In an attempt to raise an additional £250m a year, the Government are planning to huge rises in Probate fees.
They are replacing the current fees with a new tiered system. This could result in paying as much as £20,000 for estates worth more than £2m. The new fees are planned as follows for estates worth between:
- £500,000 – £1m = £4000
- £1m – £1.6m = £8000
- £1.6m – £2m = £12000
Due to the rise in property values across the UK over the recent years, this could result in families paying huge charges after the loss of a loved more.
When someone passes away, you will need to obtain a grant of probate in order to deal with property, money and possessions. Although not all deaths need a grant of probate, statics show around half of UK deaths do lead to obtaining a grant of probate. In order to obtain this, you would need to be named as an executor of a Will.
The changes will mean that properties worth less than £50,000 would incur no fees, but an increase of around £85 to £300 to a further 27%. The Government have suggested the reason for this change in fees is to try and reduce the cost of running courts and tribunals to the UK taxpayer.
The maximum fee of £20,000 would “only be paid by the wealthiest estates” to cover the unpopular court fees, this statement made by Justice Minister Shailesh Vara. He also said 84% of estates would incur fees of £300 or even not having to pay a fee at all and 94% would only be paying £1000 or less.
Vara also said these fees are necessary to helping reduce the deficit and contributing towards to court and tribunal services. He also wanted people to recognise that some estates will not be having to pay any fees at all.
The proposed new Probate fees, these are before Inheritance tax:-
- £300 for estates worth more than £50,000 and up to £300,000
- £1,000 for estates worth more than £300,000 and up to £500,000
- £4,000 for estates worth more than £500,000 and up to £1m
- £8,000 for estates worth more than £1m and up to £1.6m
- £12,000 for estates worth more than £1.6m and up to £2m
- £20,000 for estates worth more than £2m
How can MJR Solicitors help?
We offer initial appointments. We can fully advise of your options at the outset and where possible ensure you are paying the correct fees. For more information please contact us on:-
Telephone – 01243 945054 / 07881104008
We are experienced professionals here to help.
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