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PROBATE AND ESTATE ADMINISTRATION SERVICES
Typical stages in estate administration
Stage 1
Valuing the Estate
At this stage, we will go through the deceased’s papers and bank statements to establish their assets and liabilities. This can be quite straightforward, however in some cases there may be multiple investments, properties, and other personal belongings to consider.
At this stage we may need to contact banks, lenders, fund managers, pension providers, the local government, the DWP, and HMRC.
Stage 2
File Inheritance Tax Forms
Regardless of whether inheritance tax must be paid, inheritance tax forms must be completed. One form is used for non-taxable estates, another for taxable estates.
We will complete the related forms as well as any additional schedules to establish the amount of tax payable. In a complex estate, accountancy services may be used for this work if this would prove more cost-effective, but our client would receive a fee estimate and discussion about the need of such work in advance of instructing such an expert.
Stage 3
Pay Inheritance Tax
If there is inheritance tax payable on the estate, then it must be paid prior to obtaining the grant of probate. Funds can be transferred directly from one of the deceased’s accounts for this if there are sufficient funds.
Stage 4
File Probate Forms
Once we have assessed the size of the estate, we will be able to complete the probate application form and apply to the Probate Registry.
The Executors will need to sign a statement of truth to accompany this application to confirm that the details of the application are correct.
Stage 5
Pay Probate Fees
At this stage, we will pay the applicable probate fees on your behalf. These are fixed, regardless of the size of the estate and are detailed above in the disbursements section.
Stage 6
Administer the Estate
We will collect in the assets of the estate, discharge the liabilities, and subsequently distribute the estate in accordance with the Will or Intestacy rules.
Timescale
The likely time scale for estate administration/probate work varies from case to case, but the process could take an average of 3 to 12 months before the conclusion of the matter.
Who will deal with the matter?
The Estate Administration Team is:
S. Katrina Cartwright-Harwood, a solicitor and senior director who qualified in 1984. She has 36 years’ experience in Wills, Probate, and Estate Administration and was a founding member of this practice in 1997.
Legal assistant James Harwood who has some 15 years’ experience in estate administration.
Our Costs for Probate services
It is important to note that no Estate is the same and therefore the costs will depend on the individual circumstances relating to each Estate.
Our costs are calculated by reference to the time actually spent dealing with the matter, charged at an hourly-rate. We will give you an estimate for our costs for dealing with the Estate based on the estimated number of hours work required.
In Probate and Estate administration cases, the final total cost of the matter depends upon the particular facts and circumstances of each case and each case is different. A standard Estate can take between 10 to 30 hours to complete, and the fees are typically in the range of £1,780 to £6,030 plus VAT (£2,136 to £7,236 including VAT).
How much time will be spent on the case depends upon the circumstances of each case and differs from case to case dependent upon the range, type and number of assets, the number of beneficiaries, and how much help beneficiaries or personal representatives may require from us.
Should the matter become more complicated, any change in our estimated fees would be communicated with you as soon as possible to take into account any unforeseen work.
Our charging rates apply in relation to uncontested cases in respect of both testate and intestate and taxable and non-taxable estates.
Our charging rate based on time is at the rate of £201.00 per hour for work conducted by a solicitor who is a director in this firm. The charging rate in relation to work carried out by a solicitor who is not a director in this firm is £178.00 per hour and the charging rate in relation to work carried out by a legal assistant is £111.00 per hour.
All the hourly-rate figures are subject to VAT which is charged at the standard rate – currently 20%.
These hourly-rates are charged for time spent attending upon our client or any others for the purpose of receiving instructions, gathering information, considering documents and advising, and the time spent in gathering the estate’s assets and distributing those assets to the beneficiaries of the estate. Telephone calls and letters and e-mails written are charged at 10% of the hourly rate. Incoming correspondence is charged at 5% of the hourly rate.
Disbursements
In addition to costs, there are Disbursements which are costs related to your matter that are payable to third parties, for example, Court fees. We would deal with the payment of Disbursements on your behalf as part of the administration of the Estate.
Typical Disbursements which will be payable in addition to our costs are as follows:
• Probate application fee of £273.00 plus £1.50 per copy Grant of Probate. These fees are not subject to VAT.
• Bankruptcy-only Land Charges Department searches (£2.00 per beneficiary). This fee is not subject to VAT.
• The cost of a notice in the London Gazette (currently £70 + VAT). This identifies and protects against unexpected claims from unknown creditors.
• The cost of a notice in local newspaper – this also helps to protect against unexpected claims.
• Accountancy costs – this will depend on the complexity of the Estate and would include the costs of completing Trust and Estate Tax Returns together with the completion of the Executors Accounts. We can provide an accurate quote once we have more information from you and determine that this course of action is necessary.
• Insurance costs – to insure assets such as a residential property. An accurate quotation can be obtained once we have the relevant property details.
• Other professional fees such as expert valuers.
Our Probate fees do not include the following additional work:
• Dealing with the sale or transfer of any property in the estate is charged separately. Please refer to our Conveyancing Services for pricing information
• Dealing with a Deed of Renunciation where one or more of the Executors wishes to step down. This will be dealt with on a time spent basis at the applicable hourly rate as referred to above and we would estimate that this would take one hours’ work (£111 to £201 plus VAT).
• Dealing with assets outside the UK.
We remind you that no Estate is the same and therefore costs will depend upon individual circumstances. All clients therefore should obtain a bespoke quote for their particular circumstances.
For Estate administration matters please contact us at enquiries@philipaverysolicitors.co.uk or telephone: 01554 746295.
We will help you reduce the stress, conflict, and confusion regarding Probate during what can be a difficult and emotional time.