A London family’s effort to recover a £1,100 tenancy deposit following the death of an elderly relative has highlighted challenges faced by many in accessing small estates without undergoing the full probate process. The situation underscores ongoing frustrations with probate delays and inconsistencies among organizations in handling bereavement-related accounts.

Julie from Surrey wrote on behalf of her mother, who is 83 and recently lost her sister, an unmarried woman with no children. The aunt, who had rented a flat in London since 2014, passed away without leaving a will or lasting power of attorney. While Julie and her mother were able to settle utility accounts and close bank accounts using the banks’ bereavement services, they encountered difficulty retrieving the tenancy deposit held by the Tenancy Deposit Scheme (TDS).

The TDS initially insisted that a letter of administration, effectively a probate grant for intestate estates, was required before releasing the deposit. Since the aunt’s estate was valued at just over £5,000, the probate fee of £526 would consume nearly half the deposit, leaving a reduced net amount. This bureaucracy placed significant strain on the family, particularly given the mother’s health concerns and the complexity of the probate application.

Probate is typically required to gain legal authority to distribute an estate when someone dies without a will. However, experts note that probate is not always necessary, especially for small estates or when assets are held jointly or in trust. Some financial institutions and service providers release funds with just a death certificate for accounts under certain value thresholds, often up to £50,000. The rules, however, vary widely between organizations, causing confusion and administrative delays for next of kin.

After further discussion with the Tenancy Deposit Scheme, the family was able to provide a death certificate, identification, and a small estate indemnity form—a document promising repayment should another claimant arise. This led the TDS to release the deposit to the mother as the next of kin. A TDS spokesperson expressed condolences to the family and noted that, following a review of the case, the organization is exploring ways to improve support for customers dealing with bereavement.

The story highlights wider problems with the probate system in England and Wales, where delays have increased markedly in recent years. The number of probate applications taking nearly two years to be granted has more than doubled since 2020–21, exacerbating difficulties for families trying to settle estates quickly. While banks and utilities often have bereavement teams that can facilitate refunds or closures, the legal requirements for tenancy deposits and other assets can be more rigid, necessitating complex legal documentation.

For those settling small estates, this case illustrates the importance of checking individual organizations’ policies and potentially negotiating alternatives to full probate where possible. As the probate system faces mounting pressure, the need for clearer guidance and more streamlined processes remains a pressing concern for bereaved families.