"Probate will become largely automated, not quite as simple as paying for your car tax but nevertheless all online, and currently costs £40m to run. This drastic increase in fees is expected to raise £150m to pay for running the MoJ. As the new fees are effectively a tax on wealth, they should be subject to the right scrutiny, like any other tax."
Alan Chan, director at IFS Wealth & Pensions, said: "It is absurd and is just another tax on the deceased’s family members, hitting them hardest at the most difficult time of their lives. Inheritance tax of 40 per cent is already quite high, and now individuals also need to factor in potentially significant probate fees too.
"For most people living in London, properties values alone will take them into the higher brackets of probate fees. Even if costs have gone up, it’s hard to justify a near 20-fold increase in probate fees overnight."
Ms Ingram warned unless the executor of a will obtains a Grant of Probate, assets of the estate cannot be accessed, which means they are effectively frozen at the time of death.
"Without ready cash to pay these fees, many will be unable to access their inheritance until they can raise funds. This could mean families failing to collect savings owed to them or taking on debt to do so," she said.
Ms Ingram said clients should take certain steps to safeguard their families from the worst impacts of the 'new tax'.
These include:
- Reviewing life policies to ensure they provide adequate funds for dependents and are written in trust;
- Updating pension plans as these too do not form part of the estate and can be left to family members outside of the estate, thereby circumventing both probate and inheritance tax;
- Ensuring there are adequate funds in joint bank accounts or that each adult has access to cash savings of their own, to cover 6 to 12 months’ spending;
- For younger families, under state retirement age, making a claim for State Bereavement Support at the earliest opportunity.
Kusal Ariyawansa, chartered financial planner at Manchester-based Appleton Gerrard, said: "As a percentage of the estate these additional charges can be deemed insignificant. It is yet another tax, meaning it should come off the final IHT bill, if there is one. There is no surprise that IHT is the most detested tax and its reform (abolition) is long overdue. It is nothing but a jealousy tax."
A spokeswoman at the MoJ said: "The new probate fees scheme is intended to ensure that those of limited financial means are not prevented from bringing proceedings in court because they cannot afford to pay the fee. For those who qualify for help under the scheme, the fee may be reduced or waived in full."
