Probate

[Magissa]

My father died in April. His homemade will which was written several years ago left everything to me, his only daughter. I am also executor of the will. His small flat is the main asset and that needs to be sold to pay his carehome fees ( 85k, I have a deferred payment agreement with the council). There was approx 12k in his bank account. For many years he had paid £12 a month into a policy that on his death paid out £1500. He actually paid over £3000 into it! I am trying to do the financial assessment of assets so that I can apply for probate. Two questions. 1) Is that £1500 part of his assets or, as he thought, it is left directly to me? I have already received that plus his bank have already transferred his money to me which even though I am his beneficiary I am afraid to touch until probate. My thoughts were until I am actually officially given probate I shouldn't use it...is that correct?

First thing to find out is whether the policy that paid out on his life was written in trust. The provider will know whether it was in trust

If so, it is outside the estate and you can use it before obtaining probate. Indeed, these 'life policies' are sold as a way to pay for the funeral expenses and any IHT which needs to be paid before you can get probate.

If it was not written in trust, then it forms part of the estate and should not be distributed until after probate. It is still reasonable for you to use it for any estate expenses ahead of probate.

Having reread your post, I would question whether you really need to apply for probate. If the life policy is written into trust and the value of the house is due to the council, you may be under that value required for probate.

https://www.gov.uk/applying-for-probate

The fact that the bank has already paid out to you is a sign that they done expect probate to be required. At that level of assets, and with no other potential beneficiaries it's worth checking whether you even need probate. I would contact them online, I have found them to be very helpful and understanding.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/probate-general-enquiries

All the best.

under that value required for probate.

Once funeral expenses are taken into account.

under that value required for probate

There is no set value below which probate is not required. As the OP needs to sell her father's flat, she will need probate. Without it she does not have the legal authority to sell the flat.

My thoughts were until I am actually officially given probate I shouldn't use it...is that correct

You don't need to wait for probate before using the money that has been transferred to you. You can use it to pay funeral expenses and any other debts of the estate. Once those have been paid anything left over is yours to use however you want.

Not answering your question but my DF also had a policy that paid out £1,000 that my GM started for him, and he's paid in many times that but he didn't want to stop it because it was from his DM, it's madness and arguably exploitative of the company.