Some individuals are facing the challenge of inheriting investment portfolios that have significantly decreased in value due to stock market volatility. For instance, Mr. Richards, a financial advisor, shared a story of a client who lost £1 million because probate delays forced them to sell their £3 million portfolio after the Ukraine war started, resulting in a steep decline in their investments.
The law firm JMW has highlighted that investment losses have become a major issue for bereaved families, particularly given recent stock market downturns. However, there is a silver lining as families can usually recoup the inheritance tax from HM Revenue and Customs when they sell the deceased’s investments at a loss.
Unfortunately, delays in the probate process are preventing families from claiming compensation within the critical time frame. HMRC only allows a 12-month window for families to claim loss relief on share price falls. The Association of Tax Technicians has urged the government to extend this window to 18 months or two years due to the delays.
Joe Cobb, a representative from JMW, expressed the challenges faced by some estates: “the delays at the probate registry can mean that the grant is not issued within a year of death, which means the shares cannot be sold in the requisite period, and the relief cannot be claimed.”
This situation is particularly frustrating for bereaved families, as former Conservative minister Ros Altmann points out. She emphasizes that court delays are costing families thousands of pounds when their loved one’s property sale falls through in a weakened market. Altmann hopes that the government will take action to expedite the process.
Natalie Payne, a representative from law firm Morr & Co, criticizes the system for penalizing families due to its internal flaws. She notes that this issue is occurring at a time when a significant drop in property prices is expected, further exacerbating the situation for families.
In response, a spokesman from HM Courts and Tribunals Service acknowledges the higher death rate since 2020, leading to a surge in probate applications. However, they assure that the average processing time is now seven weeks, which is one week faster than the previous year.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
