Rise in Probate Fees Scrapped

Monday 28 October 2019

In 2017 the Government introduced a proposed rise in probate fees. Originally they proposed fees of up to £20,000 for an Estate over £2m.

However, the proposals were subsequently reassessed at a new rate of up to £6,000 for an estate over £2m. The fee for a Grant of Probate, or Letters of Administration, had previously been set at £215 if you applied personally, or £155 if a solicitor applied, with an additional fee of 50p per copy.

The new fees would be charged on a sliding scale depending on the size of the Estate, ranging from £250 to £6,000. This fee would be payable in addition to any Inheritance Tax (IHT) liability which may arise on the estate.

These fees were due to come into force later this year.

What happened next?

When the new proposed fee structure was suggested, arguments were raised that the increased fee was being used as an additional tax (rather than the fee being proportionate to the cost of producing the Grant of Probate).

Court fees are set to cover the administrational costs to the judicial system to complete the task or application. Therefore, the fees should be proportionate and shouldn’t be used to add financial benefit to the Government, which the new proposed fees could be seen to do.

The proposed rise in probate fees has caused many people to rush applications through the Courts and this has caused a significant backlog at the Probate Registry.

In addition, the Government has been scrutinised by academics who have argued that the increased probate fees have caused executors to rush to avoid being criticised by beneficiaries who obviously wanted the application submitting before the change in fees.

What does this mean for the proposals?

Due to an overwhelming amount of scrutiny and objections, the Government has now decided to scrap the proposed sliding scale fees for obtaining a Grant of Probate.

However, they have increased the fee for additional copies to £1.50 per copy (from 50p). This fee is in accordance with the administrational costs to the judicial system, meaning the fee is still proportionate and within the general principles of the judicial fee schedule.

Whether this will be the end to an increase in fees is yet to be seen because the fees have been proposed and scrapped twice. Further to this, the Government has already stipulated that they will review the fees in the annual judicial fee review.

At least for now, the fees will stay the same and the pressure on executors to complete the application within a short period of time has been relieved.

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