Call us on: 01772 729 742 | Email us at: enquiries@springfieldfs.co.uk
Springfield Financial Services Chartered Logo
  • Home
  • About You
    • Building Wealth
    • Managing Wealth
    • Estate Planning & Later Life
  • About Us
    • Our People
    • Corporate Chartered Status
    • Awards
    • Charity and Sponsorship
  • Financial Services For You
    • Investment Planning
    • Tax Planning
    • Pensions and Retirement Planning
    • Inheritance Tax, Trust & Estate Planning and Later Life
  • News
  • Get In Touch
Call us on: 01772 729 742 | Email us at: enquiries@springfieldfs.co.uk
Springfield Financial Services Chartered Logo
  • Home
  • About You
    • Building Wealth
    • Managing Wealth
    • Estate Planning & Later Life
  • About Us
    • Our People
    • Corporate Chartered Status
    • Awards
    • Charity and Sponsorship
  • Financial Services For You
    • Investment Planning
    • Tax Planning
    • Pensions and Retirement Planning
    • Inheritance Tax, Trust & Estate Planning and Later Life
  • News
  • Get In Touch
Call us on: 01772 729 742 | Email us at: enquiries@springfieldfs.co.uk
Springfield Financial Services Chartered Logo
  • Home
  • About You
    • Building Wealth
    • Managing Wealth
    • Estate Planning & Later Life
  • About Us
    • Our People
    • Corporate Chartered Status
    • Awards
    • Charity and Sponsorship
  • Financial Services For You
    • Investment Planning
    • Tax Planning
    • Pensions and Retirement Planning
    • Inheritance Tax, Trust & Estate Planning and Later Life
  • News
  • Get In Touch
Springfield Financial Services Chartered Logo
  • Home
  • About You
    • Building Wealth
    • Managing Wealth
    • Estate Planning & Later Life
  • About Us
    • Our People
    • Corporate Chartered Status
    • Awards
    • Charity and Sponsorship
  • Financial Services For You
    • Investment Planning
    • Tax Planning
    • Pensions and Retirement Planning
    • Inheritance Tax, Trust & Estate Planning and Later Life
  • News
  • Get In Touch
The Value of Advice
October 29, 2019
Should I Consider a Lasting Power of Attorney?
October 29, 2019

Expected Increase to Probate

October 29, 2019
Springfield Financial logo

The Government is planning substantial changes to the level of probate fees. The changes were announced in November 2018 and were expected to come in to force in May 2019. Final approval has been delayed due to parliamentary Brexit negotiations; however, they are expected to go ahead.

The new legislation, which will apply in England and Wales, will raise the estate value threshold from £5,000 to £50,000, which will exclude around 25,000 estates from probate fees altogether. However, people who inherit more than £50,000 will have to pay the levy before the court will give the executors ‘probate’, which allows them to collect and distribute the property, money and possessions of the person who has died. It will apply to all estates – even those left to a widow or widower who is exempt from IHT.

What are the probate fees?
At the moment probate costs a flat fee of £155 when a solicitor is involved and £215 if it is done personally. The charges will rise on a sliding scale and will range from £250 to £6,000 depending on the size of the net estate after debts have been paid.

Expected probate fees in England and Wales
The new fees will be based on the net value of the estate after debts but before inheritance tax is paid;

Value of estateCurrent feeNew feeNo of estates per year
Up to £5,000£0£0241,000
£5,001 to £50,000£155/£215£023,000
£50,001 to £300,000£155/£215£250126,000
£300,001 to £500,000£155/£215£75059,000
£500,001 to £1m£155/£215£2,50030,000
Over £1m to £1.6m£155/£215£4,0005,000
Over £1.6m to £2m£155/£215£5,0001,500
Over £2m£155/£215£6,0002,500

Source: Ministry of Justice November 2018 and Freedom of Information response August 2017.

No IHT to pay, but new probate fee to pay
The new fee will be a shock to many people who inherit a house and savings that are well below the threshold for IHT but will nevertheless face this new levy. Around 200,000 estates will pay the charge even though they will not pay IHT.

Difficulties could arise where there is no immediate access to funds in the Estate, for example if the Estate comprises just a house or investments and a Grant is needed for release of funds. It may fall upon the beneficiaries to fund the probate fee until the estate assets are administered.

Why the change?
The Government says it spends £1.6 billion running the court service but raises less than half that in fees. The extra £145 million from this new tax will reduce the cost of the courts to other taxpayers.

If you would like to find out more about these proposed changes, please contact one of Springfield Financial Services’ Chartered Financial Planners on 01772 729742.

Share
0

Related posts

2021 Spring Budget
March 16, 2021

Our 2021 Spring Budget Summary


Read more
Financial vulnerability task force a safe pair of hands
March 9, 2021

Financial Vulnerability Taskforce – A Safe Pair of Hands with Springfield


Read more
An up to date Will
January 22, 2021

The importance of having an up to date Will


Read more

Recent Posts

  • Our 2021 Spring Budget Summary
  • Financial Vulnerability Taskforce – A Safe Pair of Hands with Springfield
  • The importance of having an up to date Will
  • Changes to Pension Freedoms Age – What you need to know
  • Office of the Public Guardian launches new online power of attorney service

Archives

April 2021
MTWTFSS
 1234
567891011
12131415161718
19202122232425
2627282930 
« Mar    

Our Services

  • Investment Planning
  • Tax Planning
  • Inheritance Tax, Trust & Estate Planning and Later Life
  • Pensions and Retirement Planning

Legal Policies

  • Cookie Policy
  • Privacy Policy

Financial Conduct

Financial Conduct Authority Financial Ombudsman Service
© 2019 Springfield Financial Services | Website by Voodoo Agency
      This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
      Privacy & Cookies Policy

      Privacy Overview

      This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
      Necessary
      Always Enabled

      Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

      Non-necessary

      Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

      SAVE & ACCEPT