“Back Door Taxation” To Be Placed On Probate Process
Those dealing with a deceased’s estate to face higher fees.
It was announced via government websites that the fees charged for those going through the process of probate will change in May 2017.
The flat rate fee of £215 which could be reduced to just £155 by employing a solicitor will be replaced by a tiered system that is based on the value of the estate.
Although many are focusing on the increasing cost of those with valuable enough assets, those with lower value estates will have to pay nothing. Only those managing estates worth more than £50,000 will have to pay more. Those dealing with estates in excess of £1m will be charged between £8,000 and £20,000.
“Back Door Taxation”
Chief executive of Step, a company of professional family inheritance and estate planners George Hodgson described the change as “back door taxation.” He also points out that this is a charge that is imposed on families in the moment of grieving. Mortgage Protection Ipswich
Mr Hodgson is among those warning that many people will face higher charges. Financial planning expert at Old Mutual Wealth, Gordon Andrews says that the rise in house prices will push the value of many estates over the thresholds of higher fees. Since all those dealing with estates over £50,000 will be paying, a lot of people will have to face higher charges.
Mr Andrews says that “it is disappointing the government plans to press ahead with the new fee structure for grants of probates despite wide-scale concern from the industry.” The opposition comes partly from the fact that it is unclear that the value of somebodies estate directly determines the time and work it takes the courts to go through the probate process. Mr Andrews also argues that “these proposed changes will add further complexity to estate planning.”
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