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Probate delays continue to have a serious impact on charities

In a recent poll carried out by Rathbones, the general consensus found was that charities continue to be negatively impacted by ongoing probate delays. Rathbones confirmed that this finding is largely unchanged compared to their early 2024 poll results. 

Despite there being an improvement in the turnaround time at the Probate Registry (4.9 - 14 weeks for online applications and 13 weeks for paper applications), complex cases usually take significantly longer.  

Unfortunately, legacy income is an established source of revenue for charities, and the ongoing delays are resulting in such organisations having to make various cuts to their services. This is particularly at a time when charities are seeing a demand for their services. It is also noted that internal redundancies appear to be on the rise. 

Whilst it is hoped that we will continue to see an improvement in the service offered by HM Courts & Tribunals Service (HMCTS), charities need to remain mindful that any such legacy income due to them is likely to take months, rather than weeks, and this will need to be factored into their individual long-term financial strategy. 

 

Legacy income is a well established source of revenue for charities, contributing as much as £4.5 bn annually to support their work.  Over half (57%) of charity executives asked say delays have meant they have sold vital assets, such as property, to fill the financial gap. Around half (51%) say it has adversely affected recruitment and worryingly, 43% say they have had to cut back on vital services. Others report having to make redundancies (38%) and cutting back on research (24%).

Tags

charity, charity legacy, charity trustees