
Happy New Year - our first newsletter of 2021! Throughout this year we will continue to bring you news and developments relating to the charities sector.
For many years, there has been a flat-fee charge for probate application – £155 for solicitor applications (plus 50p per office copy of the probate required) and £215 for personal applications. These fees have applied to all estates with values exceeding £5,000.
This system will all change soon. Although the exact date of the change is presently unknown, it is likely to be in or around April 2019 and will have a significant impact on estate administration and the costs of dying.
The New Fee Structure
The new probate fees will apply on a sliding scale based on the value of an estate. Although still to be confirmed, the current proposals are for probate application fees between £250 and £6,000.
Estate value | Proposed probate application fee |
£0-£50,000 | £0 |
£50,000-£300,000 | £250 |
£300,000-£500,000 | £750 |
£500,000-£1 million | £2,500 |
£1 million-£1.6 million | £4,000 |
£1.6 million-£2 million | £5,000 |
Over £2 million | £6,000 |
These massive fee increases are widely seen as a ‘stealth tax’ on estates, and will not be popular. However, they look set to be implemented – with the only consolation being that they are less than 2017’s proposal, where fees of up to £20,000 would have been payable.
Regardless as to your views on the fee or ‘stealth tax’ position, the reality is that these fees will have a significant impact on the costs of estate administration and will add to the ‘to-do’ list and pressures upon grieving families – adding yet another cost to the business of dying. Current estimates suggest 1 in 5 families will need to find at least £2,500 for a probate application.
Executors will need to factor in finding sufficient funds to pay for the cost of the probate application as well as any inheritance tax due before the grant of probate can be issued – no doubt adding to potential delays and pressure on cash flow in estates.
For many estates, the main asset is a house that cannot be sold without a Grant of Probate – but there may not be enough cash available to meet funeral costs (as the first debt of the estate), inheritance tax and these increased probate application fees. This will present a challenge for executors and also those planning their estates to minimise the impact and issues faced by their families on death, so thinking about the issues at an early stage will be a must.
Further information
For more information on estate planning, probat and estate administration and will preparation, please contact Donna Holmes or Lisa Whitehouse.
Happy New Year - our first newsletter of 2021! Throughout this year we will continue to bring you news and developments relating to the charities sector.
Local authorities should be wary of reserving contracts for local suppliers, as recommended by Procurement Policy Note (PPN) 11/20. Other contracting authorities may want to maximise their use of this
Most housing practitioners have perhaps been waiting for this news since the latest lockdown was announced by the Prime Minister on 4 January 2021.
Climate change and biodiversity is an area where significantly faster changes are needed on a global and local basis.
Chris Lloyd Smith, Adrian Leonard and Lisa Whitehouse discuss the planning opportunities available to owners of businesses and how to prepare for unforeseen events.
In their 3rd podcast of the series, Chris Lloyd-Smith and Maria Ramon discuss a number of problems with and difficulties that can arise in mediation and the mechanisms they use to overcome them.
Our previous round-up began by sharing the news that two vaccines had shown very promising test results. Here we are, not even a month later, and the first vaccines have already been administered!
The Covid-19 crisis has demonstrated that there is great resilience and innovation in the housing sector across Greater Manchester, it has also brought shortfalls and other priorities sharply into foc
For part 5 in this series of short podcasts, Chris Lloyd-Smith interviews associate Kadie Bennett on how she has been coping during these unprecedented times.
The first report of Donna Ockenden and her team into the review of maternity services at The Shrewsbury and Telford Hospital NHS Trust has been published today.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.