Administration of an Estate Costs

Dealing with the affairs of someone who has died is often a difficult and emotional task. Administering an estate can take considerable time and engage complex legal and emotional issues. As an executor or Personal Representative you have responsibility to ensure an estate is properly administered, failing which you can become personally liable for any losses suffered by the beneficiaries. We therefore strongly recommend that you obtain some legal advice from the outset, to ensure you are aware of what is involved and your responsibilities.

The Solicitors Regulation Authority (SRA) launched new Transparency Rules in December 2018 with the aim to ensure that people have accurate and relevant information about a solicitor or firm whey they are considering purchasing legal services to assist them in making an informed choice about who to instruct. More information about the Transparency Rules an be found on the SRA website.

We have a large and experienced Wills, Trust and Probate team. We are able to advise in relation to all aspects of Wills, Trusts and Estate administration. Below we have set out further guidance upon the likely fees to be incurred in relation to the administration of an estate with assets within the UK. If you require assistance with any other Wills, Trust and Probate related issues please feel free to contact the team.

Our Service

Each estate is unique

As with every individual, each estate to be administered is unique. The amount of work depends on factors such as whether or not there is a Will, the number, nature and location of assets and liabilities and also the number and location of beneficiaries.

We take into account whether or not the estate is subject to Inheritance Tax, the likely tax implications based on where the deceased was considered to have been domiciled, whether there are any business or agricultural interests and/or foreign considerations. If there is no Will, investigations must be made about the deceased’s family and who the rightful beneficiaries are under the rules of intestacy. We also need to consider if there have been any lifetime gifts, whether any trusts arise under the Will or intestacy provisions.

If there are any problems with the Will such as concerns about the capacity of the person who made it, issues with the signing, whether a Will is the last one made or if people have been left out that might have expected to be mentioned, these are likely to significantly increase the amount of work needed. We have a specialist team of lawyers who deal with disputes surrounding Wills and estate administration who will be able to help guide you through the process and whose fees will be discussed with you at the relevant time.

What is involved?

For a clearer understanding of the work required to administer an estate, please refer to our ‘Stages of Estate Administration’ Guide.

The help you need

We can offer a full administration service or provide as much or as little help as you need. For example, you may be happy to collect all the information in Stage 1 of the process yourself and just ask us to help with the Inheritance Tax forms and application for the Grant. Alternatively, you may wish to instruct our team to assist you with the entire process. We are happy to discuss and accommodate your specific needs.

Our charging structure in Probate

The number of variables and therefore amount of work will affect our fees, please see more details below.

Whereas some other law firms and estate administration companies charge a percentage of the estate, often in addition to the amount of time they spend, we believe that this is not an accurate or fair way of charging. Likewise, those that offer fixed fees may often have to over-charge to cover contingencies or effectively “cut corners” or use unqualified and poorly supervised staff to make the work profitable. Consequently, our estimates are calculated on a time spent basis.

Our team

We benefit from having a broad range of experience and qualification of lawyers within the team who charge their time at different rates. Our fees are calculated based upon the hourly rates applicable at the relevant time based upon experience. Our team’s hourly rates currently range from £125 – £350 plus VAT*.

For full details of our Wills, Trust and Probate team, their qualifications and hourly rates please follow this link

*Please note we will charge VAT on top of our costs for the work we carry out for you. VAT is currently charged at 20%

Initial “no obligation” discussion

We offer an initial “no obligation” discussion, so that we can gather enough initial information to provide an estimate and guidance on what work may be required. If we are instructed to proceed, the time spent in those discussions will be included in the costs charged to the estate.

Estimate of our charges

Below are some illustrations of what our charges might be to deal with the collection and distribution of money, property and other assets where all the assets are in England and Wales and there are no contentious matters. As noted above, we charge on a time spent basis in accordance with the hourly rate of the lawyer assisting with your matter. Below, we have presumed a mid-level charge out rate of £270. All our charges are plus VAT, which is currently charged at 20%.

Estate with a Will and not taxable

The below estimate is for an estate where:

There is a valid will.
There is no more than one property.
There are no more than 2 bank or building society accounts.
There are no other tangible assets.
There are 1 – 2 beneficiaries.
There are no disputes between beneficiaries on division of the 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.
There are no claims against the estate.

In a case of this type, we would expect to spend between 10 – 20 hours, which presuming it was dealt with by a mid-range lawyer with an hourly rate of £270 would incur fees of between £2,700 – £5,400 plus VAT*. There may be additional costs payable to third parties, such as HMRC, Probate Registry etc, which are further detailed below.

*Please note we will charge VAT on top of our costs for the work we carry out for you. VAT is currently charged at 20%

Estate without a Will and not taxable

The below estimate is for an estate where:

There is no valid will and the estate is intestate
There is no more than one property.
There are no more than 2 bank or building society accounts.
There are no other tangible assets.
There are 1 – 2 beneficiaries.
There are no disputes between beneficiaries on division of the 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.
There are no claims against the estate.

