Release of funds without probate is reaching ‘alarming levels’, experts warn

Legal experts are calling for a cap on the amount of money that can be released without a grant of probate in place as well as greater education on the topic as individual funds released to families tops £175 000.

Since lockdown there has been an increase in banks and other financial institutions issuing huge sums to family members without the need to see a grant of probate.

Specialists at Irwin Mitchell warn this may be a problem in two ways. First beneficiaries who are entitled to receive the estate funds may be missing out on bequests left to them if funds are paid to the wrong person. Second recipients may not be aware of the inheritance tax implications.

Gillian Coverley a tax trusts and estates partner at the firm said: ‘There’s been an increase over recent years in releasing funds without a grant...