Amendments To Non-Contentious Probate Act Introduced This Week
The government has introduced new rules to the way probate works in the UK, with caution advised from experts at leading national law firm Irwin Mitchell Private Wealth.
Yesterday (27 November) new amendments to the Non-Contentious Probate Act came into force, having been approved by parliament earlier in the month.
The amendments are intended to bring the process into the digital age – something inheritance tax specialists are welcoming with caution. Some of the changes include personal applications can now be made online and standing searches can also be found online.
However, probate specialists at Irwin Mitchell Private Wealth are concerned that other changes introduced, such as a will no longer needing to be signed by a solicitor or probate practitioner, opens the probate process up to abuse and will put more pressure on the system.
Expert Opinion
“This week the government is introducing a number of rules for probate to make the process less reliant on solicitors. However, these relaxing of the rules are a cause for concern and confusion for all involved.
“When it comes to people going through the process of probate, something we’re seeing more of is people not understanding their obligations or what a ‘statement of truth’ actually means. Applications done without a professional will often miss out assets they did not know of or under declare assets. This is usually not intended maliciously but can create a real headache for those involved, create more expense and often has to be redone by a professional.” Kelly Greig - Partner
Tax experts at Irwin Mitchell Private Wealth are also concerned that greater freedom in the process for the public to take on their own administration will mean precious tax breaks are missed or misunderstood, creating more mistakes and slowing down the process.
“There’s also a real risk that people do not place any importance on wills and how they are administered, when actually they are one of the most difficult things we do. There are lots of ways to miss something when administering a will – for instance, the little-known Residence Nil Rate Band (RNRB) was not claimed in all matters where it was entitled, with just 3,000 estates claiming the relief last tax year out of 24,000 estates administered.
“The potential for fraud also massively increases under these new rules. Without a solicitor or probate professional signing the will we anticipate will disputes will rise in number claiming fraudulent activity has taken place, putting more strain on the already stretched judicial system.
“While there are benefits here – it’s a really positive move to be able to make a standing search online – the risks vastly outweigh them.”