Frequently asked questions.

If you die without a valid will in England and Wales, you are said to have died "intestate." Rather than your wishes deciding who inherits your estate, a fixed legal formula called the rules of intestacy takes over. These rules apply regardless of what you would have wanted, and they often produce results people are surprised by.

The rules of intestacy

The intestacy rules follow a strict order of priority. In broad terms, a surviving spouse or civil partner inherits first, up to a statutory legacy, with the remainder (if any) shared with children. If there is no spouse or civil partner, the estate passes to children, then more distant relatives such as parents, siblings, and beyond, in a fixed sequence.

Married couples and civil partners are treated very differently from unmarried couples under these rules, even after decades together.

Who does not automatically inherit

• Unmarried or cohabiting partners, however long the relationship
• Stepchildren who were never legally adopted
• Close friends
• Charities or causes you cared about

If you want any of these people or organisations to benefit from your estate, a will is the only reliable way to make that happen.

What if there is no family at all?

Where no qualifying relative can be traced, the estate passes to the Crown, a process known as bona vacantia. This is uncommon, but it illustrates how far the default rules are from most people's actual wishes.

Why this matters

A will lets you decide who benefits, appoint guardians for young children, and can make administering your estate simpler and less costly for the people you leave behind. Whatever your circumstances, having a will in place is one of the most straightforward ways to protect the people who matter to you.

Many people write, or attempt to write, a will without legal advice. Most of the time nothing goes wrong. But small errors in a will can go unnoticed until it's too late to fix them, and by then it's the people you meant to protect who bear the cost. Here are ten of the most common mistakes we see.

1. Getting the signing formalities wrong

A will must be signed in the presence of two independent witnesses, who must then also sign in your presence. Witnesses cannot be beneficiaries, or married to a beneficiary, or the gift to them can fail entirely.

2. Naming an executor who can't or won't act

Executors can be too elderly by the time they're needed, may predecease you, or may simply not want the responsibility. Naming a backup executor avoids the estate being left without anyone able to act.

3. Vague or ambiguous wording

Phrases like "my jewellery" or "my savings" can mean different things to different people, and ambiguity is one of the most common triggers for disputes between beneficiaries.

4. Forgetting that marriage revokes an earlier will

In England and Wales, getting married automatically revokes any will made before the marriage, unless the will was specifically made in contemplation of that marriage. Many people are unaware their old will has become void.

5. Not planning for inheritance tax

A will drafted without any thought to inheritance tax can leave beneficiaries with a larger bill than necessary, particularly around use of exemptions and the residence nil-rate band.

6. Relying on a DIY will kit for a complex estate

Template wills work reasonably well for very simple situations, but blended families, business assets, property abroad, or vulnerable beneficiaries usually need bespoke drafting to avoid unintended consequences.

A professionally drafted will costs relatively little compared with the value it protects, and it removes most of the risk that these mistakes ever arise in the first place.

A will is not something you write once and forget about. Circumstances change, and a will that no longer reflects your life can fail to do what you intended, or in some cases fail completely.

Life events that should trigger a review

• Getting married or entering a civil partnership
• Divorce or separation
• The birth of a child or grandchild
• The death of a beneficiary or executor
• Buying or selling significant property
• A significant change in the value of your estate
• Moving to live abroad, or acquiring assets overseas

A general rule of thumb

Even without a major life event, it's sensible to review your will every three to five years, just to confirm it still reflects your wishes, your executors are still willing and able to act, and nothing has quietly become out of date.

Marriage and divorce have automatic legal effects

Marriage generally revokes an earlier will. Divorce doesn't revoke a will, but it does treat your former spouse as having died before you for the purposes of any gift or executorship in your will, which can leave gaps you didn't intend.

Keeping a will under regular review is a small task that avoids much larger problems for the people you leave behind.

Probate is the legal process of dealing with someone's estate after they die, confirming who has the authority to collect in their assets, pay any debts and tax, and distribute what remains to the people entitled to it.

