How HMCTS and HMRC are shaping the future of digital probate

In recent years, the probate process in England and Wales has undergone a digital transformation. With the introduction of online services by HMCTS (Her Majesty’s Courts and Tribunals Service) and HMRC’s efforts to streamline Inheritance Tax reporting, Executors and legal professionals have seen significant changes to the way estates are administered.

The digital transformation of probate services

Since January 2019, HMCTS has been developing and refining its online probate service. By November 2020, all Grant of Probate applications were required to be submitted online, with the Non-Contentious Probate (Amendment) Rules 2020 coming into force to support this transition. This digital shift aimed to create a more efficient and accessible system, reducing paperwork, and processing times.

In line with this, HMCTS has continued to enhance its online portal, gradually expanding the types of Grants that can be applied for digitally. Their ambition is to facilitate more intestacy estate applications online by the end of 2025. A major improvement has been the acceptance of digital signatures on all applications, which simplifies the process for Executors and legal representatives. This move has been widely welcomed as it eliminates the need for physical documents to be printed, signed, and posted, thereby reducing administrative burdens and speeding up application turnaround times.

HMRC’s mixed approach to digitalisation

HMRC has also introduced several digital efficiencies within the Inheritance Tax (IHT) process. A significant change came into effect on 1 January 2022, when the reporting requirements for estates below the IHT threshold were revised, leading to the removal of forms IHT205 and IHT217. Additionally, HMRC eliminated the need for a receipted IHT421 to be sent back to the Executor or HMCTS when an IHT400 is completed. Instead, they now email a unique code directly to HMCTS, allowing the probate process to proceed without unnecessary delays.

Printed signatures

While these advancements demonstrate a push toward a fully digital future, inconsistencies remain. One such inconsistency lies in the requirement for signatures on IHT forms. Traditionally, all Legal Personal Representatives (LPRs) or Trustees were required to physically sign the IHT400 or IHT100 forms. However, an easement introduced during the COVID-19 pandemic continues to apply, allowing for some flexibility.

HMRC now accepts printed signatures on IHT400 and IHT100 forms when there is a professional agent acting, provided that:

• The names and other personal details of the LPRs or Trustees are shown on the declaration page; and
• The account includes a clear and unambiguous statement from the agent confirming that all LPRs or Trustees have seen the account and agreed to be bound by the declaration

HMRC suggests the following wording for this statement:

• seen the Inheritance Tax Account, and
• agreed to be bound by the declaration on (page 14 of the IHT400) or (page 8 of the IHT100)."

Moving forward: A fully digital future?

The strides made by HMCTS in digitising the probate process are commendable, with their acceptance of digital signatures and online applications setting a new standard for efficiency. However, for a truly seamless experience, HMRC must align its practices with this digital approach. The insistence on wet signatures contradicts the broader movement toward digitalisation and creates unnecessary hurdles for those handling estate administration.

The continued acceptance of printed signatures under specific conditions is a step in the right direction, but more uniform adoption of digital processes is needed. As we look ahead to the future, it remains to be seen whether HMRC will fully embrace digital processes or continue to impose outdated requirements.

For now, those navigating the process must remain adaptable - leveraging digital advancements where possible while still contending with traditional paperwork requirements. As developments unfold, keeping up to date with changes in probate and Inheritance Tax procedures will be crucial to ensuring estates are handled as efficiently as possible.

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