Estate administration pricing

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 of £3,000. VAT (currently at 20%) is charged in addition, as are any disbursements.

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 £273 (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 £2.40 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 fee would be in the region of £3,975 made up as follows:
Our fees: £3000 (minimum applies)
VAT: £600
Disbursements (say): £375
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 fee would be in the region of £8,625 made up as follows:
Our fees: £6,875
VAT: £1,375
Disbursements: (say) £375
Additional administration expenses may also be payable by the estate, depending on the circumstances.

In a typical case where a person left £1.5million the total fee would be in the region of £49,875 made up as follows:
Our fees: £41,250
VAT: £8,250
Disbursements (say): £375
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.

However, in cases where the estate exceeds £1million please speak to us as we may be able to offer a discount on our usual fixed fee. 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. 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.
• 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).
• Finalise the income tax position of the deceased.
• 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

On average, estates are dealt with within 12 months. The timescale may be longer than this due to factors outside our control. Typically, getting to the stage where it is possible to apply for the grant of probate takes around three months at the start of this process.

Details of lawyers who may work on the matter

Details of supervisors