Grant of probate vs letters of administration

If the person left a valid will naming an executor, that executor applies for a "grant of probate." If there is no will, or no executor able to act, the person entitled under the intestacy rules applies instead for "letters of administration." Both documents serve the same practical purpose, they're just named differently depending on whether there was a will.

What the grant actually allows you to do

Banks, HM Land Registry, and other institutions generally will not release funds or transfer property to an estate's representative without seeing the grant. It is the official proof of a personal representative's authority to act.

When probate isn't needed

Not every death requires probate. Small estates below certain thresholds, or assets held jointly that pass automatically to a surviving joint owner by survivorship, such as a jointly owned home or joint bank account, often don't need a grant at all.

If you're unsure whether probate is required in a particular case, it's worth checking before assuming either way, since acting without authority when it was needed can create personal liability for the person administering the estate.

There's no single answer to how long probate takes, it depends heavily on the size and complexity of the estate. As a general guide, a straightforward estate might be fully wound up within six to twelve months, while more complex estates can take considerably longer.

What extends the timeline

• Inheritance tax needing to be calculated and paid before the grant is issued
• Property that needs to be sold before funds are available to distribute
• Disputes between beneficiaries, or a challenge to the will
• Assets or beneficiaries located overseas
• Missing or hard-to-trace beneficiaries
• Incomplete paperwork from the deceased's financial affairs

Where the time actually goes

Valuing the estate and preparing the tax position often takes longer than the grant application itself. Once the grant is issued, collecting in assets, settling debts, and finally distributing to beneficiaries each take their own time, particularly if property has to be marketed and sold.

An experienced solicitor can usually give you a realistic estimate early on, once the shape of the estate is known, and can flag anything likely to cause delay before it becomes a problem.

Being asked to act as an executor is often seen as a mark of trust, but it comes with genuine legal responsibilities. Executors are personally accountable for administering the estate correctly, and mistakes can, in some circumstances, expose them to personal liability.

Registering the death and locating the will

The first practical steps are registering the death and locating the original will, which is needed to apply for probate.

Valuing the estate and applying for the grant

Executors must identify and value everything the deceased owned, from property and savings to personal possessions and debts, before applying to the Probate Registry for the grant of probate.

Paying debts and tax before distribution

Outstanding debts, funeral expenses, and any inheritance tax due must be settled before the estate is distributed. Distributing too early, before debts are known, is one of the most common ways executors end up personally liable.

Distributing the estate and keeping records

Once liabilities are cleared, the estate is distributed according to the will, and executors should keep clear estate accounts showing what came in, what went out, and what each beneficiary received.

You don't have to do it alone

Executors are entitled to instruct a solicitor to handle some or all of the administration on their behalf, with the costs paid from the estate. For larger or more complex estates, this is often the safer and less stressful route.

Inheritance tax (IHT) is charged on the value of an estate above certain thresholds when someone dies. It is paid by the estate before assets are distributed, not personally by the beneficiaries, though it naturally reduces what's left for them to inherit.

The nil-rate band

Every estate has a standard nil-rate band, a threshold below which no inheritance tax is due. Anything above it is generally taxed at 40%, unless a relief or exemption applies.

The residence nil-rate band

An additional allowance is available where a home is left to direct descendants, such as children or grandchildren, on top of the standard nil-rate band. This can significantly increase the total amount that can pass free of tax.

Key exemptions

• Gifts to a spouse or civil partner are generally exempt, regardless of value
• Gifts to registered charities are generally exempt
• Certain gifts made during your lifetime may become exempt if you survive long enough after making them

Gifts and the seven-year rule

Gifts made during your lifetime can still be brought back into account for inheritance tax if you die within seven years of making them, on a reducing scale known as taper relief.

Inheritance tax is one of the more complex areas of estate planning, and the reliefs available can change. Getting advice early, ideally while drafting or updating your will, is the best way to make sure your estate isn't paying more tax than it needs to.

A will can be contested in England and Wales, but only on specific legal grounds. Simply disagreeing with how an estate was divided isn't, on its own, enough.

