Wealden Times | WT209 | July 2019 | Summer supplement inside

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Receiving grant of probate
The Government’s controversial plans
to increase probate fees, replacing the
current flat rate with a sliding fee scale
based on the value of an estate, is still
to increase probate fees and not come to
fruition; the snap general election in 2017
meant that the Ministry of Justice ran out of
time to pass legislation which would have
Registries advise you should allow at least
12 weeks after submitting an application for
your grant to be issued. However, interest
begins to accumulate on unpaid inheritance
to come into effect, explain Ray Bennett seen fees up to £20,000 for the highest tax bills after six months from the date of
Receiving grant of probate
and Claire Tyrrell, probate managers at value estates.
the deceased’s death. Can HMRC really
The Cripps Government’s Pemberton controversial Greenish. plans to increase probate fees, replacing the current flat rate with justify a charging interest from that point
sliding fee scale based on the value of an estate, is still Whilst to come there into is still effect uncertainty explain Ray as Bennett to and Claire when executors and administrators are
Tyrrell, In plans probate announced managers at the at end Cripps of last Pemberton year, Greenish. whether this proposal will pass through the unable to deal with estates in a timely
Lucy Frazer MP, Parliamentary Under current parliament, solicitors and probate manner, for reasons completely out of their
In plans announced at the end of last year, Lucy Frazer MP, Parliamentary Under Secretary of State for
Justice, Secretary explained of State changes for Justice, were explained needed to upgrade practitioners and modernise have the been court taking system steps as well to as to ensure control?
that changes access were to justice needed is widely to upgrade available. and protect clients from the fee increases by
modernise the court system as well as making as many applications as they can In some cases, this will not matter: a grant
Currently, any estate valued at over £5,000 attracts a fixed probate fee of £215 for individual applicants
to ensure that access to justice is widely under the current fee structure. This has of probate is not automatically required
and £155 for those applying through a solicitor. Estates worth less than £5,000 are exempt. Under the
new available. plans, the threshold will increase from £5,000 meant to £50,000, many more saving applications an estimated for 25,000 probate estates from when someone passes away. Low value
having to pay a fee.
than would normally be expected. The estates and assets that were jointly owned
The proposed new fee structure is as
follows: The proposed new fee structure is as follows:
result of the influx is a significant back-log
at the probate registries; a recent update
and pass automatically by survivorship,
for example joint bank accounts, will not
Proposed fee structure
require a grant, and so the delays at the
registry (and the possibility of increased
7000
fees) will not add to the family’s concerns at
that difficult time.
6000
Proposed fees (£)
5000
4000
3000
2000
However, where the estate is big enough
to need a grant of probate and none of the
exemptions apply, some clever lifetime
estate planning can help to reduce the
value of the estate and hence the tax bill
(and the fees, if the sliding scale does
eventually come into force).
1000
0
Less than
£50,000
£50,000 -
£300,000
£300,000 -
£500,000
£500,000 -
£1,000,000
Value of estate
£1m - £1.6m £1.6m - £2m £2m and
above
Before acting on the options available,
you should seek independent legal
advice regarding your circumstances to
establish the best way to move forward.
Our specialist private client team can
advise you on ways to mitigate the impact
It is unclear how executors are expected from one registry announced that they are 3 that future fee increases will have through
It
to
is
fund
unclear
these
how
fees
executors
which will
are
be
expected
payable
to fund these
months
fees
behind
which will
processing
be payable
applications.
before a grant is issued.
succession planning and reviewing your
Many people hope that banks and other financial institutions will release funds in much the same way
before a grant is issued. Many people hope
wills. They can also advise on steps you can
as they do now for inheritance tax.
that banks and other financial institutions These delays, aggravated by the
take to submit an application for a grant of
So will what’s release next? funds The in proposal, much the which same way was as due to introduction take effect at of the a new end of computer April 2019, system has still not been probate before the increase in fees come
implemented they do now for and inheritance with the Government’s tax. attention in the currently probate on service other matters, - never it an is easy unclear when into or if force.
this proposal will come into effect. This is not the first time that plans have been proposed to increase
experience – are causing frustrations
probate fees and not come to fruition; the snap general election in 2017 meant that the Ministry of
Justice So what’s ran next? out of time The to proposal, pass legislation which was which would for executors have seen and fees solicitors up £20,000 alike. for Banks, the highest value If you require further guidance please
estates. due to take effect at the end of April 2019, investment companies and other asset contact Ray Bennett at
has still not been implemented and with holders often insist on seeing a grant of Ray.Bennett@crippspg.co.uk or on
Whilst
the Government’s
there is still
attention
uncertainty
currently
as to whether
on
this
probate
proposal
before
will pass
releasing
through
funds;
the
the
current
delays
parliament,
01892 506120. Alternatively, please visit
solicitors and probate practitioners have been taking steps to protect clients from the fee increases by
making
other matters,
as many
it
applications
is unclear when
as they
or if
can
this
under the
in granting
current fee
probate
structure.
have
This
brought
has meant
the
many more
www.crippspg.co.uk/services/probate/
proposal will come into effect. This is not
the first time that plans have been proposed
administration of a number of estates to an
abrupt standstill.
for more information.
20247808.1
www.crippspg.co.uk @crippslaw This article gives examples and is intended for general guidance only