The return of the Probate fee rise
In February 2017, you might remember that the Government planned to introduce a rise in the probate fee that is payable upon an application for a Grant of Probate. This was dropped when the general election was announced in May 2017.
This week, the Government has reintroduced the rise. The current fee payable on an application for probate for any estate is £155 (if applying through a solicitor) or £215 (if applying in person).
It is expected that the new probate fee will be dependant upon the size of the estate. Those valued at less than £50,000 will not pay anything. For estates worth £50,000 to £300,000, the fee is expected to be £750. It then rises in increments up to a maximum of:-
- £2,500 for estates worth between £500,000 to £1,000,000;
- £4,000 for estates worth between £1,000,000 to £1,600,000;
- £5,000 for estates worth between £1,600,000 to £2,000,000.
Executors will be given different options to fund the fee from the estate.
Justice Minister Lucy Frazer said the move was justified to support the courts service. However, many are arguing that this is just another “backdoor tax” by the Government. In any event, we may expect to see more people attempting to dispose of property in their lifetime, which can often by very effective but will likely require professional advice in order to ensure that property is passed correctly without attracting other unexpected taxes.
The fee is expected to be introduced in April 2019.
If you have any questions, Laura Sentkovsky in our private client team is always happy to assist laura@meaby.co.uk or 0207 703 5034.
