Did you know that the Government has changed the way they expect to collect Probate fees when somebody dies?
The Government recently announced changes to Probate Fees. Previously all Estates were charged a flat rate of £215, but now you will be charged on a scale depending on how much your Estate is worth on death.
Whenever a person dies, there is a requirement for the Executor to make a final account to Her Majesty’s Revenue and Customs (HMRC). To do this, there is a reconciliation of everything owned at date of death, and a final income tax return is also required.
There used to be a small fee to process the paperwork whatever the value of the account. Once this paperwork is approved then Probate is granted which allows the Executor to dispose of the Estate according to the terms of the Will once any tax due has been paid. Until Probate is granted the Estate is sealed and no payments, however necessary, can be made to survivors.
Taking into account the family home, the car and savings, the average estate is worth £400,000:
- £0 for estates worth less than £50,000
- £300 for estates worth between £50,000 and £300,000
- £1,000 for estates worth between £300,000 and £500,000: Nil Rate Band = £325,000
- £4,000 for estates worth between £500,000 and £1m: transferred Nil Rate Band = £650,000
- £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
No fee = No Grant : This fee is payable before Grant of Probate is provided and before the estate can be distributed to any beneficiaries. That’s a lot of money for your Executors to find which may delay the whole process.
FREE Estate Planning Review: Ask us to review your existing plans now, because you can take steps to reduce that fee.
These changes mean that a couple with an estate that would not be liable to Inheritance Tax would have to pay fees of £1,000 on first death will pay another £2,000 on the same assets when the second person dies as well as the £2,000 on their own share of the estate– that’s a total of £5,000 when there is no liability to Inheritance Tax just for your family to get access to what should be theirs. This is money in fees that could be going to your children/grandchildren.
’Who is the Executor of my Will?’ Many clients tell us they already have a Will that was arranged by their Solicitor or through their bank free of charge. This is great: but who is your Executor? Many banks will name themselves as Executors and charge on average 4% of the value of the Estate on death. This could add up to a large sum of money, which will reduce your family’s inheritance:
For an average estate worth £400,000, those 4% fees = £16,000 less of Inheritance
We could reduce your Probate fees so act now: call Lisa on 01873 840173 or contact us to rewrite your Will.
We remove all of the complications. We walk you through every stage clearly explaining the legal & financial issues surrounding a loved one’s passing.
Your fortune, your choice! So call us now on 01873 840173 to find out more, or first read our book “Dying to Know” – available through our website www.havenam.co.uk.