Probate and IHT Overview

Key facts

A grant of probate (or letters of administration) gives legal authority to deal with the deceased’s assets.
IHT must normally be paid before the grant of probate is issued — creating a cash-flow challenge for executors.
Executors can use the Direct Payment Scheme to pay IHT from the deceased’s bank accounts before probate.
For excepted estates, no IHT400 form is needed — IHT information is included in the probate application.
The probate process typically takes 3–12 months depending on the complexity of the estate.

What Is Probate?

Probate is the legal process through which a deceased person’s will is validated by the court, and the named executors are authorised to deal with the estate. If there is no will, the court issues letters of administration instead, and the process is often called “obtaining a grant of administration.”^[1]

The grant of probate (or letters of administration) is collectively known as a grant of representation. It gives the personal representatives (PRs) the legal authority to collect assets, pay debts, settle IHT, and distribute the estate to beneficiaries.

The Link Between IHT and Probate

IHT and probate are closely intertwined because HMRC requires that IHT is either paid or confirmed as not due before the grant of probate is issued:^[2]

For estates where IHT is due: the IHT400 form must be submitted and the tax (or at least the initial payment) must be made before the probate application can proceed
For excepted estates: IHT details are included in the probate application itself — no separate IHT400 is needed
The probate registry will not issue the grant until HMRC has confirmed receipt of the IHT account (or confirmed the estate qualifies as excepted)

The cash-flow challenge: Executors must pay IHT before probate is granted, but they cannot access the deceased’s assets until they have probate. The Direct Payment Scheme solves this by allowing banks to transfer funds directly to HMRC from the deceased’s accounts.^[3]

The Probate Process Step by Step

Step	Action	Typical Timeframe
1	Register the death and obtain the death certificate	Within 5 days
2	Identify and value all estate assets and liabilities	2–8 weeks
3	Complete IHT forms (IHT400 or excepted estate declaration)	1–4 weeks
4	Pay any IHT due (using Direct Payment Scheme if needed)	Before probate application
5	Submit probate application to the Probate Registry	After IHT is settled
6	Grant of probate issued	4–8 weeks after application
7	Collect assets, pay debts, distribute estate	2–6 months

The Direct Payment Scheme

The Direct Payment Scheme (also known as the “Bereavement Payment Scheme”) allows executors to arrange for banks and building societies to transfer money directly from the deceased’s accounts to HMRC to pay IHT:^[3]

Most major banks participate in the scheme
The executor requests the bank to make a payment using reference numbers from HMRC
The bank transfers the funds directly to HMRC — the executor does not need to access the account
NS&I (National Savings & Investments) also participates for Premium Bonds and savings certificates

When Probate May Not Be Needed

Probate is not always required. Common situations where it may be unnecessary include:

The estate consists only of jointly owned assets that pass by survivorship
Assets are below the threshold set by individual banks (typically £5,000–£50,000)
All assets are held in trust and do not form part of the estate
The estate is very small with no property

Important: Even if probate is not needed, you may still need to report the estate to HMRC for IHT purposes. The IHT reporting obligation is separate from the probate requirement.

Executor Responsibilities

Personal representatives are legally responsible for:

Valuing the estate accurately for IHT
Completing the appropriate HMRC forms
Paying any IHT due within 6 months of the end of the month of death
Applying for probate
Distributing the estate according to the will (or intestacy rules)
Keeping proper accounts of the estate administration

Frequently Asked Questions

What is probate?

Probate is the legal process of proving a will is valid and authorising the executors to deal with the deceased’s estate. If there is no will, the equivalent process produces “letters of administration” and the administrators are determined by intestacy rules. Both are collectively called a “grant of representation.”

Do I always need probate?

Not always. Probate may not be needed if the estate is very small, all assets were jointly owned and pass by survivorship, or all assets are held in trust. However, most banks and institutions require a grant of probate for assets above a certain value (typically £5,000–£50,000).

How do I pay IHT before I have access to the estate?

HMRC’s Direct Payment Scheme allows executors to arrange for banks and building societies to transfer funds directly from the deceased’s accounts to HMRC to pay the IHT. This solves the “chicken and egg” problem of needing to pay IHT before receiving probate.

How long does probate take?

A straightforward estate may take 3–6 months. Complex estates with IHT, multiple properties, or disputes can take 12 months or longer. The grant itself is usually issued within 4–8 weeks of submitting the application, but collecting and distributing assets takes additional time.

Sources

Applying for probate — GOV.UK
How Inheritance Tax works: thresholds, rules and allowances — GOV.UK
Pay Inheritance Tax from the deceased’s bank account — GOV.UK