‘People are tearing their hair out!’ warns Martin Lewis as grieving families hit with ‘death tax’ delay

MARTIN Lewis has warned over “rampant” delays to the UK’s “death tax” system and said grieving families are “tearing their hair out” with frustration.

The financial guru spoke to an expert lawyer to discuss how bereaved Brits can help speed up the process, known as “probate”, in the latest episode of his BBC 5 Live show, The Martin Lewis Podcast.

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Probate is the legal process of dealing with someone’s estate when they die, including distributing their property, money and possessions.

You must be granted probate by the high court in order to access these assets. Who can apply for probate depends on whether there is a will.

However, applicants applying for probate are facing major delays because of a huge backlog due to the pandemic and a push to bring the service online. 

“People are tearing their hair out, they have already lost somebody and they want to get on with their lives,” said Mr Lewis. 

According to the Government, someone should usually get the grant of probate within 16 weeks of submitting an application, although complex cases can take up to 25 weeks to complete.

But in recent years, applications are often taking far longer than this.

In the three years to April, the number of probate cases taking more than an entire year to be granted rose by 65%, according to a freedom of information (FOI) request by finance firm Quilter.

And it found a 112% rise in the number of cases taking over six months.

On this week’s episode, the founder of Money Saving Expert spoke to Kieran Bowe, partner at law firm Russell Cowe, to share tips on how to speed up the process.

Bowe said there has been a “real storm” within the probate registry, but there has been some improvement over the past few months. 

“That said there is a backlog in the system and grants are taking a long time,” he said. 

However, Mr Bowe said there are certain circumstances where you can get a grant much more quickly.

For example, he said this may happen where a property had already gone under offer before the time of death.

Another example he gave was in cases of extreme financial hardship. 

Mr Bowe added: “The key thing is getting your application into the court as swiftly as possible.

“[Also], managing expectations within the estate, particularly if there is a property to be sold.

“Also, taking steps – for example if there is inheritance tax to pay, pay as much as you can from liquid assets within the estate prior to the date of grant,” he added.

The warning comes months after mourning families were whacked with a 10% rise to the probate application cost. 

In May, the cost of applying for probate rose from £273 to a flat rate of £300 – as revealed by The Sun.

The fee is only payable if the person’s total assets are worth £5,000 or more – otherwise, there is no charge.

How can I apply for probate?

Who should apply for probate depends on whether there is a will.

If the person who died left a will, the executor named in the will can apply for probate.

If they do not leave a will, the closest living relative will be able to apply.

You can apply for probate online or by post. This can be cheaper than paying a solicitor to apply for you.

You must apply to HM Courts & Tribunals Service (HMCTS) to get probate, either by visiting www.gov.uk/applying-for-probate or by post.

Application fees for probate in England and Wales are £300, whether you apply through a solicitor or decide to do it yourself. 

You can order extra copies of the probate document for £1.50 each.

This means you can send them to different organisations at the same time.

Bear in mind that if there is an inheritance tax due on the estate – known as “death tax” – this will usually have to be paid before probate is granted.

However, only a fraction of households have to pay inheritance tax.

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