Probate and Estate Administration

We provide a personal service which combines our expertise and knowledge of estate administration with an awareness that it is, for the family, often a difficult time.

Your will, taken care of

We deal with a broad range of estates from the straightforward to the very complex. Each person’s estate is different in terms of the nature and value of the assets and liabilities they leave behind and the provision they make under their Will (if they have one).

What is included with our services?

Meeting with Executors (or next of kin if there is no Will) to provide/obtain a copy of the Will (where applicable), to discuss the process and to advise on the initial information required to deal with the administration.
Obtaining full details of assets, liabilities and lifetime gifts.
Considering the Inheritance Tax position and negotiating any Inheritance Tax relief claims with HMRC.
Lodging an Inheritance Tax Return (where applicable) and assisting the Executors with any payment of Inheritance Tax due.
Assisting with any necessary advice regarding the continued trading of a private business and related re-financing matters.
Lodging the application for the Grant (a Grant of Probate where there is a Will and a Grant of Letters of Administration where there is no Will) and receiving the same.
Registering the Grant with all relevant institutions.
Assisting with the encashment or transfer of assets and discharging any liabilities or costs.
Placing statutory Notices (in a local and national publication) advertising for any creditors to come forward (if required).
Assisting with any Income Tax and/or Capital Gains Tax matters and any corrective return in relation to Inheritance Tax.
Dealing with the beneficiaries in relation to distributions.
Preparing a full set of Estate Accounts showing all assets, liabilities, income, expenditure and distributions to and from the Estate.

To also include if applicable:

Consideration as to any dispute resolution required whether involving claims against or by the estate or resolving outstanding pre-death disputes.
Advice in conjunction with an Accountant on post-death Inheritance Tax planning, including the use of deeds of variation.

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A broad summary of the procedure involved for obtaining a Grant of Representation is as follows:

Step 1:

Generally the first step is establish if there is a Will. Where there is a Will there will usually be one or more Executors appointed. Executors are the persons who are legally responsible for administering the deceased’s estate. In such cases, we will consider with the Executors whether an application for a Grant of Probate of the Will is necessary.

If there is no Will then a set of rules called the “Intestacy Rules” will apply and these will dictate who are the persons to benefit from the estate and it usually follows that those persons will take responsibility for administering the estate. In such cases, we will consider with those persons whether an application for a Grant of Letters of Administration is necessary (these are only issued where there is no Will).

In most cases, it is relatively simple to ascertain who is responsible for the estate but this may be more complicated if, for example, all of the appointed Executors have died or someone cannot be traced, and we would assist as necessary.

Step 2:

The next step is to establish the exact nature and value of the assets and liabilities in the estate and how they are held (i.e. are they in the sole name of deceased or in joint names with someone else?). It is fairly straightforward to obtain valuations of the majority of assets such as bank accounts and other cash investments but it may be necessary to obtain professional valuations of property, business interests and shares, depending on the Inheritance Tax position. It will also be necessary to consider any gifts the deceased made in their lifetime as these may need to be counted back into the estate for Inheritance Tax purposes. Again, we will provide advice in this regard.

Once a summary of the assets, liabilities and lifetime gifts is available it will be possible to assess whether a full Inheritance Tax return needs to be submitted to HMRC and whether any Inheritance Tax is payable. This will depend upon the value of the estate, the type of assets held by the deceased at their death and any exemptions and reliefs available to the estate.

Step 3:

Once the Inheritance Tax position of the estate has been established and, if applicable, arrangements have been made for payment of the tax due, an application for a Grant can be made. The Grant is evidence that the persons named on it (Executors where this is a Will, Administrators where there is no Will) are the legal representatives of the estate and that the asset holders (such as banks and share registrars) can deal with them in respect of the deceased’s estate.

In the majority of cases it should be possible to make the application for the Grant from the Probate Registry online but there are some cases where it will be necessary for this to be made by post and we will consider with you the most appropriate method to apply.

Step 4:

Once the Grant has been issued by the Probate Registry, the Executors/Administrators (in either case these can also be referred to as Personal Representatives) can close any accounts, sell or transfer the assets (as appropriate in the circumstances). From the funds, any liabilities, expenses and legacies can be paid.

