Are you ready for the probate fee hike?
26th November, 2018
Those without life insurance policies written in trust will be facing increased costs when it comes to probate. The Ministry of Justice (MOJ) has confirmed the planned increase for England and Wales, by moving from a flat probate fee of £215 (£155 through a solicitor), to a tier-based system.
Probate is the legal and financial process that takes place once someone has died, calculating and assessing the deceased’s property, money and possessions. This new tier based system will likely mean that larger estates especially will face heavy costs when going through probate.
The MOJ has confirmed that although the new system will be based on the size of the estate, the fee will never amount to more than 0.5% of the estate’s value. But this could still amount to several thousand pounds, highlighting the importance of putting life insurance policies into trust.
By putting a policy into trust, beneficiaries will receive funds without going through probate. After the death of a loved one, it is important to know that all money matters, whether it is immediate fees, increased funeral costs, or other financial burdens, are covered.