Savings - Risk to Savings over £100k that are pending probate

amethystcash

Can anyone offer any advice please.

A relative of ours died in June and the estate is still awaiting finalisation. Its being handled by a solicitor who is awaiting confirmation (probate) before the estate can be distributed. The relative had more than £100k in savings accounts and ISAs with one bank. It's not one of those that have been in the news recently as having problems, but given the way the whole economy seems to be heading for meltdown, does the family have any cause for concern?

Is there a risk that anything over £50k could be lost should the bank get into trouble or are there different rules when the funds are in this pending situation and are currently in the name of someone who is deceased?

I don't know if it makes any difference but our relative left a will and there will be 2 beneficiaries, who are due to receive about £55k each.

Update: been doing a bit more reading and now realised that the funds of the estate might now be in the hands of the solicitor in a client fund and not in the original bank accounts of our relative as we thought - have to check this out. This makes me even more worried as it would seem that the protection or compensation then becomes much more complicated.

Anyone else in a similar position?

Scampy

I'm not sure if the same rules apply when the client is deceased but I understand that any funds held by a solicitor in the client account is treated just like any personal bank account i.e the first £50k would be covered if the bank they are with was to go bust (whilst the funds were available). It's unlikely the solicitors are banking with anyone to be worried about though so I wouldn't think too much about it for now.