Step 5:

The Personal Representatives are liable to Income Tax and Capital Gains Tax on behalf of the estate in the same way as an individual. Therefore, consideration will need to be given to any necessary tax returns covering the whole period of administration and any tax liability will need to be paid from the funds in the estate before the estate is distributed to the beneficiaries.

Step 6:

The estate is finalised by the preparation and approval by the Personal Representatives of a full set of Estate Accounts. These set out all the assets and liabilities of the estate, all payments received to and made by the estate and the distributions to the beneficiaries.

Assent of Property

This is where the title to a property is to be transferred to a beneficiary under the terms of a Will or an intestacy. Our fees for this will usually depend on the value of the property to be transferred and the number of beneficiaries.

Our range for this work is between £500 plus VAT (which on £500 is £100) and £1,000 plus VAT (which on £1,000 is £200), together with the relevant Land Registry fee payable on registration of the updated ownership. It may also be necessary to obtain up-to-date copies of the title at £7 plus VAT of £1.40.

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Our Charges

Our charges for assisting with the administration of an estate are charged in two ways and it will be for the Personal Representatives to agree, with our fee earners, after consideration of any variables, which method is to apply. VAT is chargeable on both methods, currently at the rate of 20%.

The first method is a charge based on the value of the estate (the Value Element) and a charge for the time spent on the estate by a qualified fee earner in the firm at an hourly rate currently ranging between £200 and £288, depending on the seniority of the fee earner (Standard Time Charging). The Value Element is charged at the rate of 1% (plus VAT) of the gross value of the assets which are not property and 0.5% (plus VAT) of the gross value of any property. The overall charges will be raised on a combination of both the Value Element and the Standard Time Charging rates.

The second method is a time only charge based on the time spent on the estate by a Partner in the firm at a higher rate (Enhanced Time Charging). The current charging rate for Enhanced Time Charging for a Partner in the firm for estate administration is £365 plus VAT per hour, although it is possible that someone other than a Partner will carry out some work on the file at a lower rate, which will be also be subject to VAT at 20% (see our Client Information Booklet for the hourly rates of each fee earner and assistant).

Example 1

An estate where there is one executor, one beneficiary and no other variables and which comprises two bank accounts totalling £100,000 and a property valued at £250,000:

Value Element charges would be 1% of £100,000 which is £1,000 (plus VAT of £200) and 0.5% of £250,000 which is £1,250 (plus VAT of £250) which gives a total of £2,700 inclusive of VAT. Standard Time Charging would provide an additional charge and this would depend on the time spent on the file and our estimate is that this would range from 5 to 8 hours, giving minimum charges of £1,000 to £1,600 (plus VAT at 20%), which gives a total of £1,200 to £1,920 inclusive of VAT, and a total range for combining both elements of the charging (i.e. Value Element and Standard Time Charging) of £3,900 to £4,620 inclusive of VAT, although this will increase if there is a more senior solicitor or Partner carrying out the work.

Enhanced Time Charging charges would depend upon the time spent on the file and our estimate is that this would range from 5 hours to 8 hours for a Partner, with a costs range of £1,825 (plus VAT of £365) to £2,920 (plus VAT of £584), which gives a total range of £2,190 to £3,504 inclusive of VAT.

Example 2

An estate where there is one executor, one beneficiary and no other variables and which comprises one bank account totalling £250,000 and a property valued at £1,000,000:

Value Element charges would be 1% of £250,000 which is £2,500 (plus VAT of £500) and 0.5% of £1,000,000 which is £5,000 (plus VAT of £1000) which gives a total of £9,000 inclusive of VAT. Standard Time Charging would provide an additional charge and this would depend upon the time spent on the file and our estimate is that this would range from 5 to 10 hours, giving minimum charges of £1,000 to £2,000 (plus VAT at 20%), which gives a total of £1,200 to £2,400 inclusive of VAT, and a total range for combining both elements of the charging (i.e. Value Element and Standard Time Charging) of £10,200 to £11,400 inclusive of VAT, although this would increase if there is a more senior solicitor or Partner carrying out the work.

Enhanced Time Charging charges would depend upon the time spent on the file and our estimate is that this would range from 5 to 10 hours for a Partner, with a costs range of £1,825 (plus VAT of £365) to £3,650 (plus VAT of £730), which gives a total range of £2,190 to £4,380 inclusive of VAT.

