Estate administration pricing

Overview

We recognise that the loss of a loved one is a difficult and stressful time and offer a full estate administration service, founded on the principles of sensitivity and care and of providing practical and straightforward advice.

We can help you through this difficult process by dealing with all the required formalities, including obtaining the grant of probate on your behalf. We will also undertake the collecting and distributing of assets.

How much does this service cost?

We charge a fixed fee of 2.75% of the gross probate value of the estate but with a minimum fee of £3,000. VAT (currently at 20%) is charged in addition, as are any disbursements.

In circumstances where the estate is high in value but the circumstances are straightforward, we may be able to offer a discount to our usual fees. This may be appropriate where, for example, the family home is valuable and is the main asset of the estate.

Disbursements

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.

The typical disbursements in an estate administration case include (this is not an exhaustive list):

• Probate court fee of £300 (no VAT).
• Each “office copy” of the grant issued by the court £1.50 (no VAT).
• £5 for swearing of any affidavits that are required in connection with the application for the grant of representation plus £2 for each exhibit to it (no VAT).
• Bankruptcy-only Land Charges Department searches of £7.20 for digital or £8.40 for paper each including VAT at 20% per beneficiary.
• Between £90 to £350 including VAT at 20% for “statutory advertisements” in the London Gazette and in a local newspaper or newspapers. These protect against unexpected claims from unknown creditors.

The estate may also be responsible for paying other administration expenses, which may include (but are not limited to) estate agents’ fees, property clearance fees, asset and liability searches, will or other document searches, valuers’ or auctioneers’ fees, genealogists’ fees, fees of overseas agents and/or notaries where there are assets in other jurisdictions.

Inheritance tax

Inheritance tax is payable at 40% on the value of a person’s “tax estate” (which may include more than the assets passing under their will) to the extent that it exceeds £325,000, subject to any applicable exemptions or reliefs.

The estate may also be liable for other taxes, such as income tax and capital gains tax.

Examples

In a typical case where a person left £75,000 the total fees, VAT and disbursements would be in the region of £4,350 made up as follows:
Our fees: £3000 (minimum applies)
VAT: £600
Disbursements (say): £750
Additional administration expenses may also be payable by the estate, depending on the circumstances.

In a typical case where a person left £250,000 the total fees, VAT and disbursements would be in the region of £9,000 made up as follows:
Our fees: £6,875
VAT: £1,375
Disbursements: (say) £750
Additional administration expenses may also be payable by the estate, depending on the circumstances.

In a typical case where a person left £1.2million the total fees, VAT and disbursements would be in the region of £40,350 made up as follows:
Our fees: £33,000 (as stated above, we may be able to offer a discount for higher value estates such as this if the circumstances are straightforward)
VAT: £6,600
Disbursements (say): £750
In this case inheritance tax would most likely be payable in addition. Additional administration expenses may also be payable by the estate, depending on the circumstances.

As part of our fixed fee we will:

• Meet with you in person, or on a video call, to advise on the terms of the deceased’s will / intestacy provisions and discuss the duties of the executor(s) / administrator(s).
• Review the assets and liabilities and write the initial letters to banks, building societies, utilities (including council tax) and insurance.
• Submit statutory notices, if required (these will always be required where a professional executor is to be named on the grant of representation).
• Notify the beneficiaries of their entitlements under the will / intestacy and obtain identification.
• Prepare probate application and inheritance tax forms (if required).
• Calculate if there is inheritance tax to pay.
• Submit application to the probate registry to obtain grant of probate / letters of administration, once the probate application has been completed and inheritance tax form signed (if required).
• Once probate is received, collect in the assets and pay outstanding liabilities.
• Pay any legacies or interim distributions to the residuary beneficiaries.
• Submit bankruptcy checks.
• Prepare estate accounts for approval by the executor(s) / administrator(s).
• Pay out balance to residuary beneficiaries.

The following are not included in the fixed fee price:

• Property sale or transfer (if applicable).
• Deeds of variation for the beneficiaries.
• Appropriation of assets to beneficiaries (if applicable).
• Business or farming advice (if applicable).
• Any investigations by HMRC into the deceased’s lifetime tax affairs.
• Changes to legislation during course of estate administration.
• Trusts, including in which the deceased was a beneficiary as at the date of death.
• Trusts set up by the deceased under the will.
• HMRC Trust Registration Service requirements (if applicable).
• Financial advice on the suitability of the disposal of assets in the estate.
• Personal taxation of estate beneficiaries.
• Restitution for long term care funding incorrectly paid to the deceased (if appropriate).
• Additional or certified copies of documents.
• Anything else not specifically identified in the scope of the fixed fee as set out above.

We (including colleagues in other departments) can assist with any of these aspects, if required.

Timescale

Typically, getting to the stage where it is possible to apply for the grant of probate takes around three to four months at the start of this process.

It is difficult to give a timescale for the completion of the administration of the estate, as this depends on the timescales for responses from third parties such as the probate registry, HM Revenue and Customs, and financial institutions. If there is a property in the estate that is to be sold, this can also influence the timescales. It is not uncommon for an estate to take 12-18 months to reach a conclusion, although this will vary depending on the circumstances.

Details of lawyers who may work on the matter

Details of supervisors