Grounds for challenging validity

• Lack of testamentary capacity: the person didn't understand what they were signing
• Undue influence: the will doesn't reflect the person's true wishes because of pressure from someone else
• Lack of proper execution: the signing formalities weren't followed correctly
• Fraud or forgery

Claims for reasonable financial provision

Separately from challenging the will's validity, certain people, such as a spouse, former spouse, child, or someone who was financially dependent on the deceased, can bring a claim under the Inheritance (Provision for Family and Dependants) Act 1975 if the will, or the intestacy rules, don't make reasonable financial provision for them.

Time limits matter

Claims under the 1975 Act generally must be brought within six months of the grant of probate being issued, so anyone considering a challenge should seek advice promptly rather than waiting.

Contesting a will is a serious step, often emotionally as well as legally, and the right approach depends heavily on the specific facts. Early advice makes a real difference to the outcome.

Couples writing wills at the same time often choose "mirror wills," two nearly identical wills that each leave everything to the other, and then to the same beneficiaries if both have died. They're straightforward, cost-effective, and suit many families well.

How mirror wills work

Each partner has their own separate will, drafted to reflect the same overall wishes. Typically, everything passes to the surviving partner first, and only passes to children or other beneficiaries once both partners have died.

Their main limitation

Because mirror wills are two separate documents, the surviving partner is free to change their own will after the first death, including cutting out beneficiaries the couple had originally agreed on together. For blended families in particular, this is worth thinking through carefully.

When something more structured helps

Where there are children from previous relationships, business assets, or a wish to guarantee that certain beneficiaries eventually inherit regardless of what the survivor later decides, other options such as trust provisions within the will may be more appropriate than a simple mirror will.

A single will, drafted independently, may also suit couples with very different assets, wishes, or family circumstances, rather than trying to fit both into matching documents.

A will and a Lasting Power of Attorney (LPA) are often mentioned in the same breath, but they cover completely different periods of your life, and most people benefit from having both.

A Lasting Power of Attorney works while you're alive

An LPA lets someone you trust make decisions on your behalf if you're ever unable to make them yourself, whether due to illness, an accident, or a decline in mental capacity. There are two types, covering health and welfare, and property and financial affairs.

A will only takes effect after you've died

A will has no legal effect at all while you're alive. It only comes into operation once you have died, and deals purely with how your estate is distributed.

Why most people need both

Without an LPA, your family may need to apply to the Court of Protection to manage your affairs if you lose capacity, a slower and more expensive process than setting up an LPA in advance. Without a will, your estate is distributed under the fixed rules of intestacy rather than according to your own wishes.

Together, an LPA and a will cover both halves of the picture, protecting you while you're alive, and protecting the people you leave behind.

Increasingly, a meaningful part of someone's estate exists only online. Traditional estate planning was built around physical and financial assets, and digital assets don't always fit neatly into it.

What counts as a digital asset

• Cryptocurrency and digital wallets
• Online banking and investment accounts
• Social media and email accounts
• Cloud storage containing photos, documents, or other files
• Loyalty points, air miles, and gift card balances
• Domain names and online businesses

Why access is often the real problem

Even where an executor is legally entitled to a digital asset, actually accessing it can be difficult. Passwords, two-factor authentication, and platform terms of service weren't designed with estate administration in mind, and some providers require a death certificate and grant of probate before they'll even discuss an account.

Practical steps worth taking now

Keeping a private, regularly updated record of your digital accounts (not passwords themselves, which shouldn't be written into a will since it becomes a public document once probate is granted) helps your executors know what exists and where to start. A password manager with clear instructions for your executor to access it, stored securely and separately, is often a practical solution.

As digital assets become a bigger part of everyday life, thinking about them as part of your wider estate planning is becoming just as important as the physical assets you already plan for.

Probate can feel like an unfamiliar process at an already difficult time. Breaking it into its main stages helps make clear what's actually involved, and roughly when.

Step 1: Register the death and locate the will

The death must be registered, usually within five days in England and Wales, and the original will, if there is one, needs to be located to identify the named executor.

Step 2: Value the estate

Every asset and liability needs to be identified and valued, from property and savings to debts and personal possessions, to establish the overall value of the estate.