Example 3

An estate where there are four appointed executors, ten beneficiaries (two of which are missing) and comprises six bank accounts totalling £50,000 and a property valued at £95,000:

Value Element charges would be 1% of £50,000 which is £500 (plus VAT of £100) and 0.5% of £95,000 which is £475 (plus VAT of £95) which gives a total of £1,170 inclusive of VAT. Standard Time Charging would provide an additional charge and this would depend the time spent on the file and our estimate is that this would range from 10 to 20 hours, giving minimum charges of £2,000 to £4,000 (plus VAT at 20%), which gives a total of £2,400 to £4,800 inclusive of VAT, and a total range for combining both elements of the charging (i.e. Value Element and Standard Time Charging) of £3,570 to £5,970 inclusive of VAT, although this would increase if there is a more senior solicitor or Partner carrying out the work.

Enhanced Time Charging charges would depend upon the time spent on the file and our estimate is that this will range from 10 hours to 20 hours for a Partner, with a costs range of £3,650 (plus VAT of £730) to £7,300 (plus VAT of £1,460), which gives a total range of £4,380 to £8,760 inclusive of VAT.

In example 1, either method of charging could be applied or the Partner/fee earner will discuss with the client which is to be agreed.

In example 2, it is likely that the client would elect for the Enhanced Time Charging method to be applied to create a lower charge overall.

In example 3, it is likely that the client would elect for the Value Element and Standard Time Charging to apply if they are happy for a less experienced fee earner to carry out some of the work as this would create a lower charge overall.

Other Factors

Please note, there are some variables which can affect the amount of time spent, even in the case of a simple estate. These are as follows:

the number of executors appointed/potential administrators and whether they are all taking an active role,
the location of the assets, for example, assets held in a foreign jurisdiction will need to be considered separately,
if there are lifetime gifts to consider,
the number of beneficiaries, i.e., one beneficiary leads to minimal communications but multiple beneficiaries leads to substantially more communications,
the Inheritance Tax position of the estate and whether there are any exemption and reliefs to apply for,
whether there are any disputes relating to the estate, for example, if there is a claim against the estate by a person who has been excluded from the Will, or if there are disputes between beneficiaries on division of the assets,
whether there are farming or business interests involved in the estate,
if there are any digital assets in the estate,
if there are missing executors or beneficiaries for which we may have to instruct Genealogists to assist us, and
if there is missing documentation, for example, unregistered deeds to a property.

There may also be other variables that are not listed above but our fee earners will endeavour to identify any variables at an early stage to enable them to provide you with as much information as possible about how these may affect our charges.

As a very general guide, we anticipate that where we agree Enhanced Time Charging with our clients that the following ranges will apply (although please note that the variables on each case are unique and our fee earners will discuss any likely departure from these rates with you at the earliest opportunity):

- Simple low value estates with no variables and no Inheritance Tax Return – 5 hours to 8 hours for a Partner, with a costs range of £1,825 (plus VAT of £365) to £2,920 (plus VAT of £584), which gives a total range of £2,190 to £3,504 inclusive of VAT;

Medium value estates (for example, some bank accounts and one property) with no variable and no Inheritance Tax Return: 8 to 15 hours for a Partner, with a costs range of £2,920 (plus VAT of £584) to £5,475 (plus VAT of £1,095), which gives a total range of £3,504 to £6,570 inclusive of VAT;

High value estates (for example, some bank accounts and one or more properties) no variables and no Inheritance Tax Return: 10 to 25 hours for a Partner, with a costs range of £3,650 (plus VAT of £730) to £9,125 (plus VAT of £1,825), which gives a total range of £4,380 to £10,950 inclusive of VAT; and

- Most other simple, medium and high value estates with some variables and/or a full Inheritance Tax Return: 10 to 100 hours for a Partner, with a costs range of £3,650 (plus VAT of £730) to £36,500 (plus VAT of £7,300), which gives a total range of £4,380 to £43,800 inclusive of VAT.

For complex estates, including those which involve Trust work or for the estates that are long running, the work involved may exceed 100 hours and our Partners/fee earners will endeavour to keep you informed of the costs position as and when relevant information is available.

