The number of probate applications are increasing with data showing a 3 per cent rise each year since 2020, analysis by Final Duties has revealed.
The analysis found that in Q3 2023 78,810 applications were completed per quarter for the year, with Final Duties estimating the total number of applications could reach 307,760 in 2023, a 5 per cent increase on the total seen in 2022.
Final Duties offers fixed-fee probate services to those who need help dealing with the estate of a person who has died.
The analysis also revealed that the first three months of the year are traditionally the busiest time for new applications with the data showing 7 per cent more applications are made between January to March compared to the following nine months.
Jack Gill, managing director of Final Duties, said: “The thing that catches most people out is the complexity of the probate process. It is a long, arduous journey full of pitfalls which, if fallen foul of, can result in big delays, additional costs, and even a reduction in the final value of the estate.
“The result of this is little transparency when it comes to the probate solicitor’s fees - solicitors tend to charge per day, or per hour, so the longer the process takes, the more they’re going to charge.”
Backlog of applications
While the number of applications have increased Alexander Morgan, legal director at BDB Pitmans, pointed out there is currently a delay in the number of grants being issued.
He said: “Unfortunately, there have been increased delays in the probate service with latest figures suggesting an average wait time of 15.2 weeks from point of submission to a grant issuing, which is significantly higher than the 9.3 weeks average for the same month in the previous year.
“The delays can cause concern and uncertainty for families, as valuable assets in an estate may be inaccessible until the grant issues, whilst the costs of maintenance and interest charged by HMRC on unpaid inheritance tax continue to accrue.
“We have also seen strong fluctuations in markets, which can lead to the frustration of sales and renegotiations on price whilst personal representatives wait for the grant.”
Ian Bond, lifestyle and estates planning partner at Irwin Mitchell, explained the backlog was due to a number of factors, one of which being the increased death rate.
He added: “The number of grants issued by the Probate Registry is below the number of applications received creating a backlog of over 40,000 cases.
“2023 saw an increase in resources for the probate service and will likely see a record number of grants being issued in the year when the final figures are published. We welcome the fact that by the end of 2023 more grants are now being issued than applications received, and the backlog is slowly being reduced.”
In July 2023 the Competitions and Markets Authority announced it would be launching an investigation following concerns about unregulated pre-paid probate services.
The concerns included:
- pressure selling techniques being used on elderly and other vulnerable people
- lack of transparency about what costs are covered
- plans that are unnecessary or fail to serve their purpose, leading to delays in the probate process and bereaved relatives being left unable to settle bills or sell property
- lack of customer awareness that their money may not be adequately protected, even if held in trust.
The investigation is ongoing.
alina.khan@ft.com
