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Small Estates (No Probate Required)

Also known as: Small Estate Threshold, Low Value Estate

Definition

A small estate is one where the total value of assets is low enough that the executor can access funds and administer the estate without obtaining a formal grant of probate.

Understanding small estate thresholds can save executors significant time, stress, and costs—potentially avoiding months of probate processing and £273 in court fees.

What Does Small Estate Mean?

Under the Administration of Estates (Small Payments) Act 1965, probate is not legally required for estates below £5,000 in value. However, this statutory threshold is just the minimum—in practice, each bank, building society, and asset holder sets its own probate threshold, typically ranging from £5,000 to £50,000. There's no single UK-wide threshold, which is the key source of confusion for most executors. Even below their stated threshold, institutions retain complete discretion to request probate if they have concerns about will validity, executor authority, or potential disputes.

The process works differently than many people expect. Executors must contact each institution separately to ask their specific probate threshold. For example, major high street banks typically set thresholds between £25,000 and £50,000, while smaller credit unions might require probate for amounts over £5,000 to £15,000. Crucially, assets are totaled per institution, not across the entire estate. Sarah's father died with £15,000 in a NatWest account, £8,000 in a Nationwide savings account, and a jointly owned home. Both banks released funds without probate because each holding was below their individual threshold (NatWest's was £50,000, Nationwide's was £30,000), and the house passed automatically to her mother. The entire process took five weeks rather than the 12-16 weeks typical for full probate.

However, the same total estate value might require probate depending on how assets are distributed. David's mother died with £45,000 in a single Barclays account. Despite this being a relatively modest estate with no property, Barclays' threshold was £30,000, requiring David to complete the full probate process. This illustrates that "small estate" is institution-specific, not based on total value—a £45,000 estate might require probate while a £27,500 estate does not.

Important considerations complicate the picture further. Property or real estate almost always requires probate regardless of value, except in rare circumstances. Jointly owned assets—including joint bank accounts and property held as joint tenants—pass automatically to the surviving owner through the right of survivorship and don't count toward probate thresholds at all. Emma's aunt died with £25,000 in a Halifax account and a jointly owned home worth £280,000. Only the £25,000 counted toward whether probate was needed because the house transferred automatically via Land Registry with just a death certificate. Institutions may also require probate despite low values if there are family disputes, unclear executor appointments, or questions about will validity.

Common Questions

"What is the threshold for a small estate where probate isn't required?" There's no single UK-wide threshold. The Administration of Estates (Small Payments) Act 1965 sets a legal limit of £5,000, but each bank and building society sets its own probate threshold—typically between £5,000 and £50,000. You must check with each institution holding the deceased's assets to confirm their specific requirements.

"Can I avoid probate if the estate is worth £20,000?" Possibly, but it depends on which institutions hold the assets. Many high street banks release funds up to £25,000-£50,000 without requiring probate, but this varies by institution. Contact each bank, building society, and asset holder directly—they have discretion to request probate even below their stated threshold if they have concerns.

"Does jointly owned property count towards the small estate threshold?" No. Jointly owned assets (like property held as joint tenants or joint bank accounts) pass automatically to the surviving owner through the right of survivorship and don't require probate. Only assets held solely in the deceased's name count towards whether probate is needed.

Common Misconceptions

Myth: "If the estate is under £5,000, I definitely don't need probate."

Reality: While the Administration of Estates (Small Payments) Act 1965 sets £5,000 as a legal minimum, individual institutions can still require probate even below this threshold if they have concerns about executor authority, will validity, or potential disputes. Additionally, if the estate includes property—even low-value property—probate is typically required regardless of total value.

Myth: "Small estate means no inheritance tax reporting or paperwork."

Reality: "Small estate" refers only to whether probate is required—it's separate from inheritance tax obligations. Even if you don't need probate, you may still need to report the estate to HMRC if it exceeds certain IHT thresholds (currently £325,000 nil-rate band). Conversely, an estate could require probate but have no IHT liability. These are three different concepts: probate requirement, IHT reporting requirement, and IHT liability.

  • Probate: The formal legal process that small estates allow executors to avoid when asset values fall below institutional thresholds.
  • Grant of Probate: The specific court document proving executor authority that isn't required for genuinely small estates below institutional limits.
  • Estate Administration: The overall process of managing a deceased's estate, which is significantly simplified and faster for small estates.
  • Executor: The person who benefits from small estate rules by accessing funds with just a death certificate rather than waiting months for probate.
  • Excepted Estate: A commonly confused concept that relates to inheritance tax reporting thresholds, not probate requirements—completely separate from small estate rules.
  • Valuation: The process executors use to calculate total assets at each institution to determine if holdings fall below probate thresholds.

Need Help with Your Will?

Understanding small estate thresholds highlights the importance of clear estate planning. By documenting all assets and appointing capable executors in your will, you make it easier for your loved ones to determine whether probate is needed and navigate the process efficiently.

Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete, legally binding will plus three expert guides. Preview your will free before paying anything—no credit card required.

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.