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According to a government announcement made on the 5th of November, Probate Fees are set to rise for families from April 2019. These new fees will be used by the government to fund the Courts and Tribunal system and they have argued that through increasing these fees, they will allow a fair and efficient court system to be run.
The newly, revised structure has increased the fee on estates to ensure it will be no more than 0.5% of the estates value. However, around 25,000 estates will be excluded from probate fees completely as the value threshold on estates has been increased from £5,000 to £50,000.
From April 2019, the new fees payable when making a grant of probate application will increase from the current fee of £215 to:
£250 will need to be made on all estates valued between £50,000 and £300,000
£750 for those between £300,001 and £500,000
£2,500, for those between £500,001 and £1,000,000
Rising to £6,000 for estates over £2,000,000
The government claim this is designed to help those with less access to the courts and save important money. However, those with an estate of £50,000 or more may be left struggling to find the money to pay the increased fee under the new legislation.
With the price set to increase, it is more important now than ever to review your estate planning and ensure you are aware of all your options. One of the benefits of a lifetime trust is that Probate Fees on your estate can be mitigated or avoided.
Our Managing Director, Paul Dodsworth TEP, commented: “Whilst the proposal to raise the threshold to £50,000 is long overdue, and will help those with small estates, the amended proposal to increase the probate fee is a stealth or death tax on those who have worked hard to build an estate they hope to pass on to their loved ones.
However, the increased fees, and many other problems or potential problems, can be avoided by placing some, or all, of your assets into trust during your lifetime. Trusts are not for everyone and can be complicated so it is important you take advice from a STEP qualified practitioner before doing anything.”
For your free 30-minute consultation please call us today on 0800 781 6658 or visit our website at https://estplan.co.uk/contact-us/ and find out if you are eligible for a Family Trust today.