Probate – Fees and Timeline

Probate Fees

Administration of Estates/Probate
Fees

Each of our Clients are unique during their lifetimes and so therefore not surprisingly after death so are their estates. Each estate will comprise different assets; some estates will have one bank account and some will have ten or more accounts, some will have complex investments or assets overseas, some will have no debt and others substantial debt. Similarly, some estates will pass entirely to one person with others having multiple beneficiaries. We also appreciate that some of those with the legal responsibility to sort it all out (executors/administrators) want to carry out a lot of the administration personally whilst others are happy to instruct professionals to deal with the entire administration.

We aim to give our Clients flexibility on the extent of our involvement in the administration of an estate. It is therefore difficult to provide a general one size fits all quote for our probate services as it will very much depend of the terms of the Will (if any), the number and type of investments and what level of service is desired. As such, we set out below a series of scenarios with some idea as to the costs involved with each. You may also wish to consider our guidance on the probate procedure and timeline which sets out some of the main stages in the administration process. We would however always encourage you to contact us to obtain a bespoke quote tailored to your needs and circumstances.

Grant Only Service

Some of our Clients want to personally obtain date of death valuations of assets and liabilities and ultimately administer the estate themselves. They do however want us to identify the correct inheritance tax procedure to follow, prepare the relevant inheritance tax account (where required) and make the application for the Grant of Probate or Grant of Letters of Administration.

As part of this service, we would

  • Provide you with a dedicated and experienced probate solicitor and a probate administrator to work on your matter.
  • Accurately identify the type of Probate application you will require.
  • Obtain the relevant documents required to make the application.
  • Complete the relevant HMRC forms (if required).
  • Draft the application for the Grant (including the legal statement).
  • Make the application to the Probate Court on your behalf.
  • Obtain the Grant of Probate/Grant of Letters of Administration.

In these circumstances and where there is a Will or Intestacy (where executors and administrators are known and have been located), we would charge the following fees.

Scenario 1

A Grant only service has been requested and the estate is eligible for the short form Inheritance Tax procedure (usually where the estate is not subject to Inheritance Tax – currently £325,000 – or where no Inheritance Tax is payable due to spouse or charity exemption).

In these circumstances, we would charge a fixed fee of £950.00 plus VAT (which at the current VAT rates would make an inclusive fee of £1140.00)

In addition there would be the following disbursements:-

  1. Probate Registry – probate fee – £300.00 (plus £1.50 per official copy- usually one per asset)

Please note that Joseph A Jones & Co have no control over the probate fees charged and these are subject to change.

Scenario 2

A Grant only service has been requested and the estate and a full Inheritance Tax return must be submitted to HM Revenue & Customs (usually where the estate is subject to Inheritance Tax or there are complexities such as extensive lifetime gifts or overseas assets).

In these circumstances, we would charge a fixed fee of £1750.00 plus VAT (which at the current VAT rates would make an inclusive fee of £2100.00)

In addition there would be the following disbursements:-

  1. Probate Registry – probate fee – £300.00 (plus £1.50p per official copy- usually one per asset)
  2. HM Revenue & Customs – Inheritance Tax – to be confirmed (For more information, see www.gov.uk/inheritance-tax)

Please note that Joseph A Jones & Co have no control over the probate fees charged and these are subject to change.

 

Full Administration Service

Dealing with the administration of a person’s estate can be very time consuming. The sheer volume of people, organisations and institutions who need to be notified of the death and the different procedures that must be followed by each can seem very overwhelming. This is particularly true where the executors/administrators of the estate are not familiar with the deceased’s financial affairs prior to death.

The executors and administrators are also personally liable for the administration of the estate so any failure by them including failure to pay a debt, failing to correctly identify a beneficiary or incorrectly completing Inheritance Tax accounts or returns may result in the executor/administrator being personally liable for those debts or penalties.

This is when instructing professionals can save you time, stress and worry. As a firm we have dealt with thousands of estates over the last few decades and our current partners in the Private Client department have combined experience of over thirty years of dealing with the administration of estates. You will also be assigned a Probate Administrator who is also on hand to support you along the way.

As part of our fee we will:

  • Provide you with a dedicated and experienced probate solicitor and probate administrator to work on your matter
  • Identify the legally appointed executors or administrators and beneficiaries
  • Notify all parties with whom the deceased held assets, owed liabilities or received income (such as pensions or benefits) of the death and obtain date of death valuations and instructions on how to close/transfer those assets
  • Assist you with any property in the estate such as dealing with utility bills, insurance, obtaining valuations for probate and assisting with arranging the property to be put on the market for sale
  • Arrange for the publication of s27 Trustee Act notices to protect executors/administrators against unexpected claims from unknown creditors.
  • Accurately identify the type of Probate application you will require
  • Complete the Probate Application and the relevant HMRC forms (if required)
  • Make the application to the Probate Court on your behalf
  • Obtain the Probate and any copies required
  • Collect all assets in the estate
  • Arrange for the payment of all liabilities in the estate
  • Notify HM Revenue & Customs of any additional income tax or capital gains tax that may be due for the administration period (or in complicated cases such as where untaxed income such as rent has been received instruct an accountant to complete the same).
  • Prepare the final estate accounts for approval by the executors
  • Distribute the estate to the beneficiaries

Our fees in this service are all calculated on an individual basis depending on the number of beneficiaries, the number of different assets, whether there are assets overseas, whether the deceased owned a property and whether there are any disputes about or claims on the estates. Wherever possible we prefer to agree a fixed fee for the administration of the estate so that our Clients do not worry about picking up the phone to us or asking for advice. We have set out a scenario below to show an example of the potential fee charged.

