Banks raise limits on how much cash can be released without grant of probate.
Some of Britain’s largest banks are raising the limit on the amount of money they will release from deceased customers’ accounts to their relatives without the need for the grant of probate.
When someone passes away, banks and building societies will usually freeze their accounts until the executor of their Will has received an official document from a Probate Registry.
Obtaining a grant of probate can take some time depending on the complexity of the estate; the executor is able to access only the money necessary to pay for the funeral and inheritance-tax bills (limit is usually around £15,000 to £20,000). Some banks and building societies will allow bereaved customers dealing with relatively small amounts of money to bypass this admin-heavy task and close accounts with just a death certificate.
Recently some banks have increased their limit to help make life easier for executors’ dealing with deceased relative’s estates.
– Lloyds Bank has raised its limit from £25,000 to £50,000.
– Royal Bank of Scotland has increased its limit from £15,000 to £25,000.
– HSBC has removed its £20,000 limit and now assess all cases individually.
– Nationwide has confirmed that it is currently reviewing its probate limit.
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