What are Expenses #
Expenses cover any costs paid out either by an Executor, or directly from the estate as a result of the death of the person who has died. These would usually include Funeral expenses, Probate or legal fees (including the cost for YouCanDoProbate), and other costs incurred such as advertising in the Gazette, obtaining a valuation of a property and other such expenses. Only Funeral expenses are allowable as a deduction against the value of the estate applicable to Inheritance Tax.
If these expenses are paid by an Executor, then the Executor can reclaim these costs out of the Estate on the distribution of the Estate once Probate has been granted. A schedule of expenses owed is presented in ‘Stage 4 > Grant of Probate’.
What counts as a Funeral Expense? #
You may deduct funeral expenses and reasonable mourning costs. You may also deduct the cost of a headstone or plaque marking the site of the deceased’s grave.
These expenses may also include a reasonable amount to cover the cost of:
- Flowers.
- Refreshments provided for mourners after the service.
- Necessary expenses incurred by the executor or administrator in arranging the funeral.
Allowable funeral costs do not include:
- Travelling.
- Accommodation costs for the mourners.
Please Note: If the deceased had paid for a funeral plan that covered all the funeral costs then you should not include anything in the Expenses.
Probate Registry Fees #
This is the fee payable directly to HM Courts and Tribunals Service and is a set fee of £300 for Estates with a value of more than £5000. There are additional costs for the number of copies of the Grant that you are required to send to the various providers for them to release funds etc. These are charged at £1.50 a copy but again these expense are allowed against the estate.
For further information please read Probate Registry Fees.