This year has provided a lot of challenges and changes, both in general and within the probate and estate administration industry. This blog will summarise some of the key industry stories and updates that have been in the news in 2022.
For all deaths on or after 1 January 2022, an amendment was made under The Inheritance Tax (Delivery of Accounts) (Excepted Estates) (Amendment) Regulations 2021. The aim was to reduce the number of Inheritance Tax (IHT) application forms submitted when obtaining a Grant of Probate. However, the reporting requirement for gross and net values remains unchanged. Therefore, assets and liabilities still need to be accurately reported for their date of death values as part of the probate application.
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Low value excepted estates |
Increased limit on assets placed into a single Trust from £150,000 to £250,000 |
Increased chargeable transfers made prior to death from £150,000 to £250,000 |
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Exempt excepted estates |
Increased gross estate from £1m to £3m |
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Foreign domiciliary |
There are no changes for excepted estates where the deceased was not domiciled in the UK. The regulation has, however, clarified that an estate will not be an excepted estate if the deceased made chargeable gifts within 7 years of the date of death (unless the gifts were £3,000 or less per year) |
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Transferable Nil Rate Band (TNRB) |
The estate qualifies as a ‘low value excepted estate’ if the gross value of the estate is at or below the NRB/TNRB available |
The estate qualifies as an ‘exempt excepted estate’ if the gross value of the estate is not more than £3m, and the net qualifying value of the estate is at or below the NRB/TNRB |
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The prescribed period |
The period in which qualifying excepted estates are discharged from an IHT liability has been increased from |
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Read more about IHT reporting for excepted estates.
In January 2022, The Ministry of Justice (MoJ) announced that all users of the probate service would now pay a single, flat rate fee. This came into place on 26 January 2022, and fees increased to £273 on applications submitted by both laypersons and professionals. Previously, the fees were £155 for professional applicants and £215 for non-professional applicants.
However, there is no fee payable for estates with a value of £5,000 or less; the £273 fee is only applicable to those estates which are over £5,000.
Read our blog and share it with your clients: can probate fees be paid from the estate?
Due to COVID-19 and the period of isolation, an adjustment to the Wills Act 1837 permitted for Wills to be witnessed via video technology, such as Zoom or Skype. This was originally due to end on 31 January 2022; however, the MoJ deemed it necessary for this to remain in place, as many continued to self-isolate. On 11 January 2022, the legislation was extended until 31 January 2024. However, this is subject to review by the Law Commission, who will decide whether to make more permanent changes.
Legal professionals and families administering a loved one’s estate continue to face delays with Grant of Probate applications in England and Wales. The Law Society has summarised updates from HMCTS throughout the year. See below a breakdown of these updates, which shows the average time taken from application submission to Grant issue:
| December 2021 | January 2022 | May 2022 | September 2022 | |
| Digital applications with stops | 15.4 weeks | 15.8 weeks | 13.5 weeks | 15.2 weeks |
| Digital applications without stops | 3.9 weeks | 4.2 weeks | 4.1 weeks | 4.2 weeks |
| Paper applications with stops | 21.6 weeks | 21.5 weeks | 22.8 weeks | 27.3 weeks |
| Paper applications without stops | 8.4 weeks | 9.8 weeks | 8.9 weeks | 11.9 weeks |
According to data from HMCTS, the average total time taken from submission to Grant issue for all probate applications was 9.3 weeks in September 2022, representing the biggest delay seen since October 2021. Further delays can come about when there are issues with the application – this can be avoided by being aware of the common questions HMCTS may ask and including as much information as possible so that they do not need to come back with minor queries.
Read our blog about the common causes of stopped applications and how they can be avoided.
Here at Kings Court Trust, we have bi-monthly catchups with the registry to understand their current delays and targets. However, the delays we have been experiencing have been longer than those reported by HMCTS, with some paper applications taking over 16 weeks and digital applications taking up to 8 weeks.
Back in 2017, HMRC established the Trust Registration Service (TRS) – a digital platform that Trustees are required to use to fulfil their registration obligations for Trusts, detailing the settlor, Trustees, and beneficiaries. This reduces the risk of Trusts being used as vehicles for money laundering.
HMRC has now extended the TRS to include non-taxable express UK Trusts following the UK’s implementation of the EU’s 5th Money Laundering Directive (5MLD). The deadline for registration of non-taxable Trusts was 1 September 2022.
Most other Trusts also require registering, with the exception of those that have been appointed out to beneficiaries within two years of the death, meaning that the Trust no longer exists. Although Kings Court Trust is not able to register Trusts, we can advise on the process and recommend services from our business partners.
During the Autumn Statement in November 2022, Chancellor of the Exchequer Jeremy Hunt announced an extension of the Nil Rate Band (NRB) freeze until 2027-28. The NRB has been at its current level of £325,000 since 2009.
The freeze was originally in place until 2025-26; the extension will represent a near 20-year freeze on the current rate. However, the extension could raise half a billion pounds for the Treasury by maintaining the threshold at which IHT is paid.
Kings Court Trust’s 2022 business highlights include:
We look forward to working with you in 2023 to provide our expert, fixed-price, and award-winning probate and estate administration services to your clients.
Merry Christmas and a Happy New Year from the team at Kings Court Trust!
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