Isa's

Mandyegg

My mother recently died. The only money she had in single name was two ISA's with different Building Societies. Each society has a different threshold for Probate. One was only £5000 and the money in it was £8000. All other accounts were in joint name and automatically passed to my Dad. Only because we were allowed to pay funeral expenses from the one where the £8000 pound was did we avoid probate and then we still had to complete a form and go to a solicitor and swear an oath to be able to get the money. This wasn't straight forward and the bank rejected my first form causing me a load of grief I could have done without. It was only having experienced this that I now realise ISA's aren't a good way of investing if you want to make life easier for those who are left when you die. There was a comprehensive will and a trust fund and because of these ISA's we nearly had to endure going through probate. It seems silly that you are allowed to invest more than £5000 a year so why put the threshold at that number? Has anyone else had problems like this and shouldn't people be made aware of it. At the minute even ISA's interest rates are poor anyway.

pauletruth

your required to go through probate if the assets are over 5k. you don't have a choice. more so if there is a will. without probate you had no right to touch your mums money.

loubel

Obtaining Probate is just part of the role of being Executor. It confirms the Executor's authority to deal with the Estate. Without it, it is down to the discretion of the banks etc whether they are prepared to release funds.

You mention that your mum has a comprehensive will and a trust fund, which suggests that her estate is probably more complex than just £8K in an ISA. Whether or not you obtain Probate, have you understood and/or taken proper advice on your responsibilities as Executor?

newbutold

pauletruth wrote: »

your required to go through probate if the assets are over 5k. you don't have a choice. more so if there is a will. without probate you had no right to touch your mums money.

I do not believe this to be correct. Each organisation will have it's own limit as to what they will pay out without the need for probate/letters of administration. So, depending on what the estate comprises of, it can be over 5k and no probate required. Therefore they could have every right to distribute their Mum's estate.