Parliamentary Under Secretary of State for Justice
QC MP, today provided the
following update on probate fees.
I have today laid before Parliament new legislation to implement
a new, banded structure of fees for a grant of representation,
commonly known as a grant of probate.
Fees are an essential element of funding an effective, modern
courts and tribunals service, thereby ensuring and protecting
access to justice.
The Government is investing £1 billion to modernise and upgrade
the courts system so that it works even better for everyone,
including victims, witnesses, litigants, judges and legal
professionals. This includes introducing changes to our Probate
Service, who offer an important service to those who are
bereaved.
The reform of the service allows people to apply for a grant of
probate online, access assisted digital support for those who
many not necessarily have the skills or access to engage
digitally and empowers individuals to make applications
themselves instead of needing to instruct and pay for solicitors.
This aims to reduce the burden on applicants, by providing a more
efficient and simpler application process.
But such a courts system is simply not possible without proper
funding. Since the previous Government set out its intentions to
introduce a banded fee structure for grants of probate in
February 2017, a number of concerns were raised. We have listened
to these very carefully, and under today’s proposal we have
revised fees so they will never be more than 0.5% of the value of
the estate.
Moreover, by raising the estate value threshold from £5,000 to
£50,000, we will be lifting around 25,000 estates annually out of
fees altogether. For those who do pay, around 80% of estates will
pay £750 or less, and all income raised will be spent on running
the courts and tribunal service.
It has long been the case that the users of our courts make a
contribution to its costs, and we believe this remains both
relevant and reasonable – minimising the burden on other
taxpayers. Crucially, by asking those who use the courts to pay
more, where they can afford to do so, we are able to fund areas
where we charge no fees to vulnerable victims and users,
including for example domestic violence and non-molestation
orders, and for cases before the First-tier Tribunal concerning
mental health.
This new banded fee model represents a fair and more progressive
way to pay for probate services compared to the current flat fee
and reflects our commitment to protecting access to justice by
ensuring we have a properly funded and resourced courts system.
We are also confident these fees will never be unaffordable. The
cost of the fee is recoverable from the estate and executors have
several options to fund it. Moreover, the Lord Chancellor retains
a power to remit a fee if he considers there are exceptional
circumstances.
We will also publish a guidance document before the Statutory
Instrument comes into force, entitled Guidance on Ways to Pay for
Probate Fees. This will benefit from external stakeholder input,
and will help applicants to choose the option to pay which most
suits their circumstances, providing reassurance at a difficult
time.