Families are encountering a challenging situation following the passing of a loved one due to inefficiencies at HMRC, resulting in prolonged waits for their rightful inheritances. The process of acquiring probate, the legal document granting an individual the authority to manage and distribute an estate, has become lengthy and burdensome, leaving many families waiting for extended periods to access what is rightfully theirs.
The financial strain imposed on these families is significant, as they are unable to access the deceased’s assets until probate has been granted. This has led to families needing to borrow money for daily living expenses, as bank accounts remain frozen during the protracted waiting period. In addition, families are obligated to pay inheritance tax within six months of death, despite any delays caused by HMRC.
As per data obtained from the Ministry of Justice by wealth manager Quilter, the number of families waiting more than a year for probate has substantially increased over the past three years. The wait time for probate has risen by two-thirds, placing families in a state of financial uncertainty.
Shaun Moore, a tax and financial planning expert at Quilter, has emphasized the emotional toll that these delays pose on families who are already dealing with grief. The wait times for probate have risen universally, raising serious concerns for families as they struggle to access their rightful inheritances.
The delays in obtaining probate have caused financial stress for many families, especially concerning frozen bank accounts. This prevents beneficiaries from covering essential living expenses, such as utility bills, mortgage repayments, and insurance policies. Furthermore, properties and investments cannot be managed or sold until probate has been granted, causing additional financial strain.
The consequences of these delays are significant, potentially leading to strained family relationships, disputes over inheritances, and additional legal costs. Moore has emphasized the importance of preparing crucial documents and organizing one’s estate in advance to alleviate these challenges.
He has advised families to consider establishing trusts, making lifetime gifts to loved ones, and seeking independent financial and tax planning advice to streamline the probate process. These measures can help to alleviate the financial burdens and emotional strain that families face as they navigate the complexities of inheritance.
As the struggle to obtain inheritances becomes increasingly prevalent, it is essential for families to be proactive in preparing their estates and seeking the necessary guidance to ensure a smoother transition of assets. By taking these steps, families can mitigate the financial and emotional challenges associated with probate delays and secure their rightful inheritances.