Probate

[Luc]

A married couple, both are in their 80’s, have each made wills leaving their entire estate to each other. Also in the hope of simplifying matters for whoever is the survivor of the two, their home is held as joint tenants and all their assets are in their joint names.

They have assumed that the first to die will be deemed to have left half the value of their combined estate to the survivor. While they are not wealthy the increased value of their home will result in half their estate being worth at least £400,000.

As all they possess is in their joint names can the survivor merely take over the entire estate without the formality of probate, or does the fact that the survivor will inherit at least £400,000 (thereby exceeding the £325,000 IHT exemption) therefore make probate mandatory.

They are aware that there is no IHT between spouses

[Lee Young]

If everything is in joint names then there would be no need for a grant of probate on the death of the first of them.

Contrary to what would appear to be popular belief, a grant of probate is also not required to establish entitlement to the transferable nil rate band on the second death.