Step 3: Apply for the grant

With the estate valued, and any inheritance tax due either paid or arranged, the executor applies to the Probate Registry for the grant of probate (or letters of administration if there's no will).

Step 4: Collect in the assets

Once the grant is issued, banks, investment providers, and HM Land Registry will act on it, allowing the executor to close accounts, sell or transfer property, and gather in the estate's assets.

Step 5: Pay debts, expenses, and remaining tax

Outstanding debts, funeral costs, administration expenses, and any final tax liabilities are settled from the estate before anything is distributed to beneficiaries.

Step 6: Distribute and finalise

What remains is distributed according to the will, or the intestacy rules, and the executor prepares final estate accounts showing how everything was handled.

Every estate moves through these stages at its own pace, and having a clear sense of what comes next often makes the process considerably less daunting.

The Skilled Worker visa is the main route for people coming to the UK to work in an eligible occupation for a Home Office licensed sponsor. It replaced the old Tier 2 (General) visa and remains one of the most common routes into UK employment.

Who can apply

To qualify, you generally need a genuine job offer from a UK employer holding a valid sponsor licence, in a role that meets the required skill level, and a salary that meets both the general threshold and the specific threshold for that occupation, known as the "going rate."

Sponsorship

Your employer must issue you a Certificate of Sponsorship, a digital record confirming details of your role, salary, and the sponsor's own compliance with Home Office duties. Without this, an application cannot proceed.

English language requirement

Applicants must demonstrate English language ability to at least B1 level on the Common European Framework, usually through an approved test, a degree taught in English, or nationality from a majority English-speaking country.

How long it lasts, and settlement

Visas are typically granted for up to five years at a time and can be extended. After five continuous years of lawful residence on this route, most applicants become eligible to apply for Indefinite Leave to Remain, and later British citizenship, subject to meeting the relevant requirements.

Rules and salary thresholds under this route are reviewed by the Home Office from time to time, so it is worth confirming current requirements before you apply or sponsor someone.

Before a UK employer can sponsor a Skilled Worker, or workers under most other sponsored visa routes, it needs a valid sponsor licence from the Home Office. Getting a licence involves meeting a set of eligibility and compliance requirements.

Basic eligibility

An applicant business generally needs to be operating genuinely and lawfully in the UK, have no unspent relevant criminal convictions among key personnel, and be able to offer genuine employment matching the skill level required for sponsored roles.

HR systems and record-keeping

Employers need appropriate HR systems in place to track sponsored employees, including monitoring absences and reporting relevant changes to the Home Office within required timeframes.

The application process

Applications are made online, with supporting evidence of the business's genuineness and its ability to meet sponsor duties. The Home Office may carry out a compliance visit before or after granting a licence.

Ongoing duties don't stop at approval

Holding a sponsor licence carries continuing obligations, and non-compliance can lead to a licence being downgraded, suspended, or revoked, which can also affect the status of any workers already sponsored.

Businesses considering sponsorship for the first time are usually well served by getting advice on the application and their ongoing duties together, rather than treating the licence itself as the end of the process.

Indefinite Leave to Remain (ILR) allows someone to live and work in the UK without any time limit and without the immigration conditions that usually apply to visas, such as restrictions on work or recourse to public funds.

Routes to ILR

Most routes to ILR require a set period of continuous lawful residence in the UK, commonly five years, though this varies depending on the specific visa route, such as Skilled Worker, spouse or partner routes, or others.

Continuous residence and absences

Applicants generally need to show they haven't spent excessive time outside the UK during the qualifying period, as absences beyond permitted limits can reset or affect eligibility.

The Life in the UK test and English requirement

Most ILR applications also require passing the Life in the UK test and demonstrating English language ability, unless an exemption applies.

ILR is not the same as citizenship

ILR gives permanent residence rights, but it isn't the same as being a British citizen. It doesn't come with a British passport or the right to vote in general elections, and it can, in limited circumstances, be lost through extended absence from the UK. Many people apply for citizenship after holding ILR for a period.

For most adults who weren't born British, becoming a British citizen happens through a process called naturalisation, applied for once certain residence and other requirements are met.

