New legislation has been put before Parliament which would implement a new, banded structure of fees instead of the current flat fee.
Under the proposal fees have been revised to rise to up to 0.5% of the value of the estate. The estate value threshold would rise from £5,000 to £50,000, while 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.
Matthew Lagden, CEO Institute of Legacy Management, has asked if consideration could be given to introducing a rebate or exemption from the increased fees for charitable estate which he said would cost the Government relativley little and would improve the attractiveness of this form of giving.
Director of Remember A Charity, Rob Cope, also commented, saying:
“The new probate structure will see charitable wills costing – in some cases – thousands of pounds more than they do currently and our concern is that this could deter people from leaving a donation in their will. While Government expects to generate £185 million from the increased charges by 2022-2023, it is important to remember that charitable bequests are worth almost £3 billion a year for good causes. The sector cannot afford to risk losing legacy income. We will be urging Government to offer a reduction in probate fees for estates that include a charitable gift, helping to mitigate the impact of the fee increase.”
source ukfundraising 28.11.18