It has recently been announced that changes in Probate fees will be introduced next year in England and Wales. The changes in fees outlined by the Government mean that in some cases (where the estate is worth less than £50,000) the person administering the estate won’t have to pay anything, whilst those administering more expensive estates could pay almost £6,000.
This fee is paid directly to the Probate Court when dealing with someone’s estate to obtain the Grant of Probate or the Grant of Letters of Administration (both also commonly known as the Grant of Representation).
What is a Grant of Probate?
A Grant of Probate is a legal document which formally authorises the Executors appointed in a Will to finalise the estate enabling them to sell or transfer a property, close bank accounts, cash in investments, settle any debts and then distribute the estate in accordance to the Will.
If a person dies without a Will, then a Grant of Letters of Administration would need to be obtained to formally authorise the Administrator (who would be the next of kin) to finalise the estate and then distribute the assets in accordance to the rules of intestacy.
Changes in Probate fees – Current and new system
On the current fee system, there is no fee to pay if an estate is worth under £5,000. Where an estate is worth over £5,000, there is a fixed Probate fee of £215 to pay, or £155 if this is applied for via a solicitor.
The new fee system, which will come into force on 1st April 2019, the fees payable would be based on the value of the estate itself:-
- For estates under £50,000 there will be no Probate fee to pay
- For estates worth between £50,000 and £300,000 the fee will be £250
- For estates worth between £300,000 and £500,000 the fee will be £750
- For estates worth between £500,000 and £1 million the fee will be £2,500
- For estates worth between £1 million and £1.6 million the fee will be £4,000
- For estates worth between £1.6 million and £2 million the fee will be £5,000
- For estates worth over £2 million the fee will be £6,000
How Nelsons can help
If you would like to discuss any of the points raised in this article, please do not hesitate to contact a member of our Wills, Trusts & Probate team on 0800 024 1976 or via our online form.