The UK government has insisted it will press ahead with controversial plans to raise probate fees by up to £20,000, even after a parliamentary committee said the increases were unlawful.
A report by the joint committee on statutory instruments has suggested that the Ministry of Justice may not have the authority to introduce the charges of up to £20,000 per estate.
The MoJ has defended the charges on the grounds that its is “fair and proportionate” that those who can afford to use the courts should make a greater contribution to their overall funding.
The new probate fees, which range from nothing for estates valued at up to £50,000 to £20,000 for estates worth more than £2m, replace a previous flat rate of £215 if an application is made by an individual.
A leading solicitor has urged farmers to write to their MP rejecting government proposals which could see a 9,000% rise in ‘death fees’.
'Real hardship for farmers'
John-Paul Dennis, partner at Kirwans law firm says the Ministry of Justice’s plans to overhaul probate fees could leave bereaved individuals struggling to gain control of their loved ones’ assets and affairs.
John-Paul said: “This is just another form of death duty without any real justification. Like Inheritance Tax, it will need paying upfront, which means that those applying for probate could have to find thousands of pounds just to go through the process.
“I believe that this will result in real hardship for farmers, and find it hard to understand how a vulnerable surviving spouse is expected to fund these costs. If they are elderly, they are going to find it impossible to re-mortgage, and may have to undertake equity release just to get probate if their loved one’s estate is mainly comprised of property.”
The CLA is calling on Government to rethink their proposed changes.
CLA President Ross Murray has said: “The changes act essentially as another tax on death, and bear no relation to the cost of the service provided. The Ministry of Justice should feel ashamed about seeking to impose a back door tax on the bereaved, and this issue must now be subject to further parliamentary scrutiny.”
