You may remember reports in early 2017 about a substantial rise in Probate Fees. This caused an uproar that saw the Government backtrack on their decision until after the general election. Well, guess what … those reports are back!
We knew that an increase in Probate Fees would raise its ugly head again sometime, however, with everything else going on at the moment (Brexit to name just one and the worldwide economy another), we thought the Government might give us a break for a while – but apparently not.
All we know at present is that this is being revisited. Details are being held until a final decision has been reached, with plans for full implementation early next year. What we do know is that fees would never be more than 0.5% of the estate value. However, even at 0.5%, fees on a £250,000 estate would be £1,250, which is nearly six times more than the current level of £215 for estates over £5,000.
With receipts from Inheritance Tax reaching an all-time high in 2017/2018, the Government’s justification for raising Probate Fees so sharply must be questioned, especially when a large estate does not always mean more work!
There is no way to avoid paying these fees. However, there are things that can be done to reduce your estate for Inheritance Tax purposes and therefore reduce the size of the estate for the calculation of Probate Fees. Strategies that involve the implementation of Trust arrangements and Gifting from the estate would all be things to consider.
Redwood Financial is one of the souths leading Pensions, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of pension and financial wealth planning, we can advise on any situation. Join us at one of our Free Public Information Seminars: Book online Book Me A Place!, Call us on 01489877 547 or Email email@example.com to book a FREE Initial Meeting with us to review your financial planning needs.