What’s happening with Probate fees?
A few months ago we posted about proposed change to Probate fees, due to come in to force in this financial year.
You can read the blog here.
So far, the changes haven’t been implemented. The legislation has not been a priority in the context of Brexit and the Conservative leadership issues.
That’s good news for many, because the fees for many are likely to increase dramatically. Your Executors will have to pay the fee when they apply for the Grant of Probate. Although their costs can be claimed back from the estate, this may be a large sum to have to find up front.
It is still likely that the changes will come in to force, but there is time for you to do some wise estate planning now!
First, give serious consideration to the value of your estate. This will help you to estimate the fee likely to be due when your Executors apply for Probate.
Proposed fees for Probate application
Estate value : Fee
Up to £50,000 : Nil
£50,000-£300,000 : £250
£300,001-£500,000 : £750
£500,001-£1m : £2,500
£1,000,001-£1.6m : £4,000
£1,600,001-£2m : £5,000
Over £2m : £6,000
You might consider taking out a life insurance policy and putting it in to a Trust which would pay out to your Executors before Probate is granted. This money can be used to pay for the application.
There may be other tax efficient ways for you to structure or administer elements of your estate now, which will have an impact on the assets remaining in your estate when you die, or that of your spouse on their death.
The crucial thing is to take advice to ensure you are as well prepared as possible.
Book an appointment to talk to us about your estate. We offer a free Will Review, which is a great opportunity for you to re-evaluate your arrangements, if necessary.