Estate Administration Fees

Every probate case is different and can involve a lot of complex work to identify all the assets involved, pay the appropriate taxes, collect in the assets, and identify and account to the beneficiaries. We offer an initial free telephone consultation and once we know the full size and complexity of the estate we will provide you with an estimate of anticipated total costs which will be based on an hourly rate.

The following quote is for a straightforward estate where:

• There is a valid will
• There is no more than one property (with the Executors managing all utility accounts, inspecting the property and arranging clearance)
• There are no more than 5 bank or building society accounts
• There are no other intangible assets
• There are no more than 6 liabilities
• There are 1-5 beneficiaries (of age and with capacity)
• There are 1 or 2 executors
• There are no disputes between beneficiaries on division of assets. If disputes arise this is likely to lead to an increase in costs
• There is no inheritance tax payable and the executors do not need to submit a full account to HMRC
• No income tax return is required
• There are no claims made against the estate
• There are no foreign assets

We anticipate an estate of this nature will take between 15 and 25 hours work at an average hourly rate of £300 plus VAT at 20%. Total costs estimated at £4,500-£7,500 (+VAT at 20%), giving a total of between £5,400 and £9,000.

The exact cost will depend on the individual circumstances of the matter. For example, if there is one beneficiary and no property, costs will be at the lower end of the range. If there are multiple beneficiaries, a property and multiple bank accounts, costs will be at the higher end.

How long will this take?

On average, estates that fall within this range are dealt with within 8-12 months. Typically, obtaining the grant of probate takes up to 6 months, based on the Probate Registry’s estimated guidance of 16 weeks for issuing Grants. Collecting assets then follows, which can take between 6-12 weeks (subject to any delays in selling estate assets, including property). Once this has been done, we can distribute the assets (subject to obtaining confirmation from HMRC that all tax affairs have been agreed which can take several months). The exact timescale will depend on the individual circumstances of the matter and could range significantly depending on many factors. We can give a more accurate timescale once we have more information.

Potential additional costs

The fees for our service can vary depending on a number of factors including, but is not limited to:

• How many beneficiaries there are
• If there is no valid will
• If the will includes a trust
• If the deceased benefited from a trust in their lifetime
• If there is inheritance tax to pay or a full Inheritance Tax account is required or if HMRC raise enquiries
• If there are assets overseas
• If there is any property to be sold or transferred to a beneficiary
• If there are multiple bank accounts
• If there are multiple shareholdings
• If there are any disputes about the division of assets or claims against the estate
• If we need to deal with past years tax affairs
• If there are trusts, lifetime gifts, significant shareholdings, business and agricultural assets, or discounted gift trusts involved

If any of these factors are present, there are likely to be additional costs that could range significantly depending on the estate and how it is to be dealt with. We can give you a more accurate quote once we have more information.

We will handle the full process for you. This includes:

• Ascertaining the assets and liabilities of the estate
• Calculating any inheritance tax due
• Obtaining the Nil Rate Band (and Transferable Nil Rate Band if appropriate) for Inheritance Tax purposes
• Obtaining the Residence Nil Rate Band (and Transferable Residence Nil Rate Band if appropriate) for Inheritance Tax purposes
• Completing the relevant forms for HM Revenue & Customs
• Dealing with the insurance and utilities of the property or properties within the estate
• Obtaining a Grant of Representation
• Collecting the assets
• Dealing with the shareholdings in accordance with your instructions
• Paying debts, taxes and administration expenses
• Selling assets, if necessary, to release cash for the purpose of the administration;
• Transferring the assets to those entitled
• Dealing with the income tax affairs of the deceased for the tax year to the date of death and the administration period if this can be dealt with informally
• Producing estates accounts
• Accounting to the beneficiaries

Our fees do not include:

• Any disputes or claims against the estate or regarding the validity of the Will
• The preparation of a Deed of Variation
• Dealing with the income or Capital Gains tax affairs if formal tax returns are required (other than those for the tax year to the date of death) including any HM Revenue & Customs investigation
• Any investigation by the Department for Work and Pensions
• Any conveyancing fees incurred in dealing with the transfer or sale of estate property
• Dealing with the deceased’s insolvency
• The need for the executors to commence litigation proceedings against a third party
• Monies transferred telegraphically to bank accounts

Additional disbursements which are not included in our fee, include, but are not limited to:

• ID and compliance checks – £13.86 per person
• Probate application fee of £300 -VAT-exempt
• Per official copy of the Grant – £1.50 -VAT-exempt (you will need several copies depending on the size of the estate)
• Land Registry office copies of title £3.60 per property
• Bankruptcy-only Land Charges Department searches (£2.40 per beneficiary based in the UK.  Bankruptcy searches for beneficiaries living abroad will be more and will vary depending on geographical location)
• Trustee Act Notices – £275 (approx.) Post in The London Gazette and local paper – Protects Executors against unexpected claims from unknown creditors.
• Certainty Will Search – £280 (approx.) Helps to ensure that you are in possession of the deceased’s last Will.
• Missing Asset Search – £200 (approx.) searches for any unknown assets
• Asset valuation fees e.g. for property, vehicles, contents, shares etc.  – will vary, but likely to be between £200 – £1,000

Disbursements are costs related to your matter that are payable to third parties, such as court fees.  We handle the payment of the disbursements on your behalf to ensure a smoother process.  Where applicable, VAT is included in the above figures at 20%.  Third party disbursements are subject to change.

Taxes

An estate may be liable for a number of taxes, including, but not limited to Inheritance Tax, income tax and Capital Gains tax.  Any tax liability for the estate (together with any interest or outstanding penalties applied by HMRC) is not included in the price and will be an additional cost.  This also applies to any financial liabilities the estate may have.