Sorting Bank Accounts and Savings for Probate

When you're handling probate, figuring out the value of the deceased's bank and savings accounts is a fundamental step. It might seem straightforward, yet getting the precise figures is essential for the estate accounts and Inheritance Tax calculations. Let's walk through how to get this right, without the usual faff.

Why Pinpoint Accuracy is Non Negotiable

You must declare the exact amount of money held in every account belonging to the deceased on the day they died. This isn't just about knowing roughly what's there; these figures form part of the total estate value reported to HMRC and the Probate Registry. Getting it spot on avoids queries or potential penalties later.

How to Value Bank and Savings Accounts

This part is usually less complex than valuing property or shares, but it needs methodical attention.

1. Identify All Accounts

First, track down all the bank accounts, building society accounts, savings accounts (including ISAs), and any National Savings & Investments (NS&I) products the person held. Check through their paperwork, bank statements, and letters for clues.

2. Contact Each Institution

You need to formally notify each bank, building society, or NS&I of the death. They will guide you through their specific bereavement process. You will typically need to provide:

• An original or certified copy of the death certificate.
• Proof of your identity and authority to act (like the Will appointing you as executor).

3. Request the Date of Death Balance

Ask each institution for a written confirmation of the balance for each account as at the close of business on the date the person died. It's crucial to specify this date. Also ask them to include any interest accrued up to that date, even if it hadn't been paid into the account yet.

Tip: Dealing with banks can feel like a chore sometimes. Keep a clear record of who you've contacted, when, and what information they've provided. A simple spreadsheet can be your best mate here.

4. Gather the Statements

The bank or institution will send you official statements or letters confirming these balances. Keep these safe; they are your evidence for the probate application and IHT forms.

What About Joint Accounts?

Accounts held in joint names usually pass automatically to the surviving owner under the rule of survivorship. This means the money doesn't typically form part of the probate estate. However:

• Inform the Bank: You still must inform the bank about the death so they can update the account details.
• Inheritance Tax: Be aware that for IHT purposes, half (or sometimes a different proportion, depending on contributions) of the money in a joint account might still be considered part of the deceased's estate. Get the date of death balance confirmed for IHT calculations, even if the account passes directly to the survivor.

Don't Forget Physical Cash

If you find cash belonging to the deceased at their home, this also needs to be counted accurately and included in the estate valuation. Make a note of the amount and where it was found.

Wrapping Up

Tallying up bank accounts and savings is about careful checking and clear communication with financial institutions. Get those date of death balances confirmed in writing, keep good records, and you've nailed a key part of the probate puzzle.

Well done for ticking this off. You are moving things forward steadily. We are right beside you for the next steps.