Assets That Don't Need Probate UK (2026) | What Passes Outside the Estate
Updated 13 May 2026 · 8 min read · England & Wales
Not everything in an estate requires a Grant of Probate before it can be transferred or paid out. Understanding which assets bypass probate — and structuring your estate to maximise them — can save your family weeks of waiting and thousands of pounds in administration costs.
Assets that automatically pass outside probate
1. Jointly owned property held as joint tenants
When two or more people own property as joint tenants, the survivorship rule applies automatically: the surviving owner(s) inherit the deceased’s share without probate. The legal mechanism is that the joint tenancy simply contracts to the surviving owners — no court order or Grant is required.
To confirm the property is held as joint tenants rather than tenants in common, check the Land Registry title register (form OC2, £7 online). If the register shows a Form A restriction(“No disposition of the registered estate by a sole proprietor of the registered estate... is to be registered”), the property is held as tenants in common and the deceased’s share does require probate.
The surviving joint tenant notifies the Land Registry by sending a DJP form (death of joint proprietor) with a certified copy of the death certificate — no probate grant needed.
2. Pension death benefits
Most pension schemes (defined contribution workplace pensions, SIPPs, personal pensions) are held in discretionary trust by the pension trustees. When you die, the trustees decide who receives the death benefit — guided (but not bound) by your expression of wishes (nomination form). Because the pension is held in trust and not owned by you personally, it does not form part of your estate and does not require probate.
Key actions:
- Complete an expression of wishes form for every pension scheme you have.
- Review and update the form whenever your circumstances change (marriage, divorce, birth of a child).
- Divorce does not automatically remove an ex-spouse from a pension nomination — you must update the form manually.
Note: from 6 April 2027, unused defined contribution pension pots will be included in the IHT estate, but they will still not require probate to pay out — the trustees pay directly to beneficiaries, who then account for the IHT liability.
3. Life insurance written in trust
A life insurance policy is either:
- Written in trust — proceeds are held by trustees and paid directly to named beneficiaries, bypassing the estate entirely. No probate needed; usually paid within days. Also outside the estate for IHT.
- Not written in trust (paid to the estate) — proceeds form part of the estate, subject to probate and potentially IHT. This is the default for many older policies.
Check every life insurance policy you hold. If it is not written in trust, contact the insurer — most will provide a trust deed at no charge. Writing a policy in trust takes minutes and can save significant IHT and probate delays.
4. Bank and building society accounts below the small-estate threshold
Most UK banks and building societies operate a small-estate procedure: if the account balance is below their internal threshold, they will release funds without a Grant of Probate on production of a death certificate and an indemnity form. Common 2026 thresholds:
| Institution | Typical small-estate limit |
|---|---|
| Barclays | £50,000 |
| HSBC | £50,000 |
| Lloyds / Halifax | £50,000 |
| NatWest / RBS | £25,000 |
| Nationwide | £30,000 |
| Santander | £50,000 |
Thresholds are per institution and can change. Always confirm directly with the bank. Thresholds apply per account or per institution depending on the bank’s policy.
5. NS&I savings (up to £5,000 via payment-on-death)
NS&I (National Savings & Investments) offers a payment on death facility for Premium Bonds and some other products, allowing up to £5,000 to be paid directly to a nominated person without probate. Above £5,000, NS&I requires a Grant. Premium Bonds can remain in the draw for up to 12 months after the bondholder’s death — any prizes won during that period are paid to the estate.
6. Assets held in a trust
Assets held in a trust during your lifetime are not part of your estate at death. They pass according to the trust deed — not your will, and not through probate. Common examples:
- Assets placed in a bare trust for children
- Family discretionary trusts established during your lifetime
- Assets in a life interest trust following a first death
Trusts set up by a will (testamentary trusts) do require probate to be established, because the will itself must be proved first. It is trusts created during your lifetime that bypass probate.
7. Jointly held bank accounts
A joint bank account automatically passes to the surviving account holder by survivorship — the bank simply removes the deceased’s name on receipt of a death certificate. No probate required.
