Kay Ingram, director of public policy at LEBC, argues that an increase in probate fees puts an unfair burden on bereaved families and discusses what they can do to avoid being required to pay probate fees and inheritance tax upfront
On 5 November 2018 the Ministry of Justice (MoJ) announced increases in probate fees, and this change will take effect from April 2019. Currently executors of estates over £5,000 pay a flat fee of £215 (or £155 if a solicitor applies). From April estates in England and Wales under £50,000 pay nothing but larger estates will pay more - up to £6,000 where the estate is valued at more than £2m.
This proposed increase has been condemned as an unfair tax on the bereaved by the ICAEW, the Law Society, a parliamentary committee and independent financial advisers. It is considered unfair as the fee scale is applied to the whole gross estate, before inheritance tax is deducted, and it applies to all assets, including those in joint ownership.
