4.1 • 650 Ratings
🗓️ 3 May 2017
⏱️ 6 minutes
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Plans to massively hike probate fees have been dropped, but was this due to the General Election or the government trying to distance itself from a move that saw a huge backlash? Simon Lambert, Rachel Rickard Straus and Georgie Frost discuss it on this excerpt from the This is Money podcast.
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0:00.0 | One that won't is a rise in probate fees to as much as £20,000. |
0:05.0 | So Simon, Rachel, let's head here first as I know both of you have written a fair bit about this. |
0:10.0 | Rachel, just remind us if you would, what was the plan here, why was this so contentious? |
0:14.0 | What would the U-turn on probate fees? |
0:17.0 | So probate fees are what families have to pay when someone passes away to sort of gain access to their estate and sort of sort of thing out. |
0:24.9 | At the moment, it's a flat fee, £215, which arguably just about covers the cost of all that admin. |
0:32.5 | The plan was to make probate fees dependent on the size of the estate. And so while some people might end |
0:41.4 | up not paying any at all, some people could pay up to £20,000, which is a fairly steep rise |
0:49.6 | from 215. It was contentious because, oh, so many different reasons. One, just the incredible leap. |
0:57.6 | Two, arguably, what is still called a fee you could really say is a tax on probate when it's not |
1:05.5 | covering the cost but actually making money. And thirdly, how are people going to pay it? |
1:11.2 | So you have to come up with this fee |
1:13.0 | before you have access to the estate. |
1:15.4 | So some people might end up suddenly with a bill for 20 grand |
1:19.4 | with no money to pay for it. |
1:21.4 | So what do they do? |
1:22.1 | Do they take out a loan? |
1:23.6 | Do they borrow it from someone else? |
1:25.9 | It's pretty difficult at a time when things are already pretty difficult. |
1:30.2 | It was contentious as well because the government ran a consultation on it |
1:36.1 | and they asked people what they thought. |
1:37.9 | And almost everyone said, we think this is a really bad idea, but it didn't matter. |
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