Assets that always require probate (above small-estate thresholds)
- Property held solely in the deceased’s name
- Property held as tenants in common (the deceased’s share only)
- Sole bank accounts above the bank’s small-estate threshold
- Stocks, shares, and investment accounts above thresholds
- ISAs (unless below the institution’s threshold)
- Business interests and company shares
- Debts owed to the deceased
How to structure your estate to minimise probate
- Hold property with your spouse as joint tenants — confirm via the Land Registry.
- Write all life insurance in trust — contact each insurer to check and execute a trust deed if needed.
- Keep pension expression of wishes forms current — review annually or after any life change.
- Keep one joint bank account — gives the surviving spouse immediate access to cash for funeral costs and living expenses while probate is underway.
- Keep a sole account below the small-estate threshold where possible — this gives the executor immediate access without probate.
- Make a will — even assets that pass outside probate benefit from a will that covers the rest of your estate. Without a will, the probate assets pass under intestacy rules, which are often not what you intend.
Frequently asked questions
Does jointly owned property always avoid probate?
Only if held as joint tenants. Joint tenants automatically inherit each other's share by survivorship — no probate needed for that transfer. However, if the property is held as tenants in common, each owner's share is part of their estate and does require probate to transfer. You can check how a property is held at the Land Registry (form OC2, £7). Most married couples hold as joint tenants; co-habiting friends or business partners often hold as tenants in common.
Does a pension pay out without probate?
Yes, in almost all cases. Defined contribution pensions (SIPPs, workplace pension pots) are held in discretionary trust by the pension trustees and do not form part of your estate. The trustees pay the death benefit directly to whoever you have nominated on an expression of wishes form — no Grant of Probate is required. Importantly, keeping your expression of wishes form updated is critical: an ex-spouse still named on the form could receive the death benefit even if your will says otherwise.
What is the small estates threshold for banks in the UK?
Each bank sets its own threshold — there is no national standard. Common limits: Barclays £50,000; HSBC £50,000; Lloyds £50,000; NatWest £25,000; Nationwide £30,000. Below the threshold, many banks will release funds to the next of kin (or named beneficiary if there is a will) on production of a death certificate, without requiring a Grant of Probate. Thresholds are per institution, not per estate — if the deceased held £40,000 at two separate banks, each bank may release its own account without probate.
Does life insurance always avoid probate?
Not automatically. A life insurance policy paid to the deceased's estate (the default if no beneficiary is nominated) is subject to probate and IHT. A policy written in trust (typically via the insurer's own trust deed) bypasses probate entirely — the trustees pay the proceeds directly to beneficiaries, usually within days. Writing a policy in trust also removes it from the estate for IHT. Always check whether your policies are written in trust — many are not, especially older policies.
What is a nominated beneficiary account?
Some financial products allow you to nominate a beneficiary to receive the balance on death without probate. Common examples: NS&I premium bonds (up to £5,000 in the 'payment on death' scheme), some ISA accounts (where the provider offers a beneficiary nomination), and credit union accounts. The rules vary significantly by provider. A nomination is separate from your will — the beneficiary receives the funds regardless of what your will says.
Are ISAs subject to probate?
Yes, unless below the bank's small-estate threshold. ISA balances form part of the estate and require probate for amounts above the relevant institution's threshold. However, a surviving spouse can inherit an ISA as an Additional Permitted Subscription (APS) — preserving the tax-free wrapper without needing to close and reopen the ISA. The APS allowance equals the ISA value at death and must be used within 3 years.
Can I structure my estate to avoid probate entirely?
For most people, avoiding probate entirely is impractical — but minimising assets subject to probate is achievable. Strategies: (1) hold property as joint tenants with a spouse; (2) write all life insurance in trust; (3) keep pension expression of wishes forms current; (4) use bare trusts or absolute assignments for specific assets; (5) maintain one bank account below the small-estate threshold for immediate access after death. Each strategy has tax and practical implications — always review the full picture with an estate planning professional.
Cover the assets that do need a will
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Get the will kit →Related guides
- Do you always need probate in the UK?
- Probate fees UK 2026
- Writing life insurance in trust
- Expression of wishes for a pension
- Joint tenants vs tenants in common