Just a year ago, a proposal from the Ministry of Justice for a gradual increase in probate fees was traced. The concept has received a negative response from various professional bodies. Probably you will soon have to visit you Tax Service Provider, as the government has decided to move ahead anyway with this proposal.
Now, it has been declared that probate fees will increase and this new law will come into action this May on a date yet to be declared. As per present situations, the estate inheriting cost is all set to increase. According to the government proposal probate fees will increase along with the value of an estate.
Administrator and executor have to pay probate fees in order to obtain the grant of representation and get access to a deceased person’s bank account, shares, and other assets. Consequently, probate cost on a deceased person’s estate would increase by round sum amount of pounds.
These estates can be beneficial to pay the probate fees. Before getting the grant the administrator is not likely to access potential funds tied in the estate, it means that they have to pay fees by their own at an initial stage.
The government is strategizing to raise the probate fees as per the value of the property left by the person in their will.
Not all properties are needed to undergo through probate. The proposed rate of the estate, below which there is no fee payable would be from £5,000 to £50,000. The fee is currently levied at a flat rate of £215 (or £155 when solicitor made application). The proposed probate applications fee for different worth of the estates is as below-
- £300 for estates valued more than £50,000 and up to £300,000
- £1,000 for estates valued more than £300,000 and up to £500,000
- £4,000 for estates valued more than £500,000 and up to £1 million
- £8,000 for estates valued more than £1m and up to £1.6 million
- £12,000 for estates valued more than £1.6m and up to £2 million
- £20,000 for estates valued more than £2 million
Hence, it is good news for people holding properties worth less than £50,000, there is no need to pay tax on these estates. Thus, a burden of paying probate fees will decrease according to government estimation. For more information, you can simply consult your Tax service provider and get an estimation of your property tax and probate fees.