Bank requiring probate before releasing funds

This is a very common situation and one that causes a lot of frustration for bereaved families, so let me explain why banks do this and what your options may be.

Why banks require a grant of probate or letters of administration:

When someone dies, their bank accounts are frozen. The bank has a legal obligation not to release the deceased's money to the wrong person. If the bank were to hand over funds without proper authority and it turned out they paid the wrong person, or someone who was not entitled, the bank could be liable for that loss. The grant of probate (where there is a will) or letters of administration (where there is no will) is the legal document issued by the Probate Registry that confirms who has the legal authority to deal with the deceased's estate. It is, in effect, the bank's proof that they are paying the right person.

There is no strict legal obligation on banks to insist on a grant in every case. It is a matter of risk management for the bank. In practice, most banks set their own internal thresholds.

When a bank may release funds without probate:

Many banks will release smaller balances without requiring a grant. The threshold varies from bank to bank but is commonly in the range of 5,000 to 50,000 pounds. Some banks are more generous than others. They will usually ask for a death certificate, identification, and a signed indemnity or declaration instead.

The British Bankers' Association (now UK Finance) has published guidance encouraging banks to take a pragmatic approach, particularly for smaller amounts and where the circumstances are straightforward.

When a grant is almost always required:

Where the account balance is significant, where there are multiple beneficiaries, where there is any dispute about entitlement, or where the account is held in the sole name of the deceased with a large balance, banks will almost always insist on seeing the original grant before releasing funds.

Practical steps you can take:

1. Ask the bank what their specific threshold is for releasing funds without a grant.

2. Ask whether they will release funds on the basis of a death certificate and a statutory declaration or indemnity form.

3. If the amount is below their threshold, push back politely and ask them to escalate internally, referring to UK Finance guidance on bereavement.

4. If you need funds urgently to pay for funeral costs, many banks will release a reasonable sum directly to the funeral director even before probate is granted.

5. If the bank still refuses and you believe their threshold is unreasonably high or their approach is unhelpful, you can complain through their internal complaints process and then escalate to the Financial Ombudsman Service.

6. If a grant is genuinely required, you can apply for probate yourself through the HM Courts and Tribunals Service online portal or by post. The current fee is 300 pounds where the estate exceeds 5,000 pounds in value. The process typically takes several weeks but can be done without a solicitor in straightforward cases.

Joint accounts:

If the account was held jointly with a surviving account holder, the bank should not require probate at all. The money passes automatically to the surviving joint holder by the right of survivorship. If the bank is asking for probate for a joint account, that is worth challenging directly.

If you can tell me a bit more about the amounts involved, which bank it is, and whether there is a will, I can give you more targeted guidance on the best way forward.