The number of probate cases taking over a year to be granted has risen by 134% over the last three years.
This increase in wait time comes as the government prepares to make pensions liable to inheritance tax (IHT), a move which could further delay the grant of probate in many cases.
Inheritance tax changes in last October’s Budget have already been heavily criticised, with farmers demanding that Chancellor Rachel Reeves rethinks her plans to limit inheritance tax relief to £1m.
The number of probate cases taking between 21 and 23 months to be granted has risen by 132%, highlighting the ongoing strain on the probate process even before pension wealth becomes part of the process in April 2027.
The shocking statistics were obtained by a Freedom of Information (FoI) inquest to the Ministry of Justice.
Quilter, the financial adviser and pension provider which made the FoI request, pointed out that according to the government, a grant of probate should usually be obtained within 16 weeks of submitting an application.
The grant is a legal document that allows named loved ones to act when someone dies and allows them to access the deceased’ person’s assets, such as bank accounts, property, and investments.
Quilter said that, without the grant, bank accounts remain frozen, creating financial stress for beneficiaries.
There were also investment risks, and the probate delays could prevent the reallocation or management of investments, potentially resulting in financial losses. It could also result in late payment penalties or missed tax advantage deadlines.
Beneficiaries may face financial or personal difficulties waiting for inheritance, exacerbating family tensions while uncertainty can add to the emotional strain during an already difficult time.
Jon Greer, head of retirement policy at Quilter said there were already huge delays in granting probate causing significant stress for grieving families.
He said: “With pensions set to become part of the taxable estate from April 2027, the situation is only likely to worsen. Pension schemes often remain unaware of a member’s death immediately, delaying legal and tax processes. This means legal personal representatives will face an even greater burden, consolidating information across multiple pension schemes.
“These delays and added responsibilities compound an already difficult situation. Executors, often close kin or friends, will need to input detailed information, adding complexity to an already time-intensive task. Pension schemes will have to decide whether to continue with discretionary processes for identifying beneficiaries, which can add significant time.
“Moreover, delays may cost families significantly. HMRC proposes charging interest on IHT owed after six months following death, currently at 7.25%. Interest will likely be charged on IHT due from schemes even where delays are not caused by them, quickly mounting up.
“To mitigate these issues, it’s crucial to organise your estate in advance. Utilising trusts and making lifetime gifts can help reduce the complexity and potential tax liabilities. Engaging a financial adviser and having a will in place can also ease the process for executors.”
A Ministry of Justice spokesperson said most probate applications were being granted within eight weeks and it was working to reduce waiting times for applicants.
They said: “This includes training our staff to deliver further improvements which has resulted in record numbers of grants being issued in recent months.”
|
Year |
Over 6 months |
Over 9 months |
Over a year |
Over a year and a half |
Between 21-23 months |
|
2020 |
3,267 |
1,670 |
587 |
122 |
57 |
|
2021 |
5,332 |
2,584 |
891 |
230 |
113 |
|
2022 |
5,067 |
2,681 |
930 |
205 |
97 |
|
2023 |
10,103 |
4,392 |
1,371 |
259 |
132 |
|
2024 (Jan-Mar) |
2,722 |
1,425 |
490 |
124 |
65 |
|
Percentage change (2020-2023) |
209% |
163% |
134% |
112% |
132% |
Have you been affected by a probate delay? Contact samantha.downes@reachplc.com