08 April 2019
Services:
Personal Tax Planning
The Government’s plan to increase probate fees has been put on hold following ‘pressure on Parliamentary time’ caused by ongoing Brexit negotiations.
Originally, probate fees were set to soar from 1st April with fees being calculated within banded thresholds depending on the value of the estate.
The Government has confirmed it will be delayed for a minimum of three weeks, but so far, no date has been set, as the necessary enabling legislation has not yet been passed. Once the Fee Order has been passed, the new structure will come into force 21 days later.
The current structure incurs a flat fee of £215 on estates over £5,000. Under the new fee structure, estates worth up to £50,000 will pay nothing. However, the highest valued estates – those over £2 million - could see an increase of over 3,771%.
We would recommend that probate applications be made as soon as possible to ensure that you are able to benefit from the current fee structure, which is likely to be lower.
The Probate Registry is currently experiencing a high volume of applications – approximately 50% greater than usual - and the waiting time for grants of representative are slightly longer than usual.
How much are probate fees set to rise?
This will depend on estate value. Currently, the plans are:
- Up to £50,000: Nothing (a saving of £215)
- £50,000 – £300,000: £250
- £300,000 – £500,000: £750
- £500,000 – £1 million: £2,500
- £1 million – £1.6 million: £4,000
- £1.6 million – £2 million: £5,000
- £2 million or more: £6,000
What is probate?
Probate refers to the legal and financial processes involved in dealing with the property, money and possessions (also called the assets) of someone who has died.
How can Haines Watts help?
We understand it can be incredibly difficult and stressful to have to deal with probate on top of the emotional circumstances of a loved one passing away. We can be by your side to take care of the longwinded process, from collecting assets to organising debt payments, and being able to liaise directly with HMRC to save your time.
