The Government announced in their recent ‘Tax Day’ that around 200,000 executors and beneficiaries of estates will no longer have to complete inheritance tax forms because of changes that they have made according to a recent report. This is set to simplify probate, as it will cut the red tape and reduce the paperwork people currently have to fill out.
The Current Rules for Probate
Probate is required in England and Wales when the deceased owns property. This includes houses, buildings, and land. When a bank or financial institution requests a Grant of Representation, this also requires probate. Usually, this happens when property goes over the threshold that the institution sets.
The financial institutions where the deceased had investments or bank accounts all have their own rules about when they require the document. This is regardless of their value, so sometimes there may be other reasons an institution asks for the document.
In England and Wales, if an Estate is worth more than £325,000 when a person dies, then they typically have to pay Inheritance Tax. Currently, the Inheritance Tax rate is 40% on anything above the threshold. If a person leaves more than 10% of the estate’s value to charity, then the rate may reduce to 36%.
In England and Wales, it can take up to a year to complete probate. This depends on the assets and if there is a valid Will. In most cases HMRC conduct a thorough review of the Inheritance Tax information the executor provides.
How the New Rules Simplify Probate
The new rules will simplify the time it takes to grant probate by reducing the amount of paperwork that the executor must fill in before the court issues the grant.
The Government confirmed: “Today’s update will also cut inheritance tax red tape for more than 200,000 estates every year, dramatically reducing the amount of paperwork many families fill out.
“Over 90 percent of non-tax paying states each year will no longer have to complete inheritance tax forms when probate or confirmation is required from January 1 2022.”
Under the Inheritance Act, you only have six months from the date they issue the Grant of Probate in which to contest a will. Beneficiaries who are making a claim have twelve months. There is no statutory time limit for probate disputes around fraud.
Only someone who has an interest in the will is legally able to dispute probate. This includes individuals who are:
- Official beneficiary.
- Have a promise from the testator they will receive the property.
- Somebody or some debt collector that the testator still owes money to.
- They can also be someone financially depending on the testator but left out of the will. Examples may include their unmarried partner or child.
How we can help
Here at The Inheritance experts we work with solicitors who have years of experience dealing with all manner of inheritance claims. This includes probate. Contact us today by filling in our contact form. Or call us on 01614138763 to speak to one of our friendly knowledgeable advisors.