Information Gathering & Interest Headaches for Executors
The number of executors waiting over a year for a grant of probate more than doubled over the past three years, and that figure could increase significantly once pensions become liable to inheritance tax.
The Numbers
In 2023, 1,371 probate cases took more than a year, with 10,103 lasting more than six months. This was a significant increase from 2020, when the corresponding figures were 587 and 3,267 respectively. During the first three months of 2024, 2,722 cases had already been in progress for more than six months.
The statistics were sourced following a Freedom of Information request to the Ministry of Justice submitted by Quilters. Delays could get worse once new rules making pensions part of the taxable estate are implemented in 2027.
Do have a look at Quilters statement:
https://media.quilter.com/search/probate-delays-surge–a-134-rise-in-year-long-cases
The Pension Changes
With pensions lined up to become part of a deceased persons taxable estate from April 2027, the situation on probate delays is only likely to worsen as executors will have to locate and input potentially complex information regarding pensions onto the relevant IHT forms before probate applications can proceed to the next stage.
IHT paid after the six months following death will be charged interest of 7.25% from 6th November 2024.
Stephen Parnham
