When somebody passes away, a Grant of Probate is usually required before their assets can be distributed. This verifies the validity of their Will and can only be obtained by the named executor, who then has the legal authority to take charge of the deceased’s estate and distribute it according to their wishes. However, Sophie Yates here at Fodens Solicitors warns that banks are releasing large sums of money to families before probate has been granted.
Banks were traditionally allowed to release up to £10,000 without Probate, but with bereaved families struggling to cover costs, the Building Societies Association agreed in 2017 that banks could pay out any funds deemed necessary. However, a universal limit on this was never established, and now in the face of the coronavirus lockdown, banks have started to raise their limits.
This is concerning, as it means that considerable sums are potentially being released into the hands of the wrong people. Individuals could manipulate the system by claiming to be the executor or by producing an out-of-date Will. Family members with good intentions could also end up causing themselves future problems, as not only will they later become accountable to the correct beneficiaries, but they may also run into problems with HM Revenue & Customs should there be any inheritance tax disputes or debts left to pay.
Probate can seem like a long and complicated process, and as such, banks may think they are being helpful by releasing a large portion of the estate. While it may be tempting to take the money, the truth is this will only cause complications further down the line. We would advise that families should look to speak with their Solicitor as soon as possible to receive guidance about what steps to take next. They can help you to avoid any future complications and ensure that the Grant of Probate is acquired smoothly and quickly.
For any questions or guidance on the above, contact us today.
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