The Government is set to introduce a dramatic rise in probate fees, which will mean relatives of deceased property owners will be forced to pay as much as £6,000 to execute their will.
If estates are worth £2 million or more, they will have to pay £6,000.
This controversial ‘death tax’ has risen by 3,770% from £155.
Probate fees must be paid to the Government to obtain a deceased person’s property, money or possessions.
In 2019, probate fees will be calculated based on the value of an estate by using a sliding scale.
Assets are frozen when someone dies and the new plans mean that relatives will have to pay out more to take over their estates. Probate fees are paid on top of inheritance tax.
A new family home allowance was introduced in 2017, with millions of families completely removed from inheritance tax.
The new probate fees mean that:
- Properties worth between £50,000 and £300,000 will pay £250
- Properties worth over £1 million but less than £1.6 million will pay £4,000
- Estates worth more than £2 million will pay £6,000
The top fee is lower than the initial rate of £20,000 proposed in 2017.
Experts fear that it may discourage people from leaving a will.
Justice Minister Lucy Frazer said: “Fees will be set at a level to ensure that they will only be paid by those who can afford them, with all income going directly to our courts and tribunals – ensuring justice is done, and protecting victims and vulnerable people.”
Need to find a missing will or help with a probate matter? Contact Finders today.