Can I avoid Probate?
Avoiding Probate with the £15,000 Probate Threshold
Probate is often not required if an estate (which is the sum of all the assets, including property and money) is valued at under £15,000. If this is the case, then it is legally possible to administer the estates by filling out a small claims indemnity. This can be obtained from the financial institution that holds the assets of the deceased. However, every financial institution has its own stipulations and so some may still require Probate even when the estate is under this threshold.
When do I need a grant of Probate?
In the majority of cases if the value of the estate is over the threshold of £15,000 which means that a grant of Probate will be needed in order to administer the estate.
Avoid Probate by setting up Trusts
It is possible to avoid Probate if some planning is done with professional advice. One of the ways in which this is possible to achieve is by making use of Trusts. When assets are placed into Trusts, they are placed outside of an estate and are controlled by the trustees. This means that they can be disposed of without requiring Probate. This is often why life insurance policies are held in Trust, so that they can be paid directly to a beneficiary, without requiring probate. It is also possible to place other assets such as property into Trusts, and therefore mitigating the need for Probate and also taking them out of the estate for Inheritance Tax purposes.