Call For Government to Rethink Probate Fee Hike
15th March 2017
The Institute for Family Business (IFB) has called on the Government to rethink its decision to press ahead with large rises in probate fees and a move to a new tiered fee system, a decision which has been widely opposed.
IFB Executive Director Elizabeth Bagger said:
"This new system presumes that estates will have access to significant amounts of cash. This is often not the case, especially when a family business owner dies and the bulk of their estate is made up of the shares in the family business.
"For example, a farming business may be land rich but have little access to cash. Or the entrepreneur who had spent years building a business and reinvesting all the profits to fund future growth.
"This new system could drive bereaved families to make decisions about the future ownership of a business their family may have owned for generations, solely in order to meet a short term need for cash to pay the fee. This would be to the detriment of the family, their employees and community.
"These new system will have a significant emotional and financial impact on family businesses, and we urge the Government to reconsider this move."