Increase in Probate fees in the Budget 2017

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  • troubleinparadise
    troubleinparadise Posts: 1,120 Forumite
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    SPBG wrote: »
    Why is the media so quiet about the huge increase in probate fees the government is bringing in in May? Is it a tax on the south of England where property prices are so expensive? Just because someone has managed to buy a house doesn't mean they have loads of spare money to pay this unfair and enormous tax. Will the surviving spouse have to sell the family home to pay? It just seems so awful, but there is so little comment about it in the media. Is that how the government hope to get away with this stealth death tax?

    I'm sure that the increase in the probate fee will cause worries, but hopefully raising the funds to pay will not require a house to be sold - some pre-planning before the situation arises will help; from The Telegraph:

    "People concerned about how beneficiaries will pay the probate fees could leave sufficient funds in a life insurance policy, and provided the policy is written in trust, it can be accessed immediately on death, without the need for probate."

    As the maximum fee is to be £20,000 for estates over £2 million, a policy hopefully shouldn't be too expensive.
  • Keep_pedalling
    Keep_pedalling Posts: 16,620 Forumite
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    SPBG wrote: »
    Why is the media so quiet about the huge increase in probate fees the government is bringing in in May? Is it a tax on the south of England where property prices are so expensive? Just because someone has managed to buy a house doesn't mean they have loads of spare money to pay this unfair and enormous tax. Will the surviving spouse have to sell the family home to pay? It just seems so awful, but there is so little comment about it in the media. Is that how the government hope to get away with this stealth death tax?

    Not that awful, worse case scenario for our 2 estates would be £12k in probate fees, but that is more than set off with £120k reduction in IHT with the main residence nil rate reaching its maximum in the not too distant future.
  • Flugelhorn
    Flugelhorn Posts: 5,577 Forumite
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    ours would be 4-8k on second death - would there be any problem in having a joint account with the executors (the kids) with the money in it for easy access?
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    Flugelhorn wrote: »
    ours would be 4-8k on second death - would there be any problem in having a joint account with the executors (the kids) with the money in it for easy access?

    What do you hope to change by doing that?
  • hollie.weimeraner
    hollie.weimeraner Posts: 2,147 Forumite
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    getmore4less wrote: »
    What do you hope to change by doing that?

    I imagine the same as a lot of others in that situation, it would alleviate the need for the executors to find the means to pay for probate before they have access to the estate.

    I know my sons currently wouldn't have the funds to pay my probate fees so would need to arrange a loan unless I made arrangements for them (such as access to a joint bank account)
  • Flugelhorn
    Flugelhorn Posts: 5,577 Forumite
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    edited 13 March 2017 at 9:14PM
    getmore4less wrote: »
    What do you hope to change by doing that?


    nothing specific changes - at present we have 2 kids at Uni, they are the executors of our wills. Should we both wobble off our perches before they are earning any money they would be in a difficult position in applying for probate etc etc Just pondering on how I could make access to some money to pay for the probate easier for them as presume they could not get at our bank accounts until probate is granted?
  • Yorkshireman99
    Yorkshireman99 Posts: 5,470 Forumite
    Flugelhorn wrote: »
    nothing specific changes - at present we have 2 kids at Uni, they are the executors of our wills. Should we both wobble off our perches before they are earning any money they would be in a difficult position in applying for probate etc etc Just pondering on how I could make access to some money to pay for the probate easier for them as presume they could not get at our bank accounts until probate is granted?
    The bank would probably release funds for the probate fees just as they will to pay the funeral costs. You might want to talk to the bank about this now.
  • Flugelhorn
    Flugelhorn Posts: 5,577 Forumite
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    Yorkshireman99 wrote: »
    The bank would probably release funds for the probate fees just as they will to pay the funeral costs. You might want to talk to the bank about this now.

    Good point - would be sensible if something like that happened, otherwise some executors (who may well not be beneficiaries) could be out of pocket
  • troubleinparadise
    troubleinparadise Posts: 1,120 Forumite
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    Yorkshireman99 wrote: »
    The bank would probably release funds for the probate fees just as they will to pay the funeral costs. You might want to talk to the bank about this now.

    The only problem being whether the deceased has enough bank or savings account funds to meet the Probate fee!

    I imagine that once it is realised this will be necessary, people will start making provision for it, however reluctantly... ;)
  • Yorkshireman99
    Yorkshireman99 Posts: 5,470 Forumite
    troubleinparadise wrote: »
    The only problem being whether the deceased has enough bank or savings account funds to meet the Probate fee!

    I imagine that once it is realised this will be necessary, people will start making provision for it, however reluctantly... ;)
    A similar problem exists with paying IHT. It is quite usual for executors to have to borrow this secured on the estate assets.
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