When the word ‘probate’ is mentioned it can cause confusion and fear, mainly towards any fees. Already an emotional time, the issue of probate on a loved one’s estate can make a difficult situation much worse. One of the main issues when it comes to probate is who has to pay the bill. And when.
Probate of a Will
When someone dies, a grant of probate needs to be issued by the Probate Registry. This document offers proof that the executors are entitled to deal with the estate of the deceased. Until probate is issue, executors shouldn’t really do anything – just in case there are delays or unforeseen issues. However, in order to apply for probate, the executor must complete an inheritance tax return, and pay what is owed. They must also submit an application to the Probate Registry and pay the fee there. This is currently £215 for personal applications.
Soon, however, this charge will be changing, and in May 2017 the fees will instead be linked to the value of the estate. Estates worth less than £50,000 will not have any fee to pay. Whatever the cost, the problem for most people is that it is due before the executors are able to have any access to the assets belonging to the deceased person.
Currently, executors need to pay the probate fees themselves and then recover them from the estate once probate has been granted. This of course can cause financial problems in some cases, which is why some banks will offer special short term loans to cover this exact cost.
