penses
- there are certain life insurance policies and pension benefits in the estate.
Couples may jointly own their home. There are two different ways of jointly owning a home. These are beneficial joint tenancies and tenancies in common.
If the partners were beneficial joint tenants at the time of the death, the surviving partner will automatically inherit the other partner's share of the property. There is no need for probate or letters of administration unless there are other assets that are not jointly owned. The property might have a mortgage.
However, if the partners are tenants in common, the surviving partner does not automatically inherit the other person's share. Probate or letters of administration will be needed so the personal representative can pass it whoever will inherit the share of the property, according to the will or the rules of intestacy. The property might have a mortgage.
Example: Ayodele and Olujimi are not married. They have one grown-up daughter called Ife. Ayodele and Olujimi own their home as tenants in common. Ayodele dies without leaving a will. Olujimi doesn't have the right to apply for letters of administration but Ife does. She inherits the half share of the home under the rules of intestacy. Olujimi keeps his half share.
For more information about beneficial joint tenancies and tenancies in common, see Buying with someone else in Buying a home. For more information about the rules of intestacy, see Who can inherit if there is no will – the rules of intestacy.
If there is a mortgage on the property
If the property is to be inherited by someone and there is still an outstanding mortgage on it, the mortgage company will either require the mortgage to be paid immediately, or ask the person who inherits the property to take over the mortgage.
If there is a mortgage on the property, there might be a life insurance policy, an endowment policy, or mortgage protection policy which will pay the outstanding mortgage if the person with the mortgage dies. In this case, you should write to the company, asking for a final statement.
If the property is to be sold, the mortgage will be paid out of the sale of the property.
Joint bank accounts
Couples may also have joint bank or building society accounts. If one dies, all the money will go to the surviving partner without the need for probate or letters of administration. The bank may need the see the death certificate in order to transfer the money to the other joint owner.
Probate or letters of administration may still be needed if there are other assets that are not jointly owned.
If the amount of money is small
The estate may be made up of a relatively small amount of money held:
- in a bank or building society account
- in a pension fund
- by an insurance company.
If, after the funeral expenses have been paid, the amount of money held by the organisation is under a certain amount, they might be prepared to release it to you without you having to apply for probate or letters of administration. This amount may vary from one organisation to another, so you will need to check with each one.
Some banks and building societies will release quite large amounts without the need for probate or letters of administration. Also some banks and building societies money will release money needed to pay for a funeral, probate fees and inheritance tax but nothing else until you have been granted probate or letters of administration.
This depends entirely on the policy of the organisation in question. They do not have to release anything, however small the amount of money. If the organisation refuses to release money without probate or letters of administration, you must apply for probate or letters of administration even if it is not otherwise needed.
Do you need a solicitor
Many executors and administrators act without a solicitor. However, if the estate is complicated, it is best to get legal advice. You should always get legal advice if, for example:
- the terms of a will are not clear
- part of the estate is to pass to children under the age of 18
- the person