Others have inherited investment portfolios that have plummeted in value due to stock market volatility.
Richards said one of his clients lost £1m because probate delays caused his family to sell their £3m portfolio after the Ukrainian War began, at which point the investment was It was plummeting.
Law firm JMW said investment losses are becoming a “serious problem” for bereaved families, especially given the recent stock market decline.
The silver lining is that if a survivor sells the deceased’s investment at a loss, they can usually claim inheritance tax from HM Revenue and Customs.
However, JMW said the delay did not leave the family enough time to claim compensation within a significant window.
Survivors have only 12 months to claim loss relief from HMRC for a stock price decline. The Association of Tax Professionals, a trade body for accountants, has asked the government to extend the 12-month period from 18 months to 2 years, given the delay.
JMW’s Joe Cobb said: and no remedy can be claimed. ”
Former Conservative minister Ross Altman says court stays are “extremely frustrating for bereaved families” and “cost thousands of pounds as loved ones’ property sales fail in a weak market”. rice field.
“When the backlog is growing and the property sale is about to fail, it is not easy to find a solution because people cannot demand the ‘quick’ route.
“I hope the government will look into this and find ways to speed up the process as soon as possible,” she added.
Law firm Morr & Co’s Natalie Payne said the family was being punished as a result of flaws in the system.
“This is happening at a time when we would expect a significant drop in real estate prices,” she said. “It is the family who must pay the price for their mistakes.”
A spokesperson for the HM Courts and Tribunals Service said:
