Changes to probate fees
The government has resurrected plans which were dropped ahead of the 2017 general election for a sharp hike in probate fees.
- Estate value of <£50,000: Nil charge
- Estate value of £50,000 – £300,000: £250
- Estate value of £300,000 – £500,000: £750
- Estate value of £500,000 – £1m: £2,500
- Estate value of £1m – £1.6m: £4,000
- Estate value of £1.6m – £2m: £5,000
- Estate value of >£2m: £6,000
The new fees are expected to be applicable from April 2019.
Stuart Noakes, Head of Tax, comments:
“For estates over £2m this is the equivalent of reducing the IHT Nil Rate Band from £325,000 to £310,000. In the case where married couples/civil partners leave their estates to each other, there will be an element of doubling up of the charges on second death. There are ways to structure your estate so that some or all of it does not have to go through the probate process, which has always saved time for beneficiaries and now can save a substantial amount of money. It is now even more important that Estate Planning advice is taken to ensure that the maximum amount of your estate passes to your beneficiaries.”