The number of probate cases taking more than a year has soared by 134 per cent since Covid, according to data from the Ministry of Justice.
This can leave families paying interest to HM Revenue & Customs (HMRC), which is currently charged at a rate of 7.25 per cent.
From April, HMRC will hike its interest fees on late payments to 8.75 per cent – an increase of 20.1 per cent and its highest level since 1992.
The year before, 10,103 people experienced delays. Although last year’s figure is significantly lower, there are fears that changes announced in the Autumn Budget may lead to a further increase in wait times.
Below, the table shows the number of people applying for probate and the length of time it has taken to grant it.
According to government estimates, this could mean that an additional 10,000 estates will be liable for IHT in the 2027/27 tax year.
“With pensions set to become part of the taxable estate from April 2027, the situation is only likely to worsen.
“This means legal personal representatives will face an even greater burden, consolidating information across multiple pension schemes.”
February interest rate cut a 'sure bet' after inflation and growth figures
Read MoreMeanwhile, over 130 cases took between 21 and 23 months, compared to 97 in 2022.
It is currently charged 2.5 percentage points above the Bank Rate, which is now 4.75 per cent. But from April, it will be 4 percentage points over. This could come down if the Bank cuts its base rate in February.
The average IHT bill was about £200,000 in 2024, according to estimates by the Office for Budget Responsibility (OBR).
Steve Webb, partner at pension consultants LCP, said: “It is already a hugely challenge job to sort out a loved one’s financial affairs after their death. Delays in granting probate add to the stress and this is set to get worse if government proposals go ahead to include pensions in the IHT net.
“It could easily become the norm that it is well over a year after someone’s death that their financial affairs are finally sorted out”.
“These delays are often attributed to increased application volumes, procedural inefficiencies, and likely gross understaffing within the Rrobate Registry.”
He added: “If there is a delay in obtaining probate it can mean executors cannot access the money to pay, therefore incurring these huge interest charges through no fault of their own.
“With enormous tax changes in April 2026 and April 2027 bringing many more estates into the IHT net it is vital that there are no more delays in obtaining probate.”
Read More Details
Finally We wish PressBee provided you with enough information of ( Bereaved families face costly inheritance tax penalties due to probate delays )
Also on site :