The Isle of Man Government’s decision to overhaul its non-resident policyholders probate fees on life assurance policies, has been welcomed as “very positive”, by Canada Life.
The Isle of Man Government has introduced a change to probate charges which has reduced fees to a maximum of £250 for non-resident applications, where the only asset is a life assurance policy.
In 2013 the Isle of Man had previously increased all probate fees from a maximum £650 to £7,500 for estates of over £1m. More recently the maximum increased to £8,000 with no distinction between resident and non-resident.
When compared against other jurisdictions, Canada Life said in a statement released today, that it felt that previously the Isle of Man appeared uncompetitive on probate matters. For example, in the UK there is currently a single cost of £155 for estates above £5,000, and Ireland, there is a fee of €606 is payable on the first €300,000, increasing by €24 for every additional €31,250.
Sean Christian, executive director for Canada Life’s international businesses, welcomed the move calling it “a very positive message” for UK policyholders and a boost to the Isle of Man’s status as an International financial centre.
“We were concerned at the recent hike in probate costs and are very pleased that the Government has listened to our concerns and has introduced the new rates,” said Christian. “This move underlines the competitiveness of the Isle of Man as a stable, low cost jurisdiction to do business and is a glowing example of the unique partnership that exists between Isle of Man businesses and Government to ensure the Island remains an efficient and effective place to do business.”
Isle of Man Probate Fees for Policyholders*
|Pre 1 May 2016||From 1 May 2016|
|Net size of estate||Fee||Net size of estate||Fee|
|Does not exceed £10,000||£ 27||Does not exceed £10,000||£ 27|
|Exceeds £10,000 but not £50,000||£ 160||Exceeds £10,000 but not £50,000||£ 160|
|Exceeds £50,000 but not £125,000||£ 470||Exceeds £50,000||£ 250|
|Exceeds £125,000 but not £250,000||£ 1,000|
|Exceeds £250,000 but not £500,000||£ 2,000|
|Exceeds £500,000 but not £1,000,000||£ 4,000|
|Exceeds £1,000,000||£ 8,000|
*where the only asset is a policy of life assurance which has been effected with any insurance company in the Isle of Man by a person who has died domiciled elsewhere than in the Isle of Man (Source: Canada Life)