What Assets Typically Do Not Pass Through Probate?
Several common types of asset pass directly to someone else when you die, without going through probate at all.
The biggest one is jointly owned property held as joint tenants. It passes automatically to the surviving owner by survivorship, outside the estate and outside the will. Property held as tenants in common is different: your share does form part of your estate.
Joint bank accounts work the same way. On death, the balance usually passes straight to the surviving account holder rather than through probate.
Pensions normally sit outside the estate too. Most are paid out at the discretion of the scheme trustees, based on a nomination form you complete with your provider, so they bypass both probate and, in most cases, Inheritance Tax.
Life insurance policies written in trust are similar. Because the policy is held in trust, the payout goes directly to the named beneficiaries rather than into the estate.
Assets already held in a trust do not pass through probate either, since they are legally owned by the trust, not by you personally.
Finally, very small holdings can sometimes be released without a grant. Many banks will close an account and release the funds without probate if the balance is below their own threshold, which varies from around £5,000 to £50,000 depending on the institution.
It is worth knowing that passing outside probate does not always mean passing outside Inheritance Tax. Jointly owned assets, for example, can still count towards the estate's value for IHT. For more on what to leave out of your will, see my guides on what to never put in a will and how much you can inherit tax-free.
The biggest one is jointly owned property held as joint tenants. It passes automatically to the surviving owner by survivorship, outside the estate and outside the will. Property held as tenants in common is different: your share does form part of your estate.
Joint bank accounts work the same way. On death, the balance usually passes straight to the surviving account holder rather than through probate.
Pensions normally sit outside the estate too. Most are paid out at the discretion of the scheme trustees, based on a nomination form you complete with your provider, so they bypass both probate and, in most cases, Inheritance Tax.
Life insurance policies written in trust are similar. Because the policy is held in trust, the payout goes directly to the named beneficiaries rather than into the estate.
Assets already held in a trust do not pass through probate either, since they are legally owned by the trust, not by you personally.
Finally, very small holdings can sometimes be released without a grant. Many banks will close an account and release the funds without probate if the balance is below their own threshold, which varies from around £5,000 to £50,000 depending on the institution.
It is worth knowing that passing outside probate does not always mean passing outside Inheritance Tax. Jointly owned assets, for example, can still count towards the estate's value for IHT. For more on what to leave out of your will, see my guides on what to never put in a will and how much you can inherit tax-free.