Farra is a death administration assistant for UK families. Get step-by-step guidance for registering a death, applying for probate, notifying banks, and managing bereavement admin. From essential documents to practical checklists, Farra simplifies estate paperwork and funeral-related tasks so you can focus on what matters.
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Not every asset a person owned at death automatically forms part of the "probate estate" — the pool of assets you, as executor, are responsible for collecting and distributing. Some assets bypass probate entirely, passing directly to named beneficiaries or surviving joint owners. Getting this distinction right matters both for completing the Grant of Probate application and for calculating Inheritance Tax accurately — since some assets that bypass probate can still count for IHT purposes. This guide works through every major asset type with a clear explanation of the probate and IHT treatment. For a full overview of the probate process, see our complete UK probate guide.
Before working through each asset type, it is important to understand the distinction between two different concepts:
This distinction matters particularly for jointly owned property, pensions, and life insurance. For context on IHT thresholds, see our guide to inheritance tax basics and our guide to the probate threshold for 2026–27.
These assets are solely owned by the deceased and form part of the probate estate. You need a Grant of Probate (or Letters of Administration) before you can collect or transfer them.
A property registered in the deceased's name alone — or held as tenants in common with another person — requires probate before title can be transferred or the property sold. The value to declare is the open market value at the date of death.
For guidance on obtaining a probate property valuation, see our guide on valuing property for probate.
Any bank or building society account held in the deceased's sole name is part of the probate estate. Most banks will release small balances (typically under £5,000–£50,000 depending on the bank) without probate, but the legal position is that probate is required. Declare the balance at the date of death.
For a guide to collecting bank accounts after probate, see our guide on collecting bank accounts after probate.
Shares, ISAs, investment bonds, unit trusts, and other investments held in the deceased's sole name are probate assets. The value to declare is the "quarter up" value for shares (a specific HMRC calculation method), or the surrender value for investment bonds, at the date of death. For ISAs specifically, the ISA wrapper ceases to apply at death for IHT purposes — the balance counts as part of the IHT estate.
For guidance on share valuations, see our guide to valuing shares for probate.
All personal property — furniture, jewellery, vehicles, artwork, antiques, clothing, and household goods — is part of the probate estate. These must be valued at the date of death. For most everyday possessions, a reasonable written estimate is acceptable to HMRC. For valuable items (jewellery, art), a professional valuation from a specialist auctioneer or valuer is advisable.
For guidance on valuing household contents for probate, see our guide on valuing house contents for probate.
Any debts owed to the deceased at the date of death — for example, an informal loan to a family member, an unpaid salary, or a rental deposit — are assets of the estate and must be declared. The amount declared is the amount owed (at face value, unless there is good reason to believe it is unrecoverable).
A share in a business owned by the deceased — whether as a sole trader, as a partner, or as a shareholder in a private company — generally forms part of the probate estate. The valuation of business interests is complex. Business Property Relief (BPR) may reduce or eliminate the IHT on qualifying business assets, but BPR must be claimed on the IHT400 with supporting evidence. Partnership agreements sometimes include provisions for the partnership interest to pass directly without probate — check the agreement carefully.
These assets pass outside the probate estate — the executor typically has no direct role in their collection or distribution. However, some of them are still counted in the IHT estate.
Joint ownership comes in two forms with very different probate consequences:
For more detail on how joint bank accounts are treated, see our guide on what happens to a joint bank account when one owner dies.
Assets held in a trust during the deceased's lifetime — whether a bare trust, discretionary trust, or life interest trust — generally do not form part of the probate estate, since legal title is held by the trustees rather than the deceased. However, certain trusts (particularly life interest trusts created before 22 March 2006) count as part of the IHT estate.
Most personal pensions, SIPPs, and workplace defined contribution pensions are held in trust by the pension scheme. On the member's death, the trustees pay the death benefit to a nominated beneficiary at their discretion — bypassing the probate estate. Pension death benefits are currently outside the IHT estate, but from April 2027, unused pension pots will be brought into the IHT estate for the first time. See our guide on pensions and inheritance tax from 2027.
See also our guide on whether a pension goes through probate.
A life insurance policy that was written in trust during the policyholder's lifetime pays out directly to the trust beneficiaries on death, bypassing both probate and IHT. A policy not written in trust forms part of the probate estate and the IHT estate. See our guide on life insurance and the estate.
