A Parliamentary Committee voted to increase probate fees by a narrow margin of nine votes against eight this month. The change will now be put before the House of Commons for final approval, but barring a majority of objections it will be passed and come into force in April this year.Probate is usually needed to administer someone's estat...
Probate fees are set to increase subject to a Parliamentary Committee vote later this month. These fees are the cost associated with administering someone's estate after they have passed away.The role of a Personal Representative (PR) is to administer the estate of someone who has died, and although a PR derives their authority to act from the...
Not long after the Budget announcement, The Ministry of Justice has announced plans to increase the fees charged when making an application for probate. Probate is usually needed to administer someone's estate after they have passed away regardless of whether or not that person has a Will. The latest changesCurrently, the Court c...
Inheritance Tax (IHT) is charged at a rate of 40% on the value of an estate above the NRB after taking into account the value of any chargeable lifetime transfers and deducting any liabilities, reliefs and exemptions that apply.
The existing NRB is £325,000 and will remain frozen at this figure until 2020/21.
The Transferable NRB
Where an estate qualifies for spouse or civil partner exemption, the unused proportion of the NRB belonging to the spouse or civil partner that dies first can be transferred to the estate of the surviving spouse or civil partner so that the value of their estate up to £650,000 is exempt from IHT.
For deaths on or after 6 April 2017, the Additional Nil Rate Band will be available when a residence is passed on death to direct descendants. The ANRB will be in addition to the NRB, and any unused ANRB can be transferred to a surviving spouse or civil partner where the second death is on or after 6 April 2017.
The ANRB will be as follows:
£100,000 in 2017 to 2018, therefore creating a total tax free allowance of £850,000 on second death
£125,000 in 2018 to 2019 therefore creating a total tax free allowance of £900,000 on second death
£150,000 in 2019 to 2020 therefore creating a total tax free allowance of £950,000 on second death
£175,000 in 2020 to 2021 therefore creating a total tax free allowance of £1,000,000 on second death
The government has forecast that 63,000 estates will have an IHT liability by 2021. This is largely due to the expected increase in the value of houses. It is forecast that the additional IHT free band will reduce that figure to 37,000 estates.
Pinney Talfourd were pleased to recently participate in ‘Make a Will Fortnight’ in aid of Saint Francis Hospice.
The charitable scheme, which ran during two weeks in June, required the Private Client team to donate their time free of charge to write Wills for clients who in return made a charitable donation to the Hospice.
Matthew Edwards, Head of the Private Client department, commented on the success of the campaign: “It is estimated that 60% of adults have not made a Will so this charitable initiative gave the incentive many people needed to make a Will and in the process make a worthwhile charitable donation. We would like to thank all of our clients who participated and contributed so generously. ”
Saint Francis Hospice opened its doors over 30 years ago and is one of the largest adult hospices in the UK serving Havering, Brentwood, Barking, Dagenham, Redbridge and West Essex. As an independent charity, Saint Francis Hospice is reliant on voluntary donations and that is why campaigns like 'Make a Will Fortnight' are so important.
This year Saint Francis Hospice requires £7.3 million to enable them to continue their excellent work offering specialist care and support to individuals and their family. Please take a look at their website for more information www.sfh.org.uk