Eligibility

Applicants generally need to have held Indefinite Leave to Remain (or equivalent settled status) for at least twelve months, and to meet residence requirements, though those married to a British citizen may be eligible sooner.

The good character requirement

Applicants must satisfy the Home Office that they are of good character, which considers matters such as criminal convictions, immigration history, and financial conduct.

Life in the UK test and English language

Most applicants need to pass the Life in the UK test and evidence English language ability, unless they qualify for an exemption, for example on age or health grounds.

The citizenship ceremony

Successful adult applicants are invited to attend a citizenship ceremony, where they take an oath or affirmation of allegiance, after which they receive their certificate of citizenship and can go on to apply for a British passport.

Family visas allow qualifying relatives of someone settled in, or living lawfully in, the UK to join them. The requirements are detailed, and small gaps in evidence are one of the most common reasons applications fail.

Qualifying relationships

Family visas generally cover spouses, civil partners, unmarried partners in a genuine relationship akin to marriage, and in some circumstances children or other dependent relatives.

The financial requirement

Sponsors typically need to meet a minimum income threshold, or show sufficient savings, to demonstrate the couple or family can support themselves without relying on public funds.

The accommodation requirement

Applicants must show they'll have adequate accommodation available in the UK, without overcrowding, and without breaching any relevant housing laws.

Building the application

A strong application draws together relationship evidence, financial evidence, and accommodation evidence into a coherent, well-organised package, since Home Office caseworkers assess strictly against the published requirements.

Spouse visa applications are document-heavy, and missing or weak evidence is one of the most common reasons for refusal. This checklist covers the main categories most applicants need to address.

Relationship evidence

• Marriage or civil partnership certificate
• Evidence of a genuine, ongoing relationship (photos, communication records, joint travel)
• Evidence of cohabitation where applicable, such as joint tenancy or utility bills

Financial evidence

• Payslips and employment contracts, or self-employment accounts
• Bank statements corresponding to the relevant period
• Evidence of savings, if relying on this to meet the requirement

Other supporting documents

• Evidence of English language ability, unless exempt
• Evidence of accommodation in the UK
• Valid passports and any relevant immigration history

Every case is different, and the exact combination of evidence needed depends on individual circumstances, so this checklist is a starting point rather than a complete list for every application.

A visitor visa refusal can be disappointing, particularly if travel plans were already in motion, but it isn't necessarily the end of the road. Understanding why the application was refused is the first step to deciding what to do next.

Read the refusal letter carefully

The refusal letter sets out the specific reasons a caseworker wasn't satisfied, whether that's around finances, ties to your home country, or the credibility of your travel plans. Any next step should directly address these points.

Reapplying

For most visitor visa refusals, reapplying with stronger, clearer evidence addressing the specific concerns raised is the most common route forward, rather than resubmitting the same application again.

Administrative review

In limited circumstances, an administrative review may be available if you believe the decision involved a case-working error, though this isn't a general right of appeal for most visitor visa refusals.

Common refusal reasons

Frequent issues include insufficient evidence of ties to your home country, unclear or inconsistent travel purpose, and financial evidence that doesn't clearly support the proposed trip.

Taking time to build a clearer application the second time around, rather than reacting quickly, generally gives the best chance of success.

The Graduate visa lets eligible international students remain in the UK to work, or look for work, after completing their studies, without needing a job offer or a sponsor.

Eligibility

Applicants generally need to have successfully completed an eligible course at a UK higher education provider with a track record of compliance, while holding a Student visa at the time of application.

How long it lasts

The Graduate visa is typically granted for two years, or three years for those who completed a PhD or other eligible doctoral qualification.

Work flexibility

Unlike the Skilled Worker route, the Graduate visa doesn't require sponsorship or tie you to a specific employer or role, giving genuine flexibility to work, or start a business, while you're on it.

What comes after

Many graduates use this period to secure a role with an employer willing to sponsor them under the Skilled Worker route, allowing them to switch onto a longer-term visa before the Graduate visa expires.

Not every Home Office refusal comes with a right of appeal, some carry only a right to administrative review, so understanding which applies to your decision is the essential first step.

