The probate fee structure is changing, and for many it won’t be for the better. Fees charged for probate – which allows legal control over a deceased’s estate – are currently fixed at £215 – or £155 for families who use a solicitor.
But the Government announced that the charges will be linked to the size of the estate.
Under the proposed new system, estates valued at more than £2m will now pay £6,000, while those worth between £1.6m and £2m will pay £5,000 and those between £1m and £1.6m £4,000.
Estates worth between £500,000 and £1m will have to find £2,500, while those in the £50,000 to £300,000 price bracket will pay a more affordable £250. Those valued at less than £50,000 will be exempt compared with the current and lower threshold of £5,000.
According to estimates, one in five families who pay fees will need to find at least £2,500.
Funding these higher costs could also prove a challenge for executors.
Probate fees paid upfront
Aside from the soaring costs, executors will also have to pay the fee up front before reclaiming it from the estate once probate has been granted.
Some families will be left no choice but to borrow to be able to foot the bills.
Although these fees are lower than those proposed by the Government in 2017, when bills were projected to rise as high as £20,000, they till need to be funded.
Call us to discuss a low cost and tax efficient way of ensuring your estate’s representatives have the cash available at a difficult time.