Scenario 3
  • 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 intangible assets
  • There are 1-3 beneficiaries
  • 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
  • There are no claims made against the estate
  • The estate is worth between £125,000 and £150,000

In these circumstances we would charge a fixed fee of £2,500.00 plus VAT (£3,000.00 at the current 20% rate of VAT). In addition to our fees there would also be the following disbursements.

  1. Probate application fee of £300 (plus £1.50 per official copy – usually one per asset)
  2. S27 Trustee Act notice in The London Gazette and Local Newspaper – £390 (approx.)
  3. Royal Mail – special delivery postage – £7.20
  4. Land Registry search – £3.00
  5. Land Charges search – £2.00
Scenario 4
  • There is a valid will
  • There is no more than one property
  • There are no more than 4 bank or building society accounts
  • There are no more than 2 unit trust/stocks and shares investments
  • There are no other intangible assets
  • There are 1-3 beneficiaries
  • 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 inheritance tax payable and the executors do need to submit a full account to HMRC
  • There are no claims made against the estate
  • The estate is worth between £325,000 and £400,000

In these circumstances we would charge a fixed fee of £6,000.00 plus VAT (£7,200.00 at the current 20% rate of VAT). In addition to our fees there would also be the following the disbursements listed in Scenario 3 above.

We would make a detailed calculation of the Inheritance Tax payable but in the meantime please see www.gov.uk/inheritance-tax for further information.

Potential additional costs

  • If there is no will or the estate consists of any share holdings (stocks and bonds) there is 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 there are any challenges to the Will or claims against the estate, additional charges will be made.
  • If there are business or agricultural assets then additional steps will need to be taken from both an Inheritance Tax perspective and an administration perspective.
  • Dealing with the sale or transfer of any property in the estate is not included.
  • Please note that Joseph A Jones & Co have no control over the probate court fees charged and these are subject to change.

Probate Procedures and Timeline

A Guide to the Probate Procedure (including timescales)

Stage 1

Pre Grant

  • Identify whether there is a valid Will and if so, determine the identity of the executors and beneficiaries. If not, identify the people entitled to act as administrators and the legal beneficiaries.
  • Notify all institutions, companies and people with whom the deceased had accounts, investments, loans, debts and from whom they received pensions, benefits or wages of the death and obtain date of death valuations of all assets and liabilities.
  • Make initial investigations into whether the deceased made any gifts in the seven years prior to their death or set up any trusts.
  • Look to protect any assets such as making sure that any properties are validly insured.

Stage 2

Obtaining the Grant

  • Once the extent of the assets and liabilities of the estate has been established, the Inheritance Tax account can be prepared. Generally if the estate is not subject to Inheritance Tax (and there are no complicating factors such as gifts with reservation of benefit, extensive lifetime gifts or trust involvement) a simplified procedure can be followed. In these cases a valuation of the estate is submitted to the Probate Registry with the application for the Grant.
  • If the estate is subject to Inheritance Tax or the criteria are not met for the simplified procedure a full Inheritance Tax return will need to be submitted. This is submitted directly to HM Revenue & Customs together with any Inheritance Tax due.
  • A statement will also need to be prepared and signed by the executors/administrators confirming that they are the people entitled to the Grant and that they will administer the estate faithfully which will be sent to the Probate Registry.
  • Once these documents have been submitted, unless there are any complications or challenges, the Grant of Probate (where there is a Will) or a Grant of Letters of Administration (where there is not a Will) will be issued.
  • These Grants are court orders proving that the Executors/Administrators have the legal authority to deal with the estate.

Stage 3

Administering the estate

  • Once the Grant has been obtained, the executors/administators can then begin the full administration of the estate including closing any bank or building society accounts and selling investments or property.
  • All debts and liabilities will need to be paid as a first priority of the estate.
  • Legacies can then be paid to beneficiaries as per the Will.
  • Once all assets have been collected in and all liabilities have been paid, the executors/administrators need to make sure that any income tax or capital gains tax due for the administration period is declared and paid to HM Revenue & Customs.
  • Final estate accounts can then be prepared showing all payments received by or paid from the estate together with the amounts due to the beneficiaries.
  • All residuary beneficiaries can then be paid their entitlement and the estate wound up.

Timescales

Depending on the complexity of the estate and the quality of the information left by the deceased regarding their financial affairs, it usually takes between 4 and 8 weeks to complete the Pre-Grant investigations and notifications and then a further 1 to 2 weeks to be in a position to sign the Inheritance Tax account/return.

Once the executors/administrators have signed the Inheritance Tax account/return and application for probate, the timeframe for receiving the Grant depends on whether the estate was eligible for the simplified procedure or whether a full Inheritance Tax account was required.

If an estate is not taxable and is eligible for the simplified procedure, it usually takes a further 2 weeks to receive the Grant of Probate/Letters of Administration from the Probate Registry.

If an estate is taxable and/or a full Inheritance Tax account is required, it usually takes between 3 to 6 weeks for HM Revenue & Customs to receipt the return and acknowledge the tax payment. It will then take a further 2 weeks for the Probate Registry to issue the Grant of Probate/Letters of Administration.

The timeframe for then administering an estate is very much dependent on the assets in that estate (particularly if there is a property to be sold). You should also be aware that as a matter of good practice an estate should not be distributed until a period of 6 months has elapsed from the date of the Grant of Probate/Letters of Administration. This is because anyone wanting to challenge the Will or make a claim against the estate must do so before the 6 month period has elapsed. An executor/administrator is therefore protected against such claims for which they may otherwise become personally liable.

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