Will, Trusts and Probate

Handling the estate of a loved one can be an overwhelming and emotional experience, made especially challenging given the complex legal issues and procedures which may arise.

Our Private Client Department is led by Douglas Smith, a Solicitor and Partner at the firm with over 30 years’ experience administering estates, including those of a complex nature with assets outside of the UK, and the intricacies of inheritance tax (‘IHT’) and the available reliefs. We can therefore assist by providing sensitive, transparent and efficient service in all matters of probate. Please read on for a summary of our services and indicative fee estimates. Please note that the following fee estimates are based on the amount of work and time a standard matter will involve. Our actual fees will be based on a time incurred basis.

Grant of probate only applications - £1,500 to £6,000 plus VAT

Where you otherwise feel confident to administer estate assets yourself, we can assist in applying for and obtaining grant of probate.

This will include:

• Taking initial instructions
• Reviewing the will
• Notifying banks, building societies, life insurance companies, investment advisors, or any other institutions holding assets belonging to the deceased, of the death of the deceased
• Locating any creditors of the deceased
• Preparing probate application
• Assisting in valuing the deceased’s assets
• Submitting the probate application and obtaining the grant of probate

In a simple estate with no complex assets and which is an excepted estate for IHT purposes, once the grant of probate has been obtained you should be able to administer the estate and arrange for the assets to be transferred and/or distributed to the beneficiaries in accordance with the deceased’s will.

If the deceased died intestate (i.e. without leaving a will), we can also assist in obtaining the grant of letters of administration. This is likely to be more time-consuming and we would therefore usually estimate a fee of between £3,000 to £7,500 plus VAT and disbursements, depending on the deceased’s family members and the assets involved.

Full administration of the estate

The above fee estimate encompasses those matters where in addition to obtaining the grant of probate, we will deal with the administration of the estate, and transfer or distribution of assets. This will be applicable where the estate is that of an unmarried individual, or in respect of a married couple following the death of the first spouse, and the estate is simple (i.e. the deceased owns one property solely or jointly with a spouse, has 2-3 bank accounts and holds only more usual investments such as shares in a publicly listed company).

This will include the services provided by us in grant only applications, as referred to above, as well as:

• Placing notices for claimants and creditors to the estate in accordance with the Trustee Act 1925
• Arranging for the realisation of assets
• Arranging for the deceased’s liabilities and the expenses incurred in administering the estate to be paid
• Payment of any cash legacies or the transfer of any specific legacies to the beneficiaries concerned and the distribution of the deceased’s residuary estate to the beneficiaries entitled by the deceased’s will
• Preparing a simple cash statement showing the financial transactions which have occurred during the administration period and the amount available for distribution to the residuary beneficiaries
• Considering and advising on tax implications of distributions

In addition to those services listed above, this will include:

• Preparing draft IHT return and sending the same to the executors for their comments and/or approval
• Liaising with the executors in relation to the IHT liability arising, if any, and arranging for any necessary payment of IHT to HMRC on the basis of form IHT423 and/or from alternative sources as necessary
• Submitting IHT return to HMRC
• Dealing with any basic questions or queries raised by HMRC in respect of the IHT return

Please note, should HMRC raise more queries than usual in relation to the IHT return, the fee estimate range indicated above will be subject to an increase. We will discuss this with you should this become necessary.

This will be applicable if a full set of estate accounts is required, having regard to the complexity or number of residuary beneficiaries entitled to the estate. It may be advisable to prepare a full set of estate accounts where the deceased’s assets are numerous or complex in nature, or there are more than 3-4 beneficiaries to which to account.  We can discuss this with you if you feel that this is relevant.

All services listed above will be included together with the preparation of a full set of estate accounts for the approval of the beneficiaries, including the usual form of release and discharge for them to sign in favour of the executors.

Additional fees will be charged if, in addition to the above, the estate includes any or all of the following:

• Deceased’s assets include shares in private businesses (including farm and agricultural businesses)
• Deceased’s assets include artwork, copyrights, a large number of properties or any other asset which will require valuation
• Lifetime gifts which are taxable, where the IHT calculations will need to include the appropriate amount of IHT taper relief
• Where there are additional IHT considerations and compliance for the deceased’s estate and the trustees of the trust such as, where the deceased held a qualifying life interest in settled property or where the deceased had reserved a benefit in an asset which he or she had given away during their lifetime
• Deceased’s estate includes assets in other jurisdictions
• Intestacy

Other complexities may arise which could give rise to increased fees. Please contact the Private Client Department for a tailored fee estimate.

Disbursements

Likely disbursements to be incurred in the administration of an estate include, but are not limited to:

• Land Registry Official Copies of Title (£7 each)
• Asset search fees (£150 - £300 plus VAT)
• Advertising fees in respect of Trustee Act Notices (£200 -£300 plus VAT)
• Probate fee (£300)
• Extra copies of the grant of probate (£1.50 each)
• Bankruptcy searches prior to distribution (£2 per name)

Time estimates

The time required to administer an estate will depend on a number of factors, including the nature and quantity of assets, applicable tax legislation and the number of beneficiaries. In the case of a simple estate, it can take up to 3-4 months to obtain the grant of probate, and a further 6 – 12 months to distribute assets. In the case of a more complex estate, it can take over 12 months for the estate to be administered.

A time estimate will be provided at the outset of any matter, and updated throughout, so that you are kept updated of all progress in the administration of the deceased’s estate.