16 January 2025
New analysis of Freedom of Information (FoI) data obtained from the Ministry of Justice by Quilter, the financial adviser and pension provider, has found that 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) which could further delay the grant of probate in many cases.
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.
Length of time taken to grant probate
|
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% |
According to the government, a grant of probate should usually be obtained within 16 weeks of submitting an application.
A grant of probate is a legal document that confirms the authority of the executor(s) named in a deceased person’s will to manage and distribute their estate according to the will’s terms. It is required in many cases to access the deceased’s assets, such as bank accounts, property, and investments.
Delays in obtaining a grant of probate can have several adverse effects:
- Financial strain: When probate is delayed, the deceased’s assets, including bank accounts, remain frozen, creating financial stress for beneficiaries.
- Property and asset management: Properties in the deceased’s name cannot be sold or properly managed without probate, leading to potential depreciation or disrepair.
- Investment risks: Delays prevent reallocation or management of investments, potentially resulting in financial losses.
- Tax liabilities: Late payment penalties or missed tax advantage deadlines can arise.
- Distribution delays: Beneficiaries may face financial or personal difficulties waiting for inheritance, exacerbating family tensions.
- Emotional stress: Prolonged uncertainty can add to the emotional strain during an already difficult time.
Jon Greer, head of retirement policy at Quilter says:
"Under the current set of rules, we are already witnessing huge delays in granting probate causing significant stress for grieving families. 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."
