• March 28, 2024
 The Saga Is Over: Justice Secretary Withdraws Probate Fees Order

The Saga Is Over: Justice Secretary Withdraws Probate Fees Order

The saga of the Non-Contentious Probate Fees Order 2018 has finally drawn to a close after the Justice Secretary announced the immediate withdrawal of the proposals at the weekend.

The Order would have introduced probate fees on a sliding scale up to £6,000 depending on the value of the estate, replacing the current flat fee of £215 or £155 if a solicitor is used in the process.

Governmental opposition, many in the House of Lords, the Law Society and the charity sector dubbed the changes a ‘stealth death tax’ that would severely impact over 280,000 estates.

The proposals were also set to cause financial difficulties for thousands of already grieving families with 56,000 set to be dragged into paying onerous fees between £2,500 and £6,000.

Whilst the Ministry of Justice (MoJ) speculated that the fees would provide an additional £185 million to the courts service by 2022/3, the charity sector feared it would cost them around £10 million per year in lost legacy income.

After lobbying consistently since the Order’s introduction on 5 November 2018, many have welcomed the Justice Secretary’s response after claiming he had ‘listened very carefully to the strong views aired on probate fees.’

A wider review of court fees will now take place with a ‘fairer and proportionate’ alternative expected in the future.

 Robert Buckland, Justice Secretary, said:

“I have listened very carefully to the strong views aired on proposed new probate fees. While fees are necessary to properly fund our world-leading courts system, they must be fair and proportionate.

Simon Davis, Law Society president, said:

“We will withdraw these proposals and keep the current system while we take a closer look at these court fees as part of our annual wider review.”

“A hike in probate fees would have been a tax on grief.

“We campaigned vigorously against the increase on behalf of bereaved families and are relieved the government has listened to reason.

“It is inherently unfair to expect the bereaved to fund other parts of the courts and tribunal service when they have no other option but to apply for probate.

“In its review of court fees government should bear in mind that it is a false economy to impose charges that go beyond cost recovery. Equal access to justice is a fundamental part of the rule of law.”

Rob Cope, Director of Remember A Charity, commented:

“We’re hugely relieved to hear that there will be no major increase to probate fees and that that the current structure will be retained, at least for the time-being.

“Charities large and small rely heavily on gifts in Wills. Worth around £3 billion a year, we simply can’t afford to risk jeopardising such an important income stream or to reverse the trend for growth in legacy giving.

“We’ll continue to work closely with Government to ensure the sector’s views are heard and that the legacy environment is protected. This includes ensuring that concerns about the prolonged delays to probate are addressed and the sector keep informed.”

Institute of Legacy Management, CEO Matthew Lagden said:

“ILM has been campaigning against the rise for months, arguing that the fees would have a knock-on effect on charities as people might simply not apply for probate in order to avoid paying the fee, thus potentially passing the cost on to charities if they step in to act as administrator. We estimated that this might cost the sector £8m per year.

 

“We are very pleased that this proposal has now been axed, with only a very small increase to cover costs now expected to be introduced.”

How significant is the withdrawal of the Probate Fees Order?

Martin Parrin