Probate fees are due to rise in May 2017.
Following a consultation in 2016, significant increases in the fees payable for a grant of probate are due in May this year. Currently the system requires a flat fee to be paid, which is, if carried out through a solicitor, £155 and if not, the fee is £215. This will change in May to a banded fee, relative to the value of assets and the estate. A table below shows the potential costs and significant potential increase, which could have implications on families, assets held and businesses involved within the probate.
| Value of Estate (before Inheritance Tax) | Proposed Fee |
| Up to £50,000 | £0 |
| £50,000 – £300,000 | £300 |
| £300,000 – £500,000 | £1,000 |
| £500,000 – £1mil | £4,000 |
| £1mil – £1.6mil | £8,000 |
| £1.6mil – £2mil | £12,000 |
| £2mil and above | £20,000 |
Executors of the estate will need to raise funds before an application can be made. A farming business could struggle should large lump sums be needed to administer the estates and could result in having to sell land or buildings to cover the increased costs.
The fee required is based on the value of the estate before any exemptions and reliefs have been applied. This would mean Agricultural Property Relief (APR) and Business Property Relief (BPR) cannot be deducted before calculating the fee due as far as the application is concerned.
As mentioned at our recent seminar held at Chelmsford Race Course consideration should be given to options to try and reduce this forthcoming additional ‘tax’ burden.
Contact us at Land Partners if you would like any further advice or assistance.
