Probate Fees The New Stealth Tax
Posted on 6th April 2017 at 07:50
The new Stealth Tax as may are calling it, is now in place, the new Probate Fees. These new band of fees are going to make it hard for may people who are faced with the task of sorting out their families Estates, putting a financial burden on families that may not have ready funds available to be able to pay the fees that are required upfront for probate to be granted.
The New Probate Banding:
The Value of The Deceased Estate: New Fee For Probate:
Estate Value up to £50,000 £0
Estate Value Between £50,000 and £300,000 £300
Estate Value Between £300,000 and £500,000 £1,000
Estate Value Between £500,000 and £1,000,000 £4,000
Estate Value Between £1,000,000 and £1,600,000 £8,000
Estate Value Between, £1,600,000 and £2,000,000 £12,000
Estate Value over £2,000,000 £20,000
With House Prices still steadily increasing, and many families now owning second properties or more, it is likely that a large percentage of people are now going to Estates that are worth considerably more that a few years ago, and may people are property or asset rich rather than having physical money in the bank.
Unfortunately Money tied up in the Estate of a deceased cannot be accessed to pay the probate fees, so what can people do to help ensure funds are available to their families?
One of the things that people can do as part of their Estate planning, is having a Whole of Life Insurance policy in place, which has been placed in to Trust (this will avoid the Insurance money paying out into the Estate and again being untouchable until probate has been granted). The policy can be used specifically to cover expected Probate Fees, and as it has been placed in to Trust, will payout outside of the deceased Estate, making it available immediatly upon death (withproduction of a death certificate and Trustees ID).
Please Call Angela Jane if you would like help with your Estate Planning - 07825 331447, I offer home visits throughout Northamptonshire and Bedfordshire.
Tagged as: Estate Planning
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