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DARLINGTON-BASED Latimer Hinks Solicitors is warning that upcoming changes to probate fees are a ‘ stealth tax ’ and will leave many people in the region out of pocket .
Obtaining a Grant of Probate , or letters of administration if there is no will , is the process by which executors secure the authority to deal with the property , investments and money of someone who has died .
From May 2017 the way probate fees are charged changed to use a banded system based on the value of the deceased ’ s estate , moving away from the current flat fee of £ 215 for private applications ( or £ 155 when a solicitor handles the process ). The changes
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mean a charge of up to £ 20,000 will be made before Probate is granted and before assets can be released . £ 20,000 will be charged for estates over £ 2m , £ 12,000 will be charged for estates of between £ 1.6 and £ 2m .
Latimer Hinks ’ Chief Executive Anne Elliott ( pictured ) believes the changes are unfair . She said : “ These changes , which are already attracting media and political criticism , are all well and good for people with large bank balances , but for people who are ‘ asset-rich but cash-poor ’ as is often the case , particularly in the North East , these changes are an unfair financial burden .
“ This could well hit the landowning and farming
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community in the region particularly hard . A farm may easily be worth in excess of £ 2m on paper , but finding £ 20,000 in cash to pay Probate fees could be problematic . For Inheritance Tax purposes the farm could well be exempt from tax but now there will be what amounts to another tax . Some clients may need to take , extend or increase loans to cover the fees .”
Anne also questioned the reasoning behind the changes : “ Ultimately the service delivered by the Probate Registry is the same whether it is an estate valued at £ 10,000 or £ 1m , so why should the cost be any different ? It just adds to the cost of our already immensely complex system of taxation .”
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