Amidst the grief, you’re suddenly handed a mountain of paperwork, and the pressure to “get it right” can feel overwhelming.
One of the first practical questions executors ask is what assets need to go through probate, and what assets do not go through probate. In this guide, we’ll break down what’s considered an asset in probate and what counts as a non-probate asset, so you can proceed with confidence.
What Is Probate?
Probate is the legal process of dealing with someone’s estate after death. When a person passes away, their assets, property, and personal belongings (collectively known as their estate) must be managed. This includes settling outstanding debts and taxes and distributing what remains to the right beneficiaries.
Grant of Probate vs Letters of Administration
The legal authority required to manage an estate depends on whether the deceased left a valid will:
- Grant of Probate: the official document issued to the executors named in a valid will, granting them the legal authority to administer the estate in line with the deceased’s instructions.
- Letters of Administration: if the deceased died without a valid will, or the named executors are unable or unwilling to act, an administrator (typically the next of kin) must apply for Letters of Administration to gain the authority to handle the estate.
At a Glance: Probate Assets vs Non-Probate Assets
| Usually needs probate |
Usually doesn’t need probate |
| Property solely owned by the deceased |
Property held as joint tenants |
| Bank accounts above a bank’s threshold |
Joint bank accounts |
| Stocks, shares and investments in their sole name |
Life insurance written in trust with a named beneficiary |
| Business assets and high-value personal possessions |
Pensions with a nominated beneficiary |
What Are Considered Assets in Probate?
Property solely owned by the deceased. Check the deeds or ownership records for any real estate. If a house, building, or land was owned exclusively by the deceased, it can’t be transferred or sold without going through probate.
Bank and savings accounts above a certain threshold. Every financial institution sets its own rules. Many UK banks will release smaller balances without a grant, often a few thousand up to £50,000 or more. Larger sums will usually be frozen until probate is obtained.
Stocks, shares, and other investments held solely in their name. Individual stock certificates and investment portfolios held solely in the deceased’s name are typically frozen by the asset holder until a grant of probate is produced.
Business assets and certain valuable personal possessions. Solely owned business interests, along with valuable personal belongings, need to be itemised and verified as part of the probate estate. If the estate includes a rental property or a buy-to-let portfolio, our guide to probate on rental properties covers the additional considerations involved.
What Are Non-Probate Assets?
Assets that pass to someone automatically, rather than through the terms of the will, are generally known as non-probate assets. These typically include:
Jointly owned property. If the deceased owned a home, building, or land as a joint tenant with someone else, the property passes automatically to the surviving joint tenant. It doesn’t form part of the probate estate.
Joint bank accounts. Cash held in joint names usually passes to the surviving account holder. You’ll still need to notify the bank of the death and provide a death certificate, but the funds can generally be accessed without a grant of probate.
Life insurance policies written in trust, naming a beneficiary. Look for any policy explicitly written in trust with a named beneficiary. Because the payout follows the terms of the trust rather than the will, it sits outside the probate estate entirely.
Pensions with nominated beneficiaries. Many pension schemes let members complete a nomination form specifying who should receive their pension benefits. Where a beneficiary has been nominated, the pension trustees will usually pay out directly to that person.
Why Getting This Wrong Can Cause Problems
As an executor, you’re legally responsible for distributing the estate’s assets to the correct beneficiaries. Misidentifying whether an asset requires probate, or misreading its ownership status, increases the risk of distributing assets incorrectly.
This can lead to serious complications and disputes. In some cases, disagreements over how an estate has been handled can escalate into contesting a will altogether.
If you try to access, sell, or transfer assets without the proper legal authority, financial institutions and asset holders will typically freeze the accounts or portfolios involved. Following the wrong process can delay access to the funds needed to settle the estate.
How to Find Out What Your Loved One’s Estate Actually Needs
We’ve put together a few practical first steps:
- Locate the will and check it’s the most recent version. This determines who has legal authority to act.
- Compile a comprehensive list of all assets: property, bank accounts, investments, and personal possessions, alongside any outstanding debts and liabilities.
- Contact each financial institution directly to notify them of the death and confirm their specific requirements.
We’re Here to Help
Our Wills & Probate team can take on as much or as little of the estate administration as you need.
Get in touch today to talk through your loved one’s estate, or email us at hello@hevans.com.
