Plans to raise fees have been shelved due to the calling of the general election.
The Ministry of Justice confirmed there was insufficient time to deal with the proposed changes before parliament closed ahead of June’s election. Confirmation is awaited if the government will press ahead with the changes after the election.
A Grant of Probate is normally required from the Court to provide authority to deal with assets for someone that has died. The government is planning huge rises in the fees charged to obtain a Grant of Probate to raise an additional £250m a year, although the administrative cost of providing a Grant of Probate is estimated at only £2m.
The current fee of £155 (for solicitors) and £215 (for individuals) will be replaced and the proposed fees at the lower end are:
- £300 for estates worth more than £50,000 and up to £300,000
- £1,000 for estates worth more than £300,000 and up to £500,000
- £4,000 for estates worth more than £500,000 and up to £1 million
- £8,000 for estates worth more than £1m and up to £1.6 million
In many cases the Estate will be tied up and a loan may have to be taken out to pay the fee to obtain the Grant of Probate. Estates valued at under £50,000 will be exempt from paying a fee.
The government’s consultation runs until 1 April 2017. There is a petition on the UK Government & Parliament website calling for the significant increases in probate fees to be reconsidered.
100,000 signatures will see this debated in Parliament.
If you or your clients would like to add your support, the link is below:
https://petition.parliament.uk/petitions/188175
We can make a change if we all sign up.
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