Probate fees: A new tax?
When a loved one dies the process of dealing with their assets involves submitting an account to HMRC, paying any tax due and obtaining a Grant to their estate. Currently the court fee for obtaining the Grant is £155 if obtained through a solicitor or £215 if you apply direct to the probate registry.From May court fees are set to change and the new fees are based on the value of the deceased’s estate. The fees will be:
So for those with higher value estates not only will inheritance tax be payable but probate fees could be one hundred times what they are today! Is this another form of tax disguised as a fee?….
How will estates find the money to pay this fee? You cannot usually access the deceased’s assets until the Grant has been obtained so where is the money going to come from? Will the deceased’s bank release money before the grant is obtained to cover this fee?
This is just one more matter that an executor has to consider when dealing with the already complex process of administering an estate.
Here at Trethowans our expert Private Client team can guide you through this process in a straightforward and sympathetic manner. Please contact us for an initial no obligation chat at any of our offices.