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Implications of Serious Probate Registry Delays
6 June, 2019 4 minutes reading time
In early 2019, the government launched a new £1 billion online probate service designed to simplify the process and ease the burden on grieving families. However, the system has experienced significant problems, leading to serious delays and financial uncertainty for those affected. Reports indicate waits of up to six weeks just to receive an IHT421 from HMRC, and another five to twelve weeks for the Probate Registry to issue a grant of representation. This process, which used to take two to six weeks, now often takes five to eighteen weeks. By early May, a backlog of 30,000 to 35,000 applications had been reported. This well-intentioned initiative appears to have backfired, creating more problems than it solved. So, what went wrong?
Causes of the Delay
Several smaller issues seem to have created the ‘perfect storm’:
1. IT issues
Perhaps the most obvious is that the new system’s implementation hasn’t gone smoothly. The HM Courts and Tribunals Service has stated that glitches in the system significantly cause the delays.
2. Future rise in probate fees
There has been a rush of probate grant applications before a rise in probate fees comes into play later this year. The sudden increase in applications has put a system struggling under more strain.
3. Changes to the probate registry
It has been announced that probate registries will be centralised in Birmingham next year. This only leaves an administrative office in Stoke on Trent. The new computer system, centralisation, and staff reductions have inevitably led to fewer civil servants working on probate issues. This removes a significant amount of expertise from the role. Civil servants manage applications manually, looking for fakes and alterations and ensuring that Wills meet legal requirements. This skill will be lost as the new systems come into play. This is likely to add further delay.
Effect of the Delay
It’s fair to say the effect has been significant. The impact on legal professionals and beneficiaries includes:
1. Financial limbo
Massive delays leave bereaved families in limbo. They cannot do anything with the property and assets of the estate and have little or no information about what is happening. Naturally, this increases stress and anxiety at what is already a difficult time.
2. Property sales
The sale of a property cannot progress until a grant of representation has been received. Property sales are often relied upon to meet the demands of inheritance tax liability (IHT). Failure to pay in the allotted time can lead to interest penalties of up to 100% of the tax due in the most extreme cases.
3. Outstanding debts
Estate funds cannot be accessed until the grant of representation has been issued. Long delays leave creditors waiting for payment, stressing families even more.
What is being done?
The government is addressing these problems. STEP, an inheritance planning charity, recently met with HMCTS to discuss the delays. Expressing concern about the system’s implementation and its inability to handle increased applications, STEP offered several recommendations. These included changing the fee implementation date to the date of death and setting a firm date for fee increases. Furthermore, STEP also provided feedback on errors in the new grant forms.
HMCTS has responded by adding 15-20 staff members to the national office, a 10-15% increase, to tackle the backlog. This seems to be helping; they recently issued 960 grants in one day. Applications are being processed chronologically, the oldest first. The Probate Registry has also promised regular updates to inform the public of progress.
Conclusion
Streamlined systems can save time and improve processes when they function correctly. However, HMCTS has acknowledged that launching the new online system alongside other changes was a mistake. Only time will tell if this digital system will ultimately be beneficial.
Until then, personal representatives and lawyers must keep everyone informed. If you’ve been affected by probate registry delays, or if you need advice or more information, please contact us. We’re here to help.
Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.