Previously a family would pay a flat fee of £215 on estates over £5000.
The £5000 limit has been increased to £50,000 which means that, according to the Ministry of Justice, an extra 25,000 estates a year will not pay any fees at all.
However for estates over £50,000, this will mean an INCREASE in fees.
Here is a summary:
• Estates worth less than £50,000 will pay nothing, meaning estates worth between £5,000 and £50,000 will save £215 compared to the current system.
• Estates worth from £50,000 up to £300,000 will pay £250, a rise of £35.
• Estates worth from £300,000 up to £500,000 will pay £750, a rise of £535.
• Estates worth from £500,000 up to £1 million will pay £2,500, a rise of £2,285.
• Estates worth from £1 million up to £1.6 million will pay £4,000, a rise of £3,785.
• Estates worth from £1.6 million up to £2 million will pay £5,000, a rise of £4,785.
• Estates worth more than £2 million will pay £6,000, a rise of £5,785.
Without a grant of probate, institutions will not release assets to the administrators of the estate (unless below the minimum), so it will have to be obtained.
Despite comments to the contrary by the Ministry of Justice, it is effectively an additional tax on wealth as larger estates are not necessarily more complicated than smaller estates so they should not be having to pay more when Inheritance Tax is already in place as a tax on wealth.
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