Both are types of Grant of Representation. Both give the named person legal authority to deal with the estate of someone who has died. The core difference is simply whether or not the deceased left a valid Will.

Grant of Probate

Issued when the deceased left a valid Will with a named executor willing and able to act. The application uses form PA1P. The executor distributes the estate in accordance with the Will.

Letters of Administration

Issued when there is no valid Will, or when a Will exists but no executor can act. The application uses form PA1A. A qualifying relative (the administrator) manages the estate, distributing it according to the Rules of Intestacy.

Are they treated differently by banks and institutions?

No. Banks, financial institutions, and the Land Registry accept both documents equally. What matters is that it is an original or sealed official copy (£2 each) issued by the Probate Registry. YouCanDoProbate supports both. The platform determines which forms apply and completes them automatically.