People with wills can keep thousands more out of the clutches of the taxman and the banks ‐ and protect their families against inflation at the same time thanks to a unique pre-payment probate plan, to be launched on Tuesday November 10.
The Final Duties pre-payment probate plan fixed fees beforehand, preventing organisations charging three to four times the going rate for the work. The new plan will revolutionise the costs of probate – the legal process that distributes assets in a will ‐ and prevent families being held to ransom at a time of mourning.
Banks and some other firms can take advantage of the deceased’s family and friends being unlikely (or unable) to shop around for the best deal.
The ground-breaking fixed price probate plan, devised by Final Duties, the UK’s first and only probate broker, in partnership with Funeral Planning Services protects what is left in wills in three ways.
It beats the taxman. As the Final Duties plan is paid for before the death, the money has already been spent and can’t be counted for inheritance tax bills. Unlike funeral charges, probate fees (when incurred after death) cannot be deducted from the value of the estate.
It beats inflation. Once fixed and paid for, there will normally be no extra charges (see notes to editors) no matter how prices rise. Services such as legal work have tended to go up faster than overall inflation.
It beats the banks Final Duties’ specialises in shopping around for the best probate deal. So estates will generally pay a fraction of the fees banks and will-writing firms impose (see notes to editors for examples) ‐ the fixed price quoted will take these savings into account.
The Final Duties pre-payment plan can be taken out at any time although most will do this after retirement. The fees will be held by an independent trust which guarantees that the services will be provided when needed. There will be no additional charges unless the estate becomes substantially more complex.
“Every year, over 100,000 people now fix funeral costs with pre-payment plans. This gives substantial comfort to their families who know there will be no need to find funds at a time of grief but is also a guarantee against price inflation. Now, the Final Duties pre-payment probate plan means families will preserve more of the estate, paying less and keeping the fees out of the Inheritance Tax net while also protecting the estate against legal costs inflation,” says Adam Walker, managing director of Final Duties, the first ever probate broker.
“We can generally quote probate fees at a fraction of the 4% of the value of the estate (plus VAT) banks and many will-writers typically demand. But because pre-payment avoids Inheritance Tax, the real savings are even greater – a £5,000 pre-payment plan is effectively £3,000 once the tax saving is counted. Consumers should be wary if legal, financial and other advisers don’t offer pre-payment probate as an option,” Walker adds.