Please note that, although we have provided some examples above, it is not possible to give a general guide in relation to the Value Element and Standard Time Charging method due to the fact that the Value Element charges are entirely dependent upon the value of the assets in the Estate.

Grant Only

If we are instructed to deal with the application for the Grant only and we will not be involved in the administration process beyond this, we will apply a minimum fee of £950 (plus VAT of £190) where this is straightforward up to a maximum fee of £2,000 plus VAT of £400) totalling £1,140 to £2,400 inclusive of VAT for a more complicated case (with higher value and/or more variables).

Other expenses

In addition to our charges for the legal work, there are other expenses which may arise in some cases as part of the administration, for example:

Probate fee – currently £300 and £1.50 for additional copies (VAT not applicable)

Official Copy of the Register for registered property in the estate – £7 plus VAT per copy of title or plan (plus VAT of £1.40) totalling £8.40 inclusive of VAT

Certainty Search – from £65

Bankruptcy Search (against a beneficiary) - £6 per name searched (plus VAT of £1.20) totalling £7.20 inclusive of VAT

Notices for creditors (often called “Statutory” or “Trustee Act” notices) - £200 - £300 depending upon the publication

Property valuation fees – these will be paid direct to a professional agent and we will endeavour to obtain a fee for each client for approval prior to the valuation taking place

Agents fees on the clearance of a property – as above

Share or other valuation fees – as above

Fees payable to Registrars for documents pertaining to the sale of transfer of share – variable

Accountancy fees (where we are required to liaise with accountants or more detailed tax assistance is necessary - variable

What is not included in our Administration of Estate Services?

Sale of Property

Whilst we can assist client with a sale of a property in an estate, the costs of the sale will not be included in the costs provided above and the client will be provided with additional costs information relating to the sale based upon the value of the property. Please refer to our conveyancing costs information page in this regard.

Sale of Business

If we are instructed on the sale of a business in an estate, the costs of sale will not be included in the costs provided above and the client will be provided with additional costs information relating to the sale based upon our current rates for dealing with commercial matters. Please refer to our commercial page for further information and contact details in this regard.

Charges for time vary according to the fee earner involved and further details are contained within our Client Information Booklet.

Charge breakdown

Likely taxes will include:

Inheritance Tax: The exact amount due depends completely on the circumstances and we will provide you with a clear calculation once all of the information is available.
Income Tax and Capital Gains Tax: A liability to income tax and capital gains tax. Executors are responsible for reporting to HMRC for all estate income and capital gains from the date of death to the date the administration is complete

Anticipated disbursements will be confirmed to you once the extent of the estate assets and liabilities are known. By way of example:

Probate application fee – £300. This is currently a flat fee to include 1 official copies of the Grant of Probate (any additional copies are £16 each)
Statutory Advertisement Fees: Between £100 and £200 plus VAT (between £20 and £40). The placing of these adverts help protect the Executors against any future unknown creditors.
RICS Property Valuation Fee: Between £250 and £750 plus VAT (between £50 and £150).
Share Valuation Fee: Between £50 and £500 plus VAT (between £10 and £100 depending on the size of the investment portfolio).

Other fees and disbursements

disbursements are costs related to your matter that are payable to third parties, such as search fees which we handle on your behalf to ensure a smoother process) will include:

Official copy Title and Filed Plan fees: £7.00 (plus £1.40 VAT)

Possible factors which could increase costs:

The number of legatees and compliance issues (we are now required to obtain identity information for all beneficiaries).
Delayed communications from HMRC;
The existence of nominations in relation to life policies;
Collating information for pre-death income tax reporting and a complex income position with any foreign income;
Lengthy consideration of specific assets to be transferred to beneficiaries and the tax implications.

How long will the estate administration take?

The simplest of estates are often dealt with within 6 months of instruction. Typically, obtaining the Grant takes 1 to 2 months and collecting in all of the assets takes 1 to 2 months. Once this has been done we can distribute the assets which can normally be done within a month.

Complex estates take on average about 1 to 2 years to administer. Typically, obtaining the Grant takes 5 to 6 months as exact valuations of all assets and liabilities need to be obtained. Collecting and distributing all of the assets can take between 4 to 6 months depending on the wishes of the residuary beneficiaries and any tax considerations. It often takes many months to agree the Inheritance Tax with HMRC and this often delays the final administration of estates.