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In January 2022, the probate fees changed. You can find out the relevant fees using our Probate and Estate Administration Costs page.
The planned increase in probate fees, that was due to be introduced next week, has now been scrapped by the government ahead of the election. Jane Cox, Private Client Partner, reviews here why this has happened and what it means for estate planning in the future.
What was the plan for probate fees?
Probate fees are paid at the time of an application for a Grant of Representation, which is needed for beneficiaries to access money from their deceased loved ones bank or building society. This also allows them the ability to sell any properties or other assets left to them. The probate fee is the responsibility of the executor to pay to start the process.
“The current probate fee is £215 for all estates worth over £5,000 if you complete the application yourself,” explains Jane. “This is altered to £155 if a solicitor is used to assist. The new probate fees would have seen this change from this relatively nominal fee to up to £20,000 for an estate worth over £2million.”
The probate fees were due to be staggered as follows:
- For estates worth between £50,000 to £300,000, the charge will be £300
- For estates worth between £300,000 to £500,000, the charge will be £1,000
- For estates worth between £500,000 to £1million, the charge will be £4,000
- For estates worth between £1million to £1.6million, the charge will be £8,000
- For estates worth between £1.6million and £2million, the charge will be £12,000
- For estates worth over £2million, the charge will be £20,000
Delay to probate fee increase
At the time of the announcement of the proposed increase, the Ministry of Justice stated that the new fees were “fair and proportionate”, and were likely to raise around £300million a year towards running the courts and tribunal service. “The plans were approved by the Ministry despite lack of support,” continues Jane. “The main reason for this lack of support is that there is no additional work required if the estate is larger, and so the staggering of the fee depending on the size of an estate is not justified. Families will already be going through an emotional time and so this could have placed families under additional financial strain.”
The Ministry has now stated that, due to the election on 8th June, there is not enough time for the legislation to go through Parliament.
Estate planning and probate fees
“Even though the fees are not set to rise, this does not diminish the importance of proper estate planning, particularly as it has not been made clear as to whether the plans will be picked up again after the election, depending on the successful party,” concludes Jane. “Everyone should make a Will, as dying without one will leave your wishes unheard and your family fighting a battle for what you consider to be rightly theirs. Everyone should also consider making a Trust or lifetime gifts, as these can help secure property and assets and reduce fees as and when they are due.”
If you would like to discuss estate planning such as Wills, Trusts or lifetime gifts, you can contact Jane or the Private Client team on 01329 222075 or email privateclientenquiry@warnergoodman.co.uk.
ENDS
This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice. All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article.