Government announce new probate fees

From April 2019 probate fees are set to dramatically increase

While the good news is that estates of less than £50k will not have to go through probate at all, the downside of the new proposals is that those above £50k will have probate fees increased from the current level which is:

  • £215 for self-administered estates
  • £155 for professionally administered estates

to;

  • Estates of £50k - £300k will be charged £250
  • Estates of £300k - £500k will be charged £750
  • Estates of £300k - £500k will be charged £750
  • Estates of £500k - £1 million will be charged £2500
  • Estates of £1 million - £1.6 million will be charged £4000
  • Estates of £1 million - £2 million will be charged £5000
  • Estates of more than £2 million will pay £6000

 

The GOOD NEWS is that there is a simple way of enabling anyone with a property that they live in to avoid the value of that property being taken into consideration for probate fees meaning that for the majority of our clients there would be no probate fees to pay at all as their resulting estate (after the domicile was taken out of the equation) would be under £50k. For the remainder with multiple properties or with large investment portfolios they would be able to significantly reduce the probate fees needing to be paid on their estate by employing the same strategy.

So how is it done?

Simply by putting your property into a Property Probate Trust.

The following are just 3 of the many benefits gained by employing this strategy;

  • The value of the property is deducted from the estate value significantly reducing or eliminating probate fees altogether
  • The property is prevented from being lost through sideways disinheritance should your spouse remarry after your death ensuring your children receive their inheritance as intended
  • Can prevent the local authority from using your home to pay for your care in the future so long as you have not set up the Trust for this reason solely
  • Can prevent generational inheritance tax being applied to the property in future years

Chat to us today about finding out how easy it is to protect YOUR property by calling us on 01903 649021