When you have a right of appeal

Rights of appeal are generally more limited than they once were, and tend to arise in specific categories, such as certain human rights or protection claims, rather than most standard visa refusals.

The First-tier Tribunal process

Where a right of appeal exists, the case is heard by the First-tier Tribunal (Immigration and Asylum Chamber), an independent judicial body separate from the Home Office, which considers the evidence afresh.

Grounds of appeal

Appeals are generally argued on the basis that the decision was wrong in law, or that it's incompatible with the UK's human rights obligations, depending on the type of case.

Onward appeals

If an appeal is unsuccessful, there may be a further right to appeal to the Upper Tribunal, but only on a point of law, and permission is required.

Appeal deadlines are strict, and missing one can end your case regardless of its merits, so acting quickly on receiving a refusal is essential.

UK employers are legally required to check that every employee has the right to work in the UK before employment starts, regardless of nationality. Getting this wrong can result in a significant civil penalty.

When the check must happen

The check must be carried out before employment begins, not after, and a follow-up check is needed for employees with time-limited permission before their current permission expires.

How checks can be carried out

Employers can carry out a manual document check, use the Home Office's online right to work checking service, where the individual has a share code, or use an approved Identity Service Provider for digital identity checks for British and Irish citizens with a valid passport.

Establishing a statutory excuse

Carrying out the check correctly, and keeping evidence of it, establishes what's known as a statutory excuse, protecting the employer even if it later turns out the individual didn't actually have the right to work.

The cost of getting it wrong

Employers who knowingly employ someone without the right to work, or who fail to carry out compliant checks, can face substantial civil penalties per illegal worker, alongside reputational and, in serious cases, criminal consequences.

Building right to work checks into a standard, well-documented onboarding process is the most reliable way for employers to stay compliant.

Anti-Money Laundering, or AML, refers to the laws and procedures designed to prevent criminal proceeds being disguised as legitimate money. Solicitors sit at a point in the system where large sums of money regularly change hands legally, which is exactly why the profession is closely regulated for this purpose.

Why solicitors are regulated for this

Legal services, particularly conveyancing, are recognised internationally as an area criminals sometimes try to exploit to give illegitimate money a legitimate appearance. Because of this, solicitors are legally classed as "relevant persons" under AML law, with binding obligations to check who they're acting for and where money is coming from.

The legal framework

In the UK, these obligations sit mainly within the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, and are supervised for solicitors by the Solicitors Regulation Authority (SRA), alongside the profession's own anti-money laundering guidance.

What it means for clients in practice

In practice, this means every client is asked for proof of identity, and, depending on the matter, evidence of where relevant funds have come from. These checks apply consistently to everyone, not selectively, and are a legal requirement rather than a judgement about any individual client.

Understanding that AML checks are a standard, universal part of instructing a solicitor, rather than something specific to your situation, generally makes the process feel a lot less personal, because it isn't.

Asking every new client for proof of identity, even people the firm has known for years, can feel unnecessary. In fact, it's a strict legal requirement solicitors cannot waive, however well they know you.

It's a legal requirement, not a preference

Under the Money Laundering Regulations, solicitors must verify the identity of every client before, or very early in, acting for them. This applies regardless of the type of matter, and regardless of how the firm came to be instructed.

What documents are typically accepted

Common acceptable documents include a valid passport or driving licence for identity, and a recent utility bill, council tax bill, or bank statement for proof of address, though exact requirements can vary by firm and by matter.

Why it happens at the start, every time

Checks are carried out at the outset of every matter, and sometimes need repeating, because the requirement relates to the specific matter being handled, not to the client as a person in general.

Having your ID ready before your first appointment is usually the simplest way to avoid any delay to the start of your matter.

Customer Due Diligence, or CDD, is the standard set of checks solicitors must carry out on every client before acting for them. It's the baseline requirement underneath the wider AML framework.

