Expert Dubs Probate Fee Proposals a 'Stealth Tax'

Proposed hikes of up to 9,200 per cent in probate fees levied on bereaved families are a 'stealth tax,' according to one estate planning expert.

Currently, probate fees are charged at a flat rate of £215 for all estates worth £5,000 or more. However, a major shakeup is in the pipeline that will set the cost at £300 for those inheriting £50,000-£300,000, and escalating to £20,000 for estates worth £2million-plus.

Experts claim that if these changes go ahead, the Government could raise more than £250million a year. However, Ian Dyall, head of estate planning at wealth and investment firm Towry, claims the new proposals are nothing short of a 'stealth tax.' He said:

"I appreciate the government's desire to balance the books and the need for increased tax revenue but this new probate fee is an example of a stealth tax.

"The size of the probate fee bears no relation to the work involved in processing the case – it is simply another method of generating extra revenue. Their own figures show that they expect to generate an additional £256millon from this change.

"Many people who are looking forward to paying less inheritance tax due to the introduction of the residence nil rate band will lose a significant part of that saving in probate fees. A £20,000 charge on a £2million estate is the same as adding 1 per cent to the inheritance tax rate."

For information or advice relating to probate, speak to our team of solicitors in confidence, on 01625 522 429.

Richardson Law

Probate Solicitors