Grant of Representation: Do I need a Grant and if so, which Grant do I need?

In the UK, when someone passes away and has assets, you may be wondering how those assets are dealt with and distributed. Grants of Representation provide legal authority to an individual which allows them to deal with the deceased’s assets. 

There are many reasons why a Grant is required. However, there are differences between the types of Grants. The type required depends on whether the individual died with a valid Will. See the main two types of Grants below:

• Grant of Probate – issued to the named Executors of a valid Will.
• Grant Letters of Administration – issued when an individual has died without a valid Will, known as intestate. 

When is a Grant not required?

• Simple estates – if the estate includes cash and personal possessions only, a Grant may not be required. 
• Low value assets – if the deceased’s assets are valued at less than £5,000, a Grant is usually not required to release them. Banks have their own policies about this, and some banks allow the release of assets as high as £50,000 without a Grant. This will depend on the bank and its own policy.
• Jointly owned assets – if the deceased owned property with another person as joint tenants, or owned a bank account in joint names, these assets will automatically pass by survivorship to the other owner. A Grant will not be required. 
• Private pensions with a nomination for a beneficiary – when a deceased had a private pension which they had nominated, then a Grant may not be required. 

When is a Grant necessary?

• Property owned in sole name or as tenants in common – if the deceased owned property in their sole name, or with another person as tenants in common, a Grant will be required to transfer or sell those assets. 
• Assets above the bank threshold of £5,000 – as mentioned above, some banks will release the assets if they do not exceed the value of £50,000. However, this will depend on each bank’s policy, and a Grant may be required for assets valued over £5,000.
• Shares, investments and private pensions – if the deceased had shares, investments and private pensions that have not been nominated, a Grant is required for the release of these assets. 

Another consideration 

Until a Grant is issued, the clock does not start running against anyone who wishes to bring a potential claim under the Inheritance (Provision for Family and Dependants) Act 1975. A claim can only be brought within six months of the date of a Grant of Probate or Letters of Administrations.

If you are dealing with an estate and are unsure whether a Grant is required, we recommend seeking legal advice from a legal professional.