The government recently published plans to increase court fees. The last increase was in April 2014 and now the March 2015 rise could see significant increases in some areas.
For example,
- Claims between £10,000 and £200,000 will incur a court fee of 5% of the amount claimed
- Claimants issuing through Secure Data Transfer (SDT) or Money Claims Online (MCOL) will be eligible for a small discount on the court fee incurred
- Claims over £200,000 will attract a fixed court fee of £10,000
Source: The Law Society
Do you feel such increases are fair and proportionate for each sector?
Do you deem the anticipated increases having a significant impact in terms of the number of contested probate claims made in future?
How do you think this could affect the claims you undertake on behalf of your clients? You may have fears, or perhaps predict significant problems arising for your clients.
In terms of money cases, the impact will only be felt by the 10% looking to recover sums above £10,000. However some, including senior members of the judiciary, believe it will lead to an increase in litigants representing in person, as people may have to negate legal representation to pay for the fees. This could create significant difficulties for some.
Do you anticipate a decline in probate claims work, given legal fees coupled with the rise in court costs could escalate above what many clients could potentially afford or raise? Even at the outset many potential claimants may be put off contesting claims by their own research. Even with the matter of costs being at the discretion of the Courts, it could potentially be substantial on each individual case. What plans, if any, does your practice have to assist clients and potential future clients?
Inheritance claims are another area in which the value of the claim can be substantial, but the financial means of the claimant could be extremely limited. Any claimant involved in litigation concerning an estate valued at over £200,000 (which would cover a large proportion of inheritance claims) would have to pay a compulsory £10,000 fee. Taking into account contested probate claims are already sensitive matters, this could potentially create further difficulties for all parties involved.
In contentious probate cases, costs are at the discretion of the court and such costs may have to be paid out of the estate, though a court can order otherwise in certain situations. This means that the higher court fees that the Government wants to introduce might have to be paid out of the deceased’s estate, thus reducing the amount of money available to all beneficiaries. Do you agree this would be a fair way to settle incurred costs? Or do you feel that beneficiaries would be unfairly penalised with the rise in fees? Have you similar experience in current cases?
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