Probate Fee Soars by 75%
The Ministry of Justice increased the probate application fee in England and Wales from £300 to £526 on Monday, July 13, a staggering 75% rise. This marks nearly a doubling since May 2024, when the fee stood at £273. The MoJ stated the hike funds service improvements and addresses inflationary pressures. However, it also reduced the cost of extra official copies of the probate document from £16 to £2.
Who Needs Probate?
Probate is required only if a person dies owning property, investments, or bank accounts solely in their name. The granted executor can then administer the estate. Probate is unnecessary if assets are held jointly with a spouse or civil partner, or if the estate is under £5,000. Banks may set their own thresholds; some release up to £50,000 without probate. It is advisable to check with the relevant bank before applying.
Five Expert Tips to Ease the Burden
Wealth management firm AJ Bell offers five strategies to simplify the process for loved ones:
1. Write a Will
Over half of UK adults lack a will. Without one, strict intestacy rules determine asset distribution. A will ensures your wishes are followed.
2. Consolidate Finances
Collect stray bank accounts, workplace pensions, and forgotten investments. Use tracing services if needed, and close unnecessary accounts to reduce the executor's workload.
3. Create a Register of Assets
Maintain a list of all financial arrangements, making it easier for the bereaved to track assets.
4. Draft a Letter of Wishes
Alongside your will, provide specific requests. Also, complete an “expression of wish” form for pensions, as they are not covered by the will. This tells your pension provider who should inherit the funds.
5. Seek Professional Help
Contact Citizens Advice at 0808 223 1133 or the HMRC Probate and Inheritance Tax Helpline at 0300 303 0648 for further assistance.
New BNPL Regulations Take Effect
Another financial change this week: Buy Now, Pay Later (BNPL) schemes from Klarna and Clearpay now face formal regulation by the Financial Conduct Authority (FCA) as of Wednesday, July 15. Lenders must be authorised, conduct affordability checks, provide clear information on payment dates and late penalties, and offer support for financial difficulty. Complaints can be escalated to the Financial Ombudsman. However, missed payments may now be reported to credit reference agencies, potentially damaging credit scores.
