Whilst Inheritance Tax has been subjected to additional relief from 2017 there are plans afoot to increase the cost of obtaining probate. Executors of Wills need a grant of probate before dealing with the property, money and possessions of a deceased person. The current flat rate cost of £215 is set to increase in varying amounts upwards according to the value of the estate.
For estates worth between £50k and £300k the fee will rise to £300. Between £300k and £500k it will be £1000 and between £500k to £1m the cost will rise to £4000. Estates of £1m plus will face fees of £12000 which is almost 56 times more than at present. Estates above £2m will have to pay £20000 ie 93 times more than at present.
The average property price in England is £301k so those dying who own such a property without any borrowings on it will have to pay nearly five times the current rate. In the South East where the average property price is £536k then the cost of probate will be more than 18 times the present rate.
The Ministry of Justice said that the increases are necessary, making a significant contribution to reducing the deficit and enabling investment which will transform the courts and tribunal service.
Surely a case of giving with one hand and taking with the other!
