We have clients of our probate and will services in Anstey, Blaby, Braunstone, Glenfield,
Ratby, LE7, LE19 - indeed around all parts of Leicester.
Avoiding the Cost of Probate
Probate and estate administration can be a long and expensive process - can you do
anything to reduce or even avoid the costs and worry involved?
Avoiding the Cost of Probate
To avoid your family having to obtain probate on your estate you have to do something
before you pass away (if you are already dealing with an estate as an executor then
you need to read our probate page rather than this page). The need for probate is
controlled by the details of your estate - by the size and nature of assets when
you pass away. For example, if you are the sole owner of a property then on your
death your executors will always need to obtain a Grant of Probate.
Hence, it should come as no surprise that to avoid probate you have to ensure that
when you pass away there is very little held in just your name. However, simply giving
everything to family and friends during your lifetime is NOT a good idea - if a family
member dies before you, or they get into debt problems themselves or perhaps there
is just an old-fashioned family argument you can quickly find that you have nowhere
to live and/or no savings to fall back on. What’s more, you may be increasing you
family’s tax bills.
The much better idea is to put your house and your major savings into a lifetime
trust, such as a lifetime Family Trust - with you as the main beneficiary. It is
vital that the trust is created correctly and then administered properly. That way
you can be confident that the trust acts in your best interests and protects your
standard of living. Then, when you pass away, the trust can give assets to your family,
friends or charities quickly and easily as you have decided - all without the delays,
major cost and aggravation of applying for a Grant of Probate.
As with any legal matter, these trusts need to be assessed carefully to ensure that
they are suitable for your personal situation. You also need to be wary of any offering
that simply creates the trust for you and then leaves the family to run it for themselves
- it can be all too easy to trip up and undo all the good that was intended. That’s
why we would strongly encourage you to speak to InHouse in person, so that we can
explain things as simply as possible whilst ensuring that you understand all the
details of what is involved - so do please get in touch.
Of course, if you want to do this it is no good putting it off - the sooner it is
done the sooner you can be confident that everything is in place. And what’s more,
there can additional unexpected side benefits - talk to us for details.
Proposed Costs for Grant of Probate
Currently the official court fee for a family applying for probate is £215, but in
November 2018 the Government announced increases to take effect from April 2019.
The proposed fees will vary according to the size of the estate passing by your Will.
Here are the expected fees:
Estate up to £50,000 - no fee
Estate £50,000 to £300,000 - fee of £250
Estate £300,000 to £500,000 - fee of £750
Estate £500,000 to £ 1 million - fee of £2,500
Estate £1 million to £1.6 million - fee of £4,000
Estate £1.6 million to £ 2 million - fee of £5,000
Estate over £2 million - fee of £6,000
But here is the good news:- if during your lifetime you had placed major assets into
a lifetime trust your estate will be much smaller and therefore expected to escape
with a lower probate fee.
Note The cost of any professional help for probate and estate administration is entirely
separate to these official fees. The details are important, so contact us to discuss
your own circumstances.