Grant of Probate - price transparency

There are often conflicting views given by friends, family and even apparent experts as to what is involved in the correct administration of an Estate, and as to how long that process should take. The reality is that not everyone’s personal affairs (and therefore estates) are the same. Whilst the general framework is the same, the nuances can have implications for timescales and complexity.

Our specialist lawyers will talk you through the process, timescales and likely costs involved before you formally instruct us to carry out any work.

We have set out below the process, timescale and legal costs (and disbursements) involved in the administration of an estate. Please do not hesitate to contact us if you have any queries or would like to discuss matters in person.

An overview of the probate process.

Following a bereavement, somebody (often family or friends of the Deceased) will put in place immediate arrangements for registering the death, dealing with the funeral director, and making sure important documents (such as a Will, identification, property and financial documents) are secure.

A legal advisor may be consulted at this stage to discuss the arrangements for the funeral and securing important personal documents. For example, the lawyer may hold the Deceased’s Will in secure storage and the Will may need to be consulted to identify the Deceased wishes for their funeral or disposal of their remains.

A Legal Advisor is often formally instructed after the immediate post death arrangements have been concluded, for example, a funeral. The legal advisor will usually meet with the executors (and sometimes the Deceased’s family and beneficiaries) review all documentation available relating to the Deceased’s personal and financial affairs. The Legal Advisor will review the Deceased’s Will and testamentary wishes, with a view establishing what work needs to be undertaken to administer the Deceased’s assets, discharge the Deceased’s liabilities and conclude the Deceased’s Tax affairs before being in a position to calculate what remains to be distributed to beneficiaries of the Deceased’s Estate.

This investigatory period may include searching for a Will, checking that the Deceased made no subsequent Will, making enquiries as to whether other unknown assets or liabilities may exist and obtaining correct valuations of the Deceased’s assets and liabilities for HMRC purposes.

Notices (known as Trustee Act notices) may be published by the Legal Advisor to protect the Executors from unknown claims against the Estate.

Once the extent of the Deceased’s financial and property affairs have been established, the Legal Advisor will prepare the Inheritance Tax Account and Legal Statement for the executor’s approval. The documents will usually be discussed during a meeting and following which they will be finalised for signature.

It is important to note that the timescale of this investigatory period can vary. For example, an estate with a main residence and cash saved in bank and savings accounts will generally take less work (and therefore time) than an estate, for example, containing a number of properties, agricultural land and share or bond investments.

In cases where a full Inheritance Tax account is required, the executors must await confirmation from HMRC that the tax position has been accepted “in principle” and that all tax that needs to be paid immediately has been paid before the application for probate can be submitted. Time must be factored in to allow for the transmission of funds (which is usually out of money held in the Deceased’s bank(s) or building society account(s)) or by way of a loan, and receipt/acknowledgement by HMRC).

For Estates where an Inheritance Tax return is not required the application for probate can proceed straight away.

Following receipt of the grant of probate, The Legal Advisor can begin the process of administrating the Estate which may include the sale or gift of land and buildings, closure of financial assets, sale of shares and payment of the Deceased’s liabilities.

The Timescale of this process will depend upon the number of assets to administer. A closure of a bank account may be relatively straightforward, whereas the sale of shares or encashment of a bond or trust asset will require the completion of more complex documentation.

Once the Deceased’s estate has been administered, the Legal Advisor (in consultation with the Executor) will finalise the Estate Accounts which identify the receipts and payments to and from the Estate and the assets which are available for distribution. It may be that certain items of property such as personal possessions have already been passed to the intended recipient(s). It is also possible that smaller cash gifts have been made from the Estate prior to the finalisation of the accounts.

Once the Estate Account has been approved, the Executors can consider paying out the remaining legacies and bequests or finalising the transfer of property (such as houses, land, or shares).

It should be noted here that Executors can be liable personally for distribution of an Estate or part of it. Consequently, your Legal Advisor may delay distribution to allow for any period for a potential claim to arise, to lapse.

Probate costs:

If you would like us to collect and distribute the assets and ensure that the Deceased’s wishes are set out in their will are fully carried out in addition to obtaining the Grant of Probate as there will be additional charges. We estimate that the work will take between 10 and 20 hours work. Based on an hourly rate of £275.00 per hour plus VAT (currently at 20% = £330.00) the total cost would be estimated at £2750.00 plus VAT (currently at 20% = £3300.00) to £5,500.00 plus VAT (currently at 20% = £6600.00). The exact cost will depend on the individual circumstances of the matter.

We also charge an uplift when dealing with an administration of an estate of:

Where the firm is not an appointed executor:

0.5% plus VAT (currently at 20%) of the value of the house (if any);

1% plus VAT (currently at 20%) of the gross value of the other assets (i.e. all assets excluding the house).

Where the firm (or an employee) is an appointed executor:

0.75% plus VAT (currently at 20%) of the value of the house (if any);

1.5% plus VAT (currently at 20%) of the gross value of the other assets (i.e. all assets excluding the house).

Typical Disbursements incurred during an estate administration are:

Probate application fee of £273.00 (no VAT) plus £1.50 (no VAT) for every sealed copy.

Bankruptcy-only Land Charges Department searches (£2 (no VAT) per beneficiary)

£99.00 plus VAT (currently at 20% = £118.80) Post in The London Gazette – Protects against unexpected claims from unknown creditors (if you require this)

Approximately £255.24 plus VAT (currently at 20% £306.29) Post in a Local Newspaper – This also helps to protect against unexpected claims (if you require this)

Disbursements are costs related to your matter that are payable to third parties, such as court fees and we handle the payment of the disbursements on your behalf to ensure a smoother process.

Potential additional costs may be incurred if:

If there is no will or the estate consists of any share holdings (stocks and bonds) 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.

If any additional copies of the grant are required, they will cost £1.50 (no VAT) (1 per asset usually).

Estate Agents may need to be instructed to provide a valuation for the property.

Dealing with the sale or transfer of any property in the estate is not included.

How long will the process take?

On average, estates are dealt with within 10 – 18 months, depending on when the Property is sold and assets are realised. Typically, obtaining the grant of probate in less complicated estates takes approximately 16 weeks from the date on which we submit the application to the Probate Registry. Collecting cash assets then follows after the Grant is obtained. Once this has been done, we can on occasions, depending on circumstances, make an interim distribution.

More complex estates

Estates with a larger number of assets and beneficiaries, assets owned abroad, missing beneficiaries, estates requiring a full Inheritance Tax Return and any claims for transferable unused nil rate band or residential nil rate band, or other relief or exemption, will involve a great deal more work and the time involved will be greater.