The three core elements

• Verifying who the client actually is, using reliable, independent documents or electronic verification
• Understanding ownership and control, for companies, trusts, or other organisations, identifying the individuals who ultimately own or control them
• Understanding the purpose and intended nature of the relationship, essentially, what the matter is actually about

When CDD must be repeated

CDD isn't necessarily a one-off exercise. It may need to be refreshed if a matter changes significantly, if documents expire, or if a firm's ongoing monitoring flags something that needs a fresh look.

Because CDD is a legal minimum standard, it applies whether a client is a long-standing individual, a new company, or anyone in between, there's no lower-risk category that's exempt from it entirely.

Enhanced Due Diligence, or EDD, is a deeper level of AML checks required in situations that are considered inherently higher risk, on top of the standard Customer Due Diligence carried out for every client.

Common triggers for EDD

• The client, or someone closely connected to them, is a Politically Exposed Person (PEP)
• The transaction involves a high-risk third country
• The matter involves an unusually complex or unusually large transaction with no clear economic purpose
• The client operates in a cash-intensive business

What EDD typically involves

This can include obtaining further evidence of source of funds and source of wealth, senior management approval to act, and more frequent ongoing monitoring of the relationship for the duration of the matter.

Being asked for enhanced checks doesn't imply wrongdoing, it simply reflects that certain categories of client or transaction carry statistically higher risk, and the regulations require that risk to be managed more closely, in every such case, without exception.

"Source of funds" and "source of wealth" sound similar, and are often confused, but they answer two different questions as part of a solicitor's AML checks.

Source of funds

Source of funds is about the specific money being used for a particular transaction, for example, the deposit for a house purchase. Evidence might include a recent bank statement showing the money and its origin, such as salary payments or the proceeds of a previous property sale.

Source of wealth

Source of wealth is broader. It's about how a client built up their overall financial position over time, not just where this particular payment came from. This tends to be relevant in higher-risk cases, such as where Enhanced Due Diligence applies.

Why both matter

A client might have a clean, easily evidenced source of funds for a transaction, while broader source of wealth questions still arise if, for example, the overall pattern of their financial activity doesn't sit comfortably with their stated occupation or background.

Understanding the distinction helps make sense of why a solicitor might ask more detailed questions in some cases than others, it depends on the risk profile of the specific matter.

Having the right documents ready before your first appointment is the easiest way to avoid delay at the start of a matter. While exact requirements can vary slightly by firm, the following are commonly accepted.

Proof of identity

• A valid passport
• A valid UK or EU photocard driving licence
• A national identity card, where applicable

Proof of address

• A utility bill dated within the last three months
• A recent council tax bill
• A recent bank or building society statement
• A current UK driving licence, if not already used for identity

Digital identity verification

Many firms now also offer, or require, digital identity verification, using secure software to check a document against a live photo, which can be quicker than posting or bringing in physical documents.

If you're not sure exactly what's needed for your specific matter, it's always worth asking in advance, since requirements can differ slightly depending on whether you're an individual, a company, or acting on behalf of someone else.

Property transactions receive particularly close attention under anti-money laundering law, and it's not because buyers or sellers are viewed with suspicion, it's because of what property represents as an asset class.

Why property attracts scrutiny

Property is high in value, relatively stable, and can be bought and later sold to convert illegitimate funds into an apparently legitimate asset. This makes it a recognised area of higher risk under UK and international AML frameworks, regardless of any individual transaction's actual circumstances.

What buyers should expect

Every buyer, without exception, should expect to provide proof of identity and evidence of the source of their deposit and purchase funds, whether that's savings, a mortgage, the sale of another property, or a gift.

Sellers face checks too

It isn't only buyers who are checked. Sellers are also subject to identity verification, and in some circumstances questions about the destination of sale proceeds.

These checks are simply a standard part of every property transaction today, and providing clear documentation early on is the best way to keep things moving smoothly.

Gifted deposits are common, particularly for first-time buyers receiving help from family, but they bring their own set of AML requirements, involving both the buyer and the person making the gift.

A gift letter

Lenders and solicitors typically require a signed letter from the donor confirming the money is a genuine gift, with no expectation of repayment, and no resulting interest or stake in the property.

