Probate Fees are set to increase by up over 13,000% because of new sliding scales despite 97.5% of people objecting to the changes as part of a consultation.
The cost of applying for Probate is between £155 and £215 depending if you go through a solicitor or apply individually, irrespective of the size of the estate. Now there is going to be a sliding scale.
The good news is that the threshold for small estates has increased from £5,000 to £50,000. These estates are exempt from fees. Estates from £50,000 to £300,000 pay £300 and estates from £300,000 to £500,000 will pay £1,000.
However, impact those with bigger estates is much greater. From £500,000 to £1 million the charge is £4,000. Up to £1.6 million the charge is £8,000 going up to £12,000 for estates up to £2 million. But, estates over £2 million will pay a massive £20,000 for Probate.
As house prices continue to increase, especially in London this is now an issue, especially as the charge needs to be paid up front and is on top of Inheritance tax.
Probate fees have now become a tax rather than an administration fee and they need to be considered in your estate planning. If you would like to discuss this or anything else connected with your financial planning get in touch.
Image from Flickr by Philip Taylor.