In a case of this type, we would expect to spend between 15 – 25 hours, which presuming it was dealt with by a mid-range lawyer with an hourly rate of £270 would incur a fee of between £4,050 – £6,750 plus VAT*. There may be additional costs payable to third parties, such as HMRC, Probate Registry etc, which are further detailed below.

*Please note we will charge VAT on top of our costs for the work we carry out for you. VAT is currently charged at 20%

Estate with a Will and subject to Inheritance Tax

The below estimate is for an estate where:

There is a valid will.
There is no more than one property.
There are no more than 2 bank or building society accounts.
There are no other tangible assets.
There are 1 – 2 beneficiaries.
There are no disputes between beneficiaries on division of the assets. If disputes arise this is likely to lead to an increase in costs.
There is inheritance tax payable and the executors need to submit a full account to HMRC.
There are no claims against the estate.

In a case of this type, we would expect to spend between 30 – 40 hours, which presuming it was dealt with by a mid-range lawyer with an hourly rate of £270 would incur a fee of between £8,100 – £10,800 plus VAT*. There may be additional costs payable to third parties, such as HMRC, Probate Registry etc, which are further detailed below.

*Please note we will charge VAT on top of our costs for the work we carry out for you. VAT is currently charged at 20%

Estate without a Will (intestate) and subject to Inheritance Tax

The below estimate is for an estate where:

There is no valid will and the estate is intestate.
There is no more than one property.
There are no more than 2 bank or building society accounts.
There are no other tangible assets.
There are 1 – 2 beneficiaries.
There are no disputes between beneficiaries on division of the assets. If disputes arise this is likely to lead to an increase in costs.
There is inheritance tax payable and the executors need to submit a full account to HMRC.
There are no claims against the estate.

In a case of this type, we would expect to spend between 30 – 45 hours, which presuming it was dealt with by a mid-range lawyer with an hourly rate of £220 would incur a fee of between £8,100 – £12,150 plus VAT*. There may be additional costs payable to third parties, such as HMRC, Probate Registry etc, which are further detailed below.

*Please note we will charge VAT on top of our costs for the work we carry out for you. VAT is currently charged at 20%

The exact cost of us acting in an estate administration will depend upon the individual circumstances of the matter. For example, if there are numerous properties, complex assets, numerous beneficiaries or some other form of complexity then our charges and other costs and disbursements will be higher than stated above. A case-specific estimate can be obtained by contacting us and having a no-obligation discussion, as outlined above.

Whilst we try to provide an accurate estimate at the outset it is not always possible to foresee every eventuality and so our estimates may need to be revised as the matter progresses.

There may be a requirement for additional information from certain companies, missing documentation (e.g. share certificates), government department enquiries especially regarding Inheritance Tax, property sales falling through, family disputes which arise during the administration period, claims against the estate, debts and/or gifts the family are unaware of and time spent dealing with enquiries from the executor and beneficiaries over and above what is usually expected.

Other costs and disbursements

We often have to pay fees to other organisations such as the Probate or Land Registry and the most common examples are shown below. These are due from the estate and are in addition to our charges.

Land Registry Office Copies of titles to property (per title) – £3 + VAT*
Probate Court Costs – £273 plus £1.50 for every additional copy of the Grant
Notice inviting creditors to come forward (estimate only and not always necessary) – from £100
Bankruptcy Searches of Executors and Beneficiaries – £2 plus VAT*
Asset searches – costs vary but average is £185 plus VAT*

* VAT is currently charged at 20%

If a property is sold or transferred you may require the services of our Property department and if so, they will provide a separate costs estimate. For their pricing information please see here.

How long does probate administration take?

It is always difficult to predict how long it will take to complete the administration of an estate.

In our experience even the simplest estates will usually take around six months. Most estates will take at least twelve months, possibly longer, to be administered.

If there are difficulties, for example, assets which cannot be realised quickly, or where the valuation is uncertain and figures have to be agreed with HMRC, the administration can take much longer than twelve months.

While we endeavour to progress the administration of the estate as quickly as we can, we are dependent on responses from HMRC, from those valuing assets, and from those providing us with information which we need to ask for.

We will always keep you updated and explain the steps that need to be taken.

Adding value to you and future generations

We aim to add value by advising beneficiaries about the opportunities for their own tax or estate planning. These costs would be in addition to the estate administration charges.

Who will carry out my work?

The level of complexity of the estate (as to the type of assets held and their value), will determine who carries out the work on your claim. Typically, a simple estate will be dealt with by a solicitor/Paralegal, supervised by an associate or senior associate, whereas a more complex claim will be dealt with by either an associate or senior associate, supervised by a partner.

Please click here for further details of the experience and qualifications of the individuals who may work on your claim.