Does anyone know about probate?

[TeamsInterview]

My lovely dad passed away 2 weeks ago, everything has been transferred to my mum's name with no problem but the building society has said we have to go through probate.
I thought that was only if you don't have a will.
Can anyone educate me please?

@DixonD thank you, I don't understand the point of a will , which they have , if you still need to get permission to transfer assets.

Tenants in common is less usual than joint tenants for a married couple. They are two different things. Your parents would have had to give specific instructions to buy the house as tenants in common. It means the owners own their shares separately and it doesn't automatically go to the survivor. Useful for people who were married before and want to leave their share to children of the first marriage.

I think it is to make sure Inheritance Tax is paid, but I am a huge cynic.

My Mum, left everything to me and I am the only Executor but I still needed Probate.

I’m so glad to hear that. Hope you can grieve in peace now knowing it is all sorted out.

That's a different set up from leaving everything to a spouse, though, as no inheritance tax would be payable at all in those circumstances. And if all the accounts are joint and the house was in joint names and owned as joint tenants, there would be no need of probate at all, as far as I understand it (I am not a lawyer, though).

The TIC ownership has probably complicated matters as the deceased’s share usually gets willed to a beneficiary who is not their spouse or for the spouse to only have a lifetime interest.
Joint ownship between spouses doesn’t generally need probate but other assets in the estate might need it if they were owned by the Testator alone.
A Child / other beneficiary inheriting a house or assets over a certain amount is going to need probate, nothing to do with IHT, as most estates are nowhere near the threshold.

I wish tenants in common and joint tenants weren't such similar phrases. I think many people don't understand that they are different things. I personally doubt that the OP's parents were tenants in common, in the legal sense.

I’m sorry the building society gave you incorrect advice. Joint accounts do not require probate if the surviving partner is on the account. Very distressing when you’ve just lost someone.

That’s exactly what it’s for.

So sorry @TeamsInterview, you’re absolutely right. Coping with all the bureaucracy at a time when you’re least equipped to deal with it makes everything so much harder.

If it was for the purpose of IHT, then the limit for probate would be the same as the threshold for IHT - £325k.
The fact that you may need probate for as little as £5k says otherwise.
IHT needs paying before Probate is granted.

The limit for probate is different in every financial institution. Barclays is, from memory, £30k. Premium Bonds is £1.

If pretty sure they set ownership of the house as tenants in common to protect their half of the house in case anything needed means testing

I stand corrected! No idea about the procedures there. In that case you might need to go back to a solicitor to sort out the ownership.

My mum,in her younger days, was meticulous with paperwork and getting everything in order, they have a very comprehensive will , which states that everything is left to the surviving spouse and on their death to me and my sister. Seems like a waste of time doing the will 🤷‍♀️

If you don't do a will, after a certain amount it doesn't all get left to the spouse but half goes to the children because of intestacy rules. Amount is about £300k, not sure of exact amount, so not huge amount if house is worth a lot.

Another reason for making a will is so you can say what would happen to your estate in the event that you outlive not just your spouse but also your children. The intestacy rules would mean that the next in line would be the deceased's grandchildren, which is what most of us would want, but if there were no grandchildren, then the order is deceased's parents, then deceased's siblings, then the children of the siblings, and so on. Many people in those circumstances might think they would like to leave a more substantial sum to charity if their siblings, nieces and nephews are all doing OK, or if they're not close. My will does.

Without a will, a spouse inherits the first £270k and half of everything above.
Obviously, if a house is Jointly owned, it simply passes to the other owner outwith the Estate - you just need to send the Death certificate to the Land registry and they update the deeds.

Although adult children in this situation can waive their rights and ensure the whole estate goes to the surviving spouse (in England and Wales - not sure about the rest of the UK).

But better to have a will in place.