Back in early 2017, just before the last General Election was announced, there was a lot of press time taken over with the intended increase in Probate fees. The matter did not progress in 2017 but, unfortunately, Probate fees are set to increase in 2019.
When somebody dies, a Grant of Representation to the estate is normally required. If the deceased died leaving a Will, the executors need to obtain a Grant of Probate. If the person who has died, died without leaving a Will, (Intestate) the next of kin will need to obtain Letters of Administration. This document, either being Probate or Letters of Administration, will enable the Personal Representatives dealing with the individual’s estate to gather in the estate assets and pay them to the beneficiaries as per the terms of the Will or under the Rules of Intestacy, where there is no Will.
It was announced in November of last year that the Probate fees were due to increase in early 2019. At the moment, there is a standard Probate fee of £155.00 payable to the Probate Registry when applying for a Grant of Representation through a Solicitor (there is a higher fee of currently £215.00 for Personal Applicants). The new fees will be on a sliding scale beginning at the sum of £250.00 for estates valued up to £300,000.00 and increasing to a maximum fee of £6,000.00 for an estate worth more than £2,000,000.00. Although we are not yet sure of the exact date upon which the new fees are set to increase, with the Spring statement being held in mid March 2019, it may be that the start date for the increase in fees will be announced at that time.
As the fee to obtain the Grant is now to be based on the value of the assets held in the deceased’s name (normally the deceased’s sole name) as at the date of death, there may be ways of reducing the value of the estate, thus reducing the Probate fee payable to the Probate Registry.
If either cash or property assets are held in joint names, as “joint tenants” it means that assets will automatically vest in the co-owner at the time of death and, therefore, a Grant of Probate will not be required to transfer those particular assets. Of course, there may be other tax reasons why assets or property is held in joint names as tenants in common. The best advice in those situations, however, is for legal advice to be sought as to the best way of proceeding.
Are you thinking of gifting assets that you do not require to access during your lifetime? Gifting, of course, is a way of reducing your estate for Probate purposes. Again, careful advice needs to be provided because there are other considerations that need to be taken into account and we at Martyn Prowel Solicitors would certainly be able to advise you in this situation and to discuss such planning in detail. Please contact Natalie Harvey on 02920 470909 for further advice or for an appointment to be booked.