Nearly all charities have probate delays

Charities say they are having to cut back on vital services over delays with probate.

Problems with probate - the legal right to deal with someone’s estate when they die – are affecting nearly every charity with research showing 99% facing hold-ups.

A study published by wealth manager Rathbones found that over a quarter of charities said they have had to cut jobs as probate delays have affected their finances.

Rathbones is responsible for £9.4 billion in funds under management for more than 3,000 charities and said that around 14% of each charity’s income is currently held up by probate issues.

This had led charities to make difficult decisions in order meet the financial gap.

Eight in 10 senior charity executives said the problems are affecting their recruitment plans while 51% said it had caused them to cut back on their services.

The research also found that 43% said they have sold assets, such as property, to fill the gap while 27% have made redundancies.

Andy Pitt, head of charities at Rathbones, said: “The logjam is not only adding to the financial stress of grieving families, with property sales falling through or having to pay interest payments on inheritance tax – but is also resulting in many senior charity executives having to make difficult decisions on how to cope with hindered cash flow.

“They don’t know how long they could be waiting to receive these much-needed funds and it’s impossible to budget or plan for the future.”