The donor's own source of funds

It isn't enough to confirm the money is a gift, the donor generally also needs to evidence where that money came from, such as savings, salary, or the sale of an asset, using the same kind of documentation a buyer would provide for their own funds.

The donor's identity

Depending on the size of the gift and the lender's requirements, the donor may also need to provide proof of identity, similar to the checks carried out on the buyer.

Gathering this information early, ideally as soon as a gifted deposit is agreed within the family, avoids it becoming a late-stage hold-up close to exchange.

Buying a UK property with funds from overseas is entirely normal, but it does bring additional AML checks compared with funds that have always been in the UK.

Evidencing the transfer

Solicitors will typically want to see evidence of the international transfer itself, including the sending bank, the amount, and confirmation the funds have cleared into a UK account before completion.

Evidencing the original source

Beyond the transfer itself, evidence is usually needed of how the funds were originally generated overseas, such as foreign payslips, business records, or the sale of an overseas property, sometimes with certified translations where documents aren't in English.

Correspondent banking and international standards

International transfers pass through correspondent banking relationships with their own compliance checks, which is part of why these transactions can sometimes take a little longer to clear than a purely domestic transfer.

Starting the transfer process, and gathering supporting documentation, well ahead of your intended completion date is the best way to avoid last-minute delays with overseas funds.

It's a common assumption that a "cash" purchase, meaning a purchase without a mortgage, involves less paperwork. In terms of AML checks, it's often the opposite.

Why cash buyers face closer scrutiny

With a mortgage purchase, the lender has already carried out its own checks on a significant portion of the funds. With a cash purchase, the solicitor is often the only party verifying the entire purchase price, which means the full source of funds evidence falls to them alone.

Evidencing the full purchase price

Cash buyers should expect to provide comprehensive evidence covering the whole of the purchase price, not just a deposit, tracing the funds back to a clear, legitimate origin.

Large cash payment restrictions

Separately from AML source of funds checks, there are also legal and practical restrictions on paying large sums in physical cash for a property purchase, and most transactions proceed by bank transfer rather than literal cash.

Buyers proceeding without a mortgage should expect the source of funds process to be more thorough, not less, and preparing documentation early helps avoid it becoming a bottleneck.

Solicitors are trained to recognise certain patterns that, under AML regulations, require closer examination before a property transaction can proceed. None of these automatically mean something is wrong, but each requires a clear, satisfactory explanation.

Common red flags

• Payment coming from someone who isn't a party to the transaction, with no clear explanation
• Reluctance or difficulty providing basic identity or funds information
• Unusual urgency to complete, disproportionate to the circumstances
• A purchase price significantly out of line with the property's apparent market value
• Complex layers of corporate or trust ownership with no clear commercial rationale
• Involvement of a Politically Exposed Person, requiring enhanced checks

What happens when a red flag is identified

A red flag typically leads to further questions and, where appropriate, Enhanced Due Diligence, rather than an automatic refusal to act. Most red flags have a straightforward, legitimate explanation once explored.

Understanding that these checks exist to catch a small minority of genuinely problematic transactions, not to inconvenience the vast majority of legitimate buyers and sellers, helps explain why solicitors take them seriously on every file.

Every buyer instructing a conveyancing solicitor will be asked, at some point, to explain and evidence where their money is coming from. It's one of the most consistent questions across every property transaction, and there's a clear reason for it.

Property is a recognised money laundering risk

Because property holds and can grow in value, and ownership can later be sold on, it's recognised by regulators as an asset class that can be used to disguise the origin of illegitimate funds. Conveyancing solicitors are required by law to guard against this, on every transaction.

It's a universal requirement, not a targeted one

This question is asked of every buyer, on every purchase above the relevant thresholds, regardless of how the funds are being provided or how well the solicitor already knows the client.

Good evidence keeps things moving

Bank statements, payslips, a completion statement from a previous sale, or a gift letter and the donor's own evidence are the most common ways of satisfying this requirement, and having them ready before they're asked for is the easiest way to avoid delay.

Ultimately, this question exists to protect the integrity of the property market as a whole, and being asked it is simply part of buying property in the UK today.