involve settling outstanding debts and paying off any Inheritance Tax, utility bills, mortgages, or loans before you are allowed to start distributing assets. For bespoke advice on your probate needs, talk to one of our probate and estate administration solicitors and lawyers.
When is probate needed? | How much does an estate have to be worth to go to Probate UK
FAQ
How much can you have before probate in the UK?
Thresholds can range between £5,000 and £50,000.
What assets are exempt from probate in the UK?
Non Probate AssetsJointly Held Assets. These are assets that are held jointly by the deceased with one or more individuals. Low Value Assets. Policies Where There is a Nomination. Assets Held in the Deceased’s Sole Name. Investment Products. Life Insurance Policies. Foreign Assets. Business Assets.
What is the minimum amount to avoid probate?
Key Takeaways: Probate is required in California when estate value exceeds $208,850 (on or after April 1, 2025), $184,500 (after April 1, 2022 but before April 1, 2025) or $166,250 (before April 1, 2022).
What is the average value of an estate on death in the UK?
According to the Office for National Statistics(www. ons. gov. uk opens in a new tab), the average inheritance that a person in the UK receives is around £11,000. But this is only a small part of the average net estate value in the UK, which is £334,000. nimblefins. co. uk opens in a new tab).
When is probate required in the UK?
Probate is required when someone passes away and leaves behind an estate with a value of £5,000 or more. What is the average cost of probate in the UK? 1% and 5% of the value of the estate (plus VAT) is usually how how probate fees are calculated in the UK. Estates that have a smaller value are likelier to have a more fixed fee.
Do I need probate if my estate is under £10k?
Probate isn’t usually required if: the estate is worth less than £10,000 – this is because most banks and building societies will release funds under £10,000 without seeing a grant of probate. most of the assets are jointly owned – this is because assets like joint mortgages and savings accounts automatically pass to the surviving owner.
What is a probate threshold in the UK?
Probate Thresholds in the UK Explained Probate is the legal process that sees the distribution of a deceased person’s assets. Each bank has its probate threshold, but typically applies to estates valued over £5,000. However, some institutions have a threshold as high as £50,000.
Do you need probate if a person dies?
You’ll need to find out how much the deceased person’s estate is worth before determining whether you need probate. Probate is not needed for a small estate. If there’s no property in the will and less than £5,000 in the bank, probate isn’t necessary. What if there is joint assets? Probate is not usually needed for joint assets.
How are probate fees calculated in the UK?
1% and 5% of the value of the estate (plus VAT) is usually how how probate fees are calculated in the UK. Estates that have a smaller value are likelier to have a more fixed fee. Individual circumstances will determine exact costs overall.
How does probate work in Scotland?
The process differs in Scotland where probate is known as confirmation. Confirmation is needed on estates worth over £5,000. Estates under £36,000 are referred to as small estates with estates over £36,000 known as large estates. The confirmation process differs depending on where the estate value falls.