Rogers & Norton News
The Government published a consultation on the 18th February 2016 and invited responses by the 1st April 2016 in relation to proposals to increase the court fees for obtaining a Grant of Administration.
The current fee for obtaining a grant of representation is relatively modest at £155 if obtained through a solicitor or £215 if obtained individually. Those estates which are worth under £5000 are currently exempt from paying the fee. Many estates require a grant of representation to allow the personal representatives to administer the estate by gathering in the assets and also enabling them to sell the property.
The Ministry of Justice is proposing changes to the court fees which would mean that estates that are worth under £50,000 will no longer have to pay a court fee.
Estates that are worth between £50,000 and £300,000 will pay an increased fee of £300. The court fee will then rise progressively for estates worth between £300,000 and £2 million. Those estates worth over £2 million will be charged a court fee of £20,000 which is more than 129 times higher than the current fee.
Laura Rumsey comments that “the proposed fee structure will mean that low value estates valued at less than £50,000 will now be exempt from a court fee. However in our experience most estates that require a grant of representation will be valued at higher than £50,000 and for those estates the court fee is set to rise. This may cause problems for larger estates where the court fee will be significantly higher and personal representatives may find it difficult to pay the fee before they have access to liquid assets and may see personal representatives needing to take a loan for the court fee.”
If you would like any assistance in obtaining a grant of representation or advice in administering an estate please do not hesitate to contact the probate department on 01603 675631.