The new £526 bill hitting grieving Brits – and 5 money moves to help | Personal Finance | Finance

Coping with the loss of a loved one is hard enough without having to pay a premium to sort out their financial affairs. Alas, the Ministry of Justice cares very little. As of Monday (July 13), it increased the cost of applying for probate in England and Wales by a staggering 75%, raising the fee from £300 to £526.

The MoJ said the hike will fund service improvements and help with inflationary pressures, but it means the fee has nearly doubled since May 2024, when it was just £273. A small win is that it’s cutting the cost of extra official copies of the probate document from £16 to £2 – how generous.

Not everyone has to jump through the costly hoop. Probate is only required if you die owning property, investments or bank accounts solely in your own name. The eligible person who applies and is granted probate will then be able to administer and distribute your estate.

You won’t need probate if everything you own is held jointly with a spouse or civil partner, or your estate is under £5,000. Banks can set their own thresholds, however, and some release up to £50,000 without probate. It’s best to check in with the relevant bank first before making any moves.

If the fee can’t be avoided and loved ones have to apply for probate, there are ways to make the process that follows much simpler for them. The first of a few tips sourced from experts at wealth management firm AJ Bell is to write a will. Worryingly, more than half of UK adults don’t have one. Without it, strict intestacy rules will dictate who gets what. Secondly, consolidate your finances where appropriate. We all collect stray bank accounts, workplace pensions, or forgotten investments. Run a search for them on tracing services if you’re unsure what you have, and bring them together if sensible to do so. For every closed account, there is one less company your grieving executor has to track down.

The team at AJ Bell suggest drawing up a “register of assets” as you go along, listing out all of your financial arrangements. This will make this part even easier for the bereaved.

Draft a letter of wishes to sit alongside your will, where you can provide more specific requests, and don’t forget your pension. Pensions aren’t usually covered by the will. To make sure this lands in the person’s hands of your choice, you must fill out an “expression of wish” form. This is essentially a note to your pension provider telling them who will inherit it. It’s not legally binding, but it’s usually followed to a T.

If you need more help, contact Citizens Advice on 0808 223 1133 or the HMRC Probate and Inheritance Tax Helpline on 0300 303 0648.

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Another important financial change that took effect this week saw new rules introduced for Buy Now, Pay Later (BNPL) schemes. For years now, shoppers have been running up huge debts using these interest-free, split-payment services through the likes of Klarna and Clearpay. Following an intervention by the Financial Conduct Authority (FCA), the sector came under formal regulation yesterday (Wednesday, July 15). This means lenders must be authorised and adhere to strict Consumer Duty rules.

Crucially, firms must now run proportionate affordability checks to ensure you can actually pay them back. They must also provide crystal-clear up-front information about payment dates, amounts, and late penalties.

If you find yourself in financial difficulty, providers are legally required to offer support and direct you to free debt advice. And if a firm treats you unfairly, you can now escalate complaints to the Financial Ombudsman. These agreements can now, however, be reported to credit reference agencies. This means that, while paying on time might help your score, missed payments could severely dent your ability to secure a loan or credit card in the future.