Are you aware of the changes to Probate Court fees?
Are you aware of the changes to the Probate Court fees? Have you planned for the increase in these fees?
Are your executors aware that they will need to find the funds to pay the Court fees (widely heralded as yet another death tax) before they have access to your assets?
The changes in Court fees, which are still subject to Parliamentary approval, will result in an exponential hike in the Court fees with effect from May 2017 – that is just a few short weeks away.
What exactly is changing?
Under the current rules, there is a one-off fixed court fee of £215 for an individual to apply for a Grant, or £155 if your solicitor makes the application for you.
The new charges are on a sliding scale, according to the value of the net estate and are as follows:
|Value of estate||Proposed fee
|Up to £50,000||£0
|Between £50,000 – £300,000||£300
|Between £300,000 – £500,000||£1,000
|Between £500,000 – £1m||£4,000
|Between £1m – £1.6m||£8,000
|Between £1.6m – £2m||£12,000
|More than £2m||£20,000
The good news is that estates with a value of £50,000 or less will benefit from these changes, as no fee will be payable. Under the current rules, the lower limit is a mere £5,000.
However, those with estates over £50,000 will be liable to significant increases in the fee payable. By way of an example, a person with a modest estate of £600,000 would be subject to a fee of £4,000 – that is more than 25 times the current fees payable if the application was made through a solicitor.
How our Estate Administration experts at Bennett Griffin can help you
We still have a few weeks before the new fees are scheduled to be introduced. Our Estate Administration experts at Bennett Griffin can assist you in making the application or the Grant under the old rules, thus saving the estate many hundreds, if not thousands of pounds.
We are happy to help with all aspects of the administration of the estate of a loved one and are always on hand to answer any queries.
Please do not hesitate to contact one of our fantastic team:-
The information contained in this article is for general guidance only and is not intended to be legal advice. Professional advice should always be taken on the application of the law in any particular situation.