Firms that do probate work should investigate the funding options available, says Nick Sanders
With the onset of the Legal Services Bill and greater competition in the market, how will firms that do probate work compete in the new marketplace? Firms will have to look at their financial structure and specifically how they fund probate cases.
The number of estates in the UK paying inheritance tax rose by 72% in the five years up to 2004 and is forecast to increase by a further 22% in 2007. While the threshold for inheritance tax has risen by 85% since 1996, the housing market has grown by 179% in the same period and you would be mistaken to think that only the super-rich pay inheritance tax. Around 40,000 estates are expected to be liable to pay inheritance tax in 2007, amounting to £4bn in tax revenues for the government.
Any inheritance tax due has to be paid before probate (or confirmation) is granted. This means that the tax has to be paid before the assets can be released and certain assets of the deceased estate can
