Probate Fees could be on the rise!
The Ministry of Justice published a consultation paper on 18th February 2016 discussing the proposed reforms on fees for non-contentious probate applications. If the proposals are implemented, this would mean significant increases in the fee payable to the probate registry when applying for a grant of probate.
The proposed changes would see the fixed fee arrangements for probate applications replaced by a banded fee structure, which would be linked to the value of the deceased’s estate. There would also be an increase in the threshold on which the probate fee is payable, from £5,000 to £50,000.
Current fees for an estate worth over £5,000 are £155 for a solicitor making the application or £215 for a personal application. For those who have limited financial means, there is the option to apply for the fee to be reduced or waived in full (Non-Contentious Probate Fees Order 2004 (SI 2004/3120) (as amended).) Under the reforms, this option to reduce or waive the fee would be removed on the grounds that the deceased’s personal representatives will be able to fund the fee out of the deceased’s estate, given the proposed higher threshold of £50,000.
Although the government are suggesting that the reforms are fair and progressive, the new system may be seen as some to be unfair system which would see those who have high-value estates paying fees of up to £20,000. The use of the new system would also see a significant difference in the fees payable on an estate worth £1.99 million (£12,000) and £2.01 million (£20,000).
Although the proposed new probate fee would never exceed 1% of the estate of the deceased, such a fee could feel like a tax on wealth rather than an administration cost.
The consultation closes on the 1st April 2016.
For further advice in connection with Probate and Estate Administration matters, please contact Rebecca O’Donnell on 0161 641 4555
