A Rise in Probate Fees Could Place an Additional Burden on Families

Families are encountering unwanted issues in the management of elderly relatives' financial affairs, while a government proposal could see a hike in probate fees.

The government is considering increasing the probate fees that have to be paid to activate a will. The fees are currently set at a flat rate of £215 for all estates worth at least £5,000, but ministers want to move to a tiered system, depending on the value of the estate. Meanwhile, the number of complaints relating to powers of attorney has more than doubled in the last five years, according to data obtained by the Daily Telegraph.

IBB's experienced solicitors are based in Chesham, Buckinghamshire, and have been supporting the community for generations. We are available to discuss your inheritance tax and estate planning issue. Call us today on 01494 790002 or email estatemanagement@ibblaw.co.uk. Alternatively please visit the wills, trusts and probate page for more information on how we can help you or complete our online form.

Financial Ombudsman Service rose from 71 in 2010 to 178 in 2015 – the highest number on record, according to a Freedom of Information request.

Retired teacher's 'nightmare' experience

Rachel Ellis, a retired teacher, was granted lasting power of attorney over both her parents’ accounts in 2014. She says that keeping on top of the different ways financial institutions deal with the situation is a “nightmare”.

Mrs Ellis wanted to close some accounts altogether but problems around direct debits and other instructions meant that accounts with five different banks were needed, each with their own rules for dealing with power of attorney. She discovered that each bank was different in its approach, and even staff within the same bank gave conflicting information and advice. “Their staff have a complete lack of understanding of how power of attorney works. They just seem to be learning as they go along,” Mrs Ellis said of one institution.

Financial institutions have a legal obligation to honour powers of attorney, but in practice many limit the remit of the attorney, for example by insisting that the attorney open a bank account with the same bank as the donor.

Looking after your loved ones when you've gone

Seven out of ten people die without having drawn up a will. Meanwhile, a living will provides an advance statement about the level of treatment you would like to receive in the event of a terminal illness or suffering serious disability.

Trusts can also safeguard against unexpected future events spoiling your final wishes. These legal agreements come in a number of forms and can help lower potential inheritance tax bills as well as give extra guarantees for loved ones that they will be looked after following your death.

A lasting power of attorney enables you to plan for when you may not have the ability to make your own decisions in life. It will enable loved ones to act in accordance with your best interests and wishes.

There are also several ways to protect an estate against inheritance tax, including taking out specialist life insurance, setting up a trust and giving money away.

Protecting your wealth

Drawing up a will is the best way to ensure that your wishes are carried out as you intended after you’ve gone. A will also protects your loved ones and family and minimises the financial worry during what is an upsetting and stressful time. At IBB Solicitors, our wills, trusts and probate solicitors are here to help you plan for your family’s future.

Contact IBB's experienced solicitors today to discuss your inheritance tax and estate planning issue. Call us today on 01494 790002 or email estatemanagement@ibblaw.co.uk. Alternatively please visit the wills, trusts and probate page for more information on how we can help you or complete our online form.