The Society of Trust and Estate Practitioners (STEP) has recently reported that, along with most other parliamentary committees, the probate service inquiry conducted by the House of Commons justice select committee was disbanded at the dissolution of Parliament on 30 May 2024.
The committee chair wrote to the Parliamentary Under Secretary of State, Ministry of Justice to highlight its findings, in place of a full report.
The findings acknowledged that HM Courts and Tribunals Service (HMCTS) had 'tried to do too much too soon' when implementing the new digital probate portal but commented that the technology itself was not the cause of the delays.
It also recorded that the COVID-19 pandemic was not the root cause, although it created 'additional issues'. It did however state that the probate registry's problems have been caused by 'the failure to understand the magnitude of the centralisation and digitisation projects and a failure to appreciate the importance of an experienced and skilled workforce' and concluded that the Probate Registry had been 'overly ambitious' and made a mistake in not completing the reorganisation and centralisation of the registry before the digital portal project.
This failure led not only to the loss of experienced staff but also poor morale among the remaining staff. 'The failures were not caused by the pandemic, but by poor decision-making around the project to centralise the service and the announcements to increase [grant application] fees by up to 6000 per cent'.
The Probate Registry delays were found to have caused significant financial loss to third parties such as charities, local authorities and bereaved families. The number of dwellings exempt from council tax as a result of being left empty by a deceased person has risen by more than half since 2019.
The delay in obtaining a Grant of Probate means that there can be increased interest payments on unpaid inheritance tax not paid in full within 6 months from the date of death or on cash legacies not paid within 12 months from the date of death.
The delay also can have an impact on property transactions which can fall through while waiting for a grant and estates may be forced to hold on to unoccupied properties for longer. Insurance of empty properties can be more costly to obtain, and service charges and bills need to be paid whilst a property remains empty. Changing market conditions and falling house prices can also force a downward renegotiation of the sale price.
The lack of transparency from HMCTS around how long applications are taking means there is a discrepancy between how long individuals believe a grant of probate will take and practitioners’ experience and this can lead to distrust between clients and practitioners, as clients do not believe that probate can take so much longer than HMCTS guidance claims.
The findings urged HMCTS to release as much data to affected parties as quickly as possible to help them plan their finances and manage expectations.
STEP’s CEO gave evidence to the committee which echoed the view that HMCTS would benefit from engaging more with those on the frontline of the sector.
‘The inquiry process made clear just how significant the probate service delays have become, with our industry partners all sharing their experience with the lack of delivery from HMCTS’. ‘Sadly, clients are the worst affected by the inadequacies of the probate service. In many cases, these can be very vulnerable people.’
STEP will be urging the next parliament to reconvene this vital work.
How can Tozers help?
Tozers can help by providing expert legal advice and guidance to individuals and families who are experiencing delays and issues with the probate service.
