- Request a call back
The government is planning huge rises in the probate fees charged when an individual dies and leaves property to their relatives in a bid to raise an additional £250m a year.
The flat £215 fee will be replaced with a new system of tiered charges that would result in some paying as much as £20,000 for estates worth more than £2m.
For estates worth between £500,000 and £1m the new fee will be £4,000, rising to £8,000 for those worth between £1m and £1.6m, and £12,000 for those valued at between £1.6m and £2m.
Given the sharp rise in the value of property in many parts of the UK in recent years, many families could find themselves hit by the higher charges after a loved one passes away.
Obtaining a grant of probate is the process by which someone is given the authority to deal with the property, money and possessions of a person after they die.
The Ministry of Justice said the measures would also mean that estates worth less than £50,000 – 57% of the total – would pay no fees, while a further 27% would incur a “modest” increase of £85 to £300.
Proposed new probate fees before inheritance tax:
- £300 for estates worth more than £50,000 and up to £300,000
- £1,000 for estates worth more than £300,000 and up to £500,000
- £4,000 for estates worth more than £500,000 and up to £1m
- £8,000 for estates worth more than £1m and up to £1.6m
- £12,000 for estates worth more than £1.6m and up to £2m
- £20,000 for estates worth more than £2m
Smart tax planning and bloodline protection
To find out more about how these new fees could affect you or your loved ones, contact us today for impartial guidance: Call 0161 246 6326 or email firstname.lastname@example.org
The strategic use of Trusts can ensure that your children and grandchildren are able to benefit completely from the inheritance you want them to receive and at the same time, protect the family home and other assets from being lost.