Bank limits without Grant of Probate

JARING

I’m currently helping manage an estate and have run into the varying limits banks impose for releasing funds without a Grant of Probate - though a Death Certificate is always required.

NatWest had “consolidated” the accounts to “simplify” finances, with about £30k in cash ISAs, £18k in Fixed Term Savings, and £7k in a current account. Since the total exceeded their £50k limit, they refused to release ANY funds without probate, even though £18k was locked in a Fixed Term Savings account until year-end.

Waiting for probate can take time, leaving all funds inaccessible.

It seems unreasonable not to release at least some funds - either excluding the fixed-term account or paying out up to their limit.

I’ve seen similar refusals with stocks & shares ISAs, but these are cash ISAs.

The fact that “death certificate limits” vary between banks doesn’t help. Many may not realise how this works, and it can leave executors borrowing money, undoubtably from a bank, to pay IHT before even applying for probate.

Encouraging older customers to consolidate accounts without explaining these restrictions feels pretty cheeky.

Shouldn’t there be standardised limits and a commitment to release funds, even if capped, up to the bank’s own threshold?

Keep_pedalling

Banks will release funds to pay funeral costs (paid directly to the FD) and to pay IHT under the direct payment system.

I don’t think a fixed amount is practicable and it would almost certainly be considerably set lower than the £50k offered by many banks.

fwor

If you think a bank's £50k limit is unacceptable, you might want to consider NS&I, which has a formally published £5k threshold above which Grant of Probate is required. They say that's subject to discretion, but also say that they reserve the right to require it for any amount.

Rightly or wrongly, I suspect that the apparently high levels of fraud committed during the administration of estates are a strong motivation to make it harder and more formalised rather than easier.

JARING

https://forums.moneysavingexpert.com/discussion/comment/81931262#Comment_81931262

We managed to get NatWest to cover the funeral invoice, but the funeral director would only accept full payment directly from the bank. They explained that banks often only pay one invoice, so sending a deposit first and then the final bill could leave them waiting for months to be paid in full, especially until probate is settled.

JARING

It's difficult to see how fraud would be easy given the banks already want the death certificate and a copy of the will.

I suppose nobody has the original will if it's already been sent off for Grant of Probate.

It doesn't help that the Probate Court are unable to give any accurate indication of timescales. In this case all their comms said to expect 12 weeks yet it was granted within 2 weeks. It'd also be nice if they could provide a .pdf copy for your £300 as that's speed things up rather than having to wait for the snail mail.