National Savings & Investments (NS&I) has its own rules. For estates up to approximately £5,000 (across all NS&I products), NS&I may release funds without probate using a simple declaration. For larger amounts, NS&I requires the Grant of Probate before releasing the bonds. Premium Bonds cannot be transferred — they must be cashed in. However, Bond prizes continue to be paid for up to 12 months after death, and HMRC requires those prizes to be declared as estate income.
Physical cash — notes and coins — found at the deceased's home or premises is part of the probate estate and must be declared at its face value. The executor should collect and bank this cash into the estate account. For guidance, see our guide on cash found at home after death.
Stocks and shares ISAs and cash ISAs held in the deceased's sole name are part of the probate estate. While the ISA tax wrapper ceases to apply for IHT on the date of death, the surviving spouse or civil partner may be entitled to an "Additional Permitted Subscription" (APS) — a one-off ISA allowance equal to the value of the deceased's ISA — allowing them to maintain the tax-free status of those savings in their own ISA.
Cryptocurrency (Bitcoin, Ethereum, etc.), PayPal balances, online gambling accounts with balances, and other digital assets with monetary value are part of the probate estate. They are often difficult to locate and value, and require careful handling to avoid losing access. See our guide on digital assets after death.
Property and financial assets held abroad may require a separate grant of probate (or its equivalent) in the relevant jurisdiction, as well as being declared in the UK IHT estate. The rules for foreign assets are complex and depend on the nature of the asset, where it is located, and any double tax treaties between the UK and the relevant country. Professional advice is recommended for estates with substantial overseas assets.
Consider the estate of a widow who has died with the following assets:
| Asset | Value | Probate estate? | IHT estate? |
|---|---|---|---|
| Family home (sole ownership) | £350,000 | Yes | Yes |
| Sole bank account | £28,000 | Yes | Yes |
| Cash ISA | £15,000 | Yes | Yes |
| Personal pension (nominated beneficiary) | £80,000 | No | No (until 2027) |
| Life insurance (written in trust) | £100,000 | No | No |
| Premium Bonds | £8,000 | Yes | Yes |
| Household contents | £5,000 | Yes | Yes |
In this example, the probate estate is £406,000 (home + bank + ISA + Premium Bonds + contents). The IHT estate is the same £406,000 — the pension and trust insurance bypass both. With the nil-rate band at £325,000 and the RNRB potentially applicable if the home passes to a direct descendant (up to £175,000), IHT may be nil if the full RNRB is available.
Yes. Even though jointly owned assets (held as joint tenants) pass outside the probate estate, they are still counted in the IHT estate. HMRC form IHT404 is used to declare jointly owned assets on the IHT400. The deceased's share (typically 50%) is included in the IHT calculation.
The ISA remains in place as a "continuing account of a deceased investor" for up to 3 years after death (or until probate is granted and the account is closed, if earlier). It continues to earn interest or investment returns tax-free during this period. The ISA counts in the IHT estate at its date-of-death value, but the surviving spouse can claim an APS to preserve the tax-free benefit.
The threshold above which banks require probate varies by institution (from around £5,000 to £50,000). There is no single legal probate threshold — it depends on the assets involved. For estates where all assets pass by survivorship and no institution requires probate, you may not need a grant at all. See our guide on whether you need probate.
Life insurance payouts are not subject to income tax or capital gains tax. However, if the policy was not written in trust, the payout forms part of the estate and may be subject to IHT. See our guide on life insurance and the estate for probate.
Yes. Cryptocurrency is property and forms part of the estate. The challenge is that accessing and transferring digital assets often requires private keys or passwords that only the deceased held. Planning ahead (leaving access information in a secure location) is the best protection. Without access credentials, cryptocurrency may be permanently inaccessible.
Find out if you need probate in the UK. Property always needs probate. Small estates under £5K-£50K may not (depends on bank). Joint assets exempt.
Life insurance only counts as part of the estate if it is NOT written in trust. How to find out, what executors must do, IHT implications, and how to claim as executor or beneficiary.
Most DC pensions bypass probate entirely — they pass in discretionary trust outside the estate. Find out which pensions are exceptions, what executors must do, and how IHT rules change in April 2027.
Joint accounts pass automatically to the surviving owner by the right of survivorship — no probate needed. Find out what to tell the bank, how long it takes, and the IHT position.
What happens to digital assets after death? Handle social media, email, cloud storage, cryptocurrency, online banking. Complete executor guide.
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