Probate / Estate Administration
In difficult times, it helps to minimise any unnecessary stress. I can do exactly that by dealing with estate administration when someone has passed away, obtaining probate with and without a will (an intestacy).
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Applying for probate and dealing with the administration of an estate takes place in two stages.
Firstly, I gather all relevant information, consider inheritance tax implications, complete any inheritance tax returns and apply for the Grant of Probate (or letters of administration if there’s no will). Secondly, following receipt of the grant, I deal with the administration of the estate on your behalf. I can help with as much – or as little – of the process as you require. I’m able to:
- Deal with the full administration of the estate
- Obtain the Grant of Probate (or letters of administration) only
- Obtain the Grant of Probate (or letters of administration) and carry out some additional work for you.
The costs
My charges for the administration of an estate are based on a standard hourly rate of £250 (no VAT at present). Once I’ve received details of the assets in the estate, terms of the will and tax position, I can provide you with an estimate of the level of work required. The ultimate cost will depend on the circumstances of the particular estate. I’ll agree an upper limit with you at the outset and will keep you informed on a monthly basis of the work done and the costs incurred.
The first invoice will normally not be issued until the grant has been received from the court and there are funds from the estate to clear this.
My business is regulated by the Solicitors Regulation Authority which provides that my fees must be ‘fair and reasonable having regard to all the circumstances of the case’. Please note: the sale or transfer of any property in the estate isn’t included in any fee estimate and will be costed separately. The typical process and example costs in each case will be as set out below. Please note: these are illustrations only and I will provide a more detailed estimate in each case. -
- Meeting you to discuss details of the assets/property in the estate, any liabilities and information about the family and other beneficiaries, and other relevant background
- If there’s a will, reviewing the content with you, advising you on the terms and noting any difficulties that might arise
- Gathering details of the assets and property and their value at the date of death, and, if necessary, appointing experts to value property and/or personal possessions and antiques
- Arranging payment of the funeral account
- Advising on inheritance tax if there is any to pay, completing the inheritance tax return and claiming reliefs where required
- Advising on how to pay the inheritance tax and arranging payment
- Preparing the required Legal Statement for the executor/administrator to sign for the Court
- Lodging the inheritance tax return with HMRC
- Making the application for the grant to the probate registry
- Preparing forms to close accounts and sell or transfer shares or investments etc
- On receipt of the grant, registering this with the various institutions and closing accounts, receiving funds
- Settling any liabilities of the estate
- Obtaining clearance from HMRC if necessary
- Dealing with income tax and capital gains tax for the estate
- Advising on steps to take to protect executors/administrators from claims on the estate
- Preparing estate accounts and distributing the assets in accordance with the terms of the will
How long will the process take?
The whole process can take 6 to 12 months – and sometimes longer, depending on a number of different factors. I’ll discuss the likely timescales with you at every stage of the work. Please note: I have no control over the work of the probate registry in dealing with applications once lodged.
Example costs
- For an estate worth £200,000 to £325,000, made up of a property and a small number of accounts and investments, with a small number of beneficiaries: £2,500 to £4,500
- For an estate worth £500,000, with several accounts/assets including a property but no inheritance tax: £4,500 to £6,000
- For an estate worth £500,000 to £1m with inheritance tax to pay, several beneficiaries and a number of assets: £7,500 to £10,000
Disbursements
Disbursements are payments I make on your behalf, some of which are subject to VAT. These may include:
- A will search fee @ approx. £95 plus VAT
Bankruptcy searches @ £2 plus VAT for each beneficiary - Land registry fees for title details @ £3 plus VAT for each property
- Probate application fee @ £273 plus £1.50 for additional copies
- Statutory notices for executor protection @ approx. £175 plus VAT
- Professional fees (e.g. surveyor’s fees for property valuation)
- Costs of transfer of shares payable to registrar.
I’ll advise you in advance of disbursements that I need to make on your behalf.
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- Meeting you to discuss details of the assets/property in the estate, any liabilities and information about the family and other beneficiaries, and other relevant background
- If there’s a will, reviewing the content with you, advising you on the terms and noting any difficulties that might arise
- Advising on inheritance tax if there is any to pay, completing the inheritance tax return and claiming reliefs where required
- Advising on how to pay the inheritance tax and arranging payment
- Preparing the required Legal Statement for the executor/administrator to sign for the Court
- Lodging the inheritance tax return with HMRC
- Making the application for the grant to the probate registry
Please note: in this case, you must provide all the information about the value of the assets at the time of death.
How long will the process take?
It usually takes 1 to 2 weeks to complete the required forms, given that you have provided all the information about the value of the assets and there’s no need to complete a full inheritance tax return.
Once the papers have been signed, obtaining of the grant will normally take a further 6 to 8 weeks, providing there are no complications.
If a full inheritance tax return is required, it will usually take 2 to 3 weeks to prepare the necessary papers and arrange signatures and submission to HMRC, plus a further 8 to 12 weeks to receive the grant.
These timescales can vary, depending on a number of different factors. I’ll discuss the likely timescales with you at every stage of the work.
Please note: I have no control over the work of the probate registry in dealing with applications once lodged.Example costs
- If there is a valid will, no inheritance tax and no requirement to file a full inheritance tax return: £850
- If there is a valid will and no inheritance tax on the basis that a claim for transferrable allowances needs to be made: £975
- If there is a valid will and no inheritance tax to pay but a full inheritance tax return is required: £1,200 to £1,500
- If there is inheritance tax to pay and a full return is required: £1,500 to £2,000
Any additional work would be charged at my hourly rate of £250 and I’d include an estimate for this work with my initial client care letter.
Disbursements
Disbursements are payments I make on your behalf, some of which are subject to VAT. These would be limited to:
- Probate application fee @ £273 plus £1.50 for additional copies
- Land registry fees for title details @ £3 plus VAT for each property
- Professional fees (e.g. surveyor’s fees for property valuation).
I’ll advise you in advance of disbursements that I need to make on your behalf.
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In this case, I will provide an estimate of the process and costs once the level of work required has been established. For example, you might ask me to obtain the Grant of Probate only, but then find that you would also like me to deal with part of the administration of the estate.