Imminent shake-up to death duties ================================= ![Imminent shake-up to death duties](https://vardags.com/images/pictures/_360/f6f355d9bae9815f2c174ff7d84885e0.jpeg)Planned shake-ups to death duties have been subject to criticism in the media this week. On the 24th of February, the Ministry of Justice (MOJ) confirmed its [reforms of the current regime of fixed fees](https://www.gov.uk/government/consultations/fee-proposals-for-grants-of-probate) for non-contentious probateapplications. The change coming in in May will see the largest estates hit by the maximum fee of £20,000. However the payment thresholds will rise from £5,000 to £50,000 lifting some 30,000 estates out of paying any fee. The fees will be payable before the estate is distributed to heirs, and death duties have to be paid before probate is granted. The fees will be subject to inheritance tax and can only be paid once the tax bill is settled. These proposals would raise around an additional £250 million a year for the courts. The changes echo the recent increases in fees the [family](https://vardags.com/family-law-news/selling-justice-uk-divorce-fees-soar)and civil courts as well as the introduction of fees for employment tribunal claims. By increasing the fees above costs, the Ministry of Justice have sought to make the courts a revenue raiser for the government. At present, a flat fee of between £150 and £250 applies for estates valued at more than £5,000. This figure is set to soar for larger estates. The flat-rate system will change to a tiered system linked to the value of the deceased's estate. Estates valued at more than £300,000 will face a fee of £1,000. For estates above £500,000 it is £4,000; then £8,000 for estates worth £1m climbing to the top fees at £20,000 for estates worth more than £2m. The fees have been criticized as a stealth tax which will hit people at a time when they will struggle to find upfront cash. [Commentators](https://www.theguardian.com/money/blog/2016/feb/27/inheritance-tax-probate-fees) have suggested that an increase in inheritance tax rates rather than probate fees would raise revenues in a fairer way. The fee rise will follow closely on the heels of the introduction of the family home allowance in April, which will hand families a tax free allowance on the main residence. The residence nil-rate band will relieve inheritance tax on family homes worth up to £1m if left to lineal descendants. Each individual currently has a maximum basic nil rate band amount of £325,000. Like this personal allowance, the family home allowance can be transferred to a surviving spouse or civil partner. "Ayesha Vardag - Britain's top divorce lawyer." ![The Huffington Post](https://vardags.com/images/logo/huffpost.png) "Ayesha Vardag - Woman of the Year"![GG2](https://vardags.com/images/logo/gg2-3.png) "Leading, Magic Circle law firm."Mr Justice Coleridge "A handful of firms dominate the so-called 'glamour' end of the market ... Vardags"The Times "One of the best divorce lawyers in the country"Marie Claire "Ayesha Vardag - 'diva of divorce' for the world's super rich" ![BBC](https://vardags.com/images/logo/bbc.png) "Dr Stephen Bence is a financial genius."Lewis Marks KC "Ayesha Vardag - the Queen of divorce"Daily Mail "Vardags brilliantly argued my case to a resounding victory"Pauline Chai (client) "Britain's top divorce lawyer" ![The Telegraph](https://vardags.com/images/logo/telegraph.png) More Wills & Trusts news ---------------------------- [Report suggests Lord Chancellor lacks authority to go ahead with 'stealth tax' probate fee hike](https://vardags.com/family-law/report-liz-truss-lacks-stealth-tax-probate-fees "Report suggests Lord Chancellor lacks authority to go ahead with 'stealth tax' probate fee hike") [Supreme Court unanimously allows charity appeals in Ilott v The Blue Cross and others](https://vardags.com/family-law/supreme-court-ilott-v-blue-cross-others "Supreme Court unanimously allows charity appeals in Ilott v The Blue Cross and others") [Imminent shake-up to death duties](https://vardags.com/family-law/death-duties "Imminent shake-up to death duties") [Lessons from literary inheritance disputes](https://vardags.com/family-law/inheritance-disputes-fiction "Lessons from literary inheritance disputes") [Unending care costs and lasting power of attorney](https://vardags.com/family-law/unending-care-costs-lasting-power-attorney "Unending care costs and lasting power of attorney") Articles by Thea Dunne ---------------------- [Iraqi MP proposes state-incentivised polygamy to help war widows](https://vardags.com/family-law/polygamy-iraqi-war-widows "Iraqi MP proposes state-incentivised polygamy to help war widows") [Nullity, and how to void a marriage to a fraudster](https://vardags.com/family-law/marriage-fraud-nullity "Nullity, and how to void a marriage to a fraudster") [Imminent shake-up to death duties](https://vardags.com/family-law/death-duties "Imminent shake-up to death duties") [Lessons from literary inheritance disputes](https://vardags.com/family-law/inheritance-disputes-fiction "Lessons from literary inheritance disputes") [New bills threaten no-fault divorce and common-law marriage in Oklahoma](https://vardags.com/family-law/incompatibility-bill-oklahoma "New bills threaten no-fault divorce and common-law marriage in Oklahoma")