Probate

The first stage in the administration process involves writing to the various banks and organisations to obtain probate valuations of each of the assets and liabilities in the estate. This aspect of our work may in some cases involve arranging for probate valuations to be carried out by stockbrokers (for shares) and by estate agents (for property).

During stage one we will also provide you with advice regarding the additional searches and information gathering we recommend. It also involves writing to pension providers to obtain certain information about pension plans and HMRC regarding lifetime tax which will be needed to complete the probate forms later. We can usually arrange for one of the banks to release a cheque to pay for the funeral invoice. Once the banks are notified of the death the accounts will be frozen until the Grant of Probate/Letters of Administration are obtained and the only funds that can be released are to pay for funeral expenses and or inheritance tax. This is not essential but makes the overall process much easier for you and your family.

Stage one usually takes between twelve to sixteen weeks depending on how long the relevant organisations take to supply us with the information and further, dependent upon the size of the estate. In some cases, it may take longer than this, but we will keep you updated of the timeframe throughout the process.

This stage involves drafting the probate forms PA1P/PA1A, the Legal Statement and any relevant tax forms.

The Probate Application and/or Legal Statement and accompanying forms are then sent to the Probate Registry for inspection. In most cases the Grant of Probate/Letters of Administration is issued within 4-6 months of receipt by the Registry. Occasionally, the Registry may raise further enquiries or request that extra forms or statements are to be signed by the Executors/Administrators.

Once the Grant of Probate is received, stage three involves registering the Grant of Probate with the various banks and organisations and asking them to close the account/asset in question. It may also involve arranging for the sale of shares and property.

Once the assets have been released and there is cash available, any outstanding bills or debts relating to the estate will then be paid. Confirmation will be sought from the organisations in question that no further sums are due from the estate, to ensure no further payments will be required.

Stage three usually takes in the region of six to eight weeks but may be longer if there are substantial assets in the estate or if shares have to be sold.

In cases where a property has to be sold the process can take much longer. Since a buyer must be found, and the transaction completed, it is impossible to pinpoint how long this can take.

Once the assets have been cashed in and all bills have been paid, we can move to the fourth and final stage of the administration process: winding up the estate.

This stage involves the following:

• Finalising the income tax position with Inland Revenue and paying any additional income tax that may become due for the administration period.
• Ensuring that the DWP’s “2 month” rule has expired. The Department for Work and Pensions (DWP) have two months from the date of the Grant of Probate/Letters of Administration to make a claim against the estate.
• Preparing the final estate accounts and distributing the estate to the beneficiaries or transferring assets such as property/shares into the names of beneficiaries.

The timescale for stage four varies greatly depending on the size of the estate and other factors. Typically it can take between three to five months, but this can be longer in exceptional cases. Delays are unavoidable sometimes, especially if tax affairs are complicated, but we do all we can to ensure everything runs as smoothly as possible.

Overall, the entire process of Probate for a typical estate (which is liable for inheritance tax) can take anywhere between 12 and 18 months to administer, longer if there is a property to sell, delays occur, or other exceptional circumstances.

For support and legal assistance with any stage of the process, please get in touch for a consultation. This can be a difficult time for a family, so bringing in experts like us will help you get through it.

Our hourly charging rates are £242 plus vat (totalling £290.40) to £282 plus vat (totalling £338.40) per hour depending upon the person dealing with your file (this applies for all fees).

Secondly, there is a charge of £24.20 plus vat totalling £29.04 - £28.20 plus vat totalling £33.84 for each letter or email written and for each telephone call made and received.

Thirdly, there is a charge of £12.10 plus vat totalling £14.52 - £14.10 plus vat totalling £16.92 for each letter or email received.

Our Typical Fees & Disbursements

In addition, there is a value element of 1% of the gross estate added to the charge. This is because the value reflects the importance & complexity of the matter.

* The hours charged are based on an average administration of an estate is between 10-25 hours work at the above hourly rates. There are certain circumstances where the cost may be higher due to additional complexities and / or if inheritance tax is payable and this will be discussed with you, if applicable. In these circumstances, hours worked may increase up to 45 hours, totalling £12,690.

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.
• We do not believe that it would be sensible to attempt to provide at this stage an estimate of any tax that may be payable. We would advise you to look on the HMRC Website to calculate Inheritance Tax which may be due, the calculators can be found at: https://www.gov.uk/guidance/
• Please note that dealing with the sale or transfer of any property in the estate is not included as part of the above fees and will incur an additional cost.

There are also optional common disbursements that may be applicable to your case which are:

• 1. Financial asset searches. Costs start from £165 plus vat, totalling £198
• 2. Will searches. Costs range from £50 plus vat totalling £60 to £99 plus vat, totalling £118.80.
• 3. Section 27 Notices. Costs range from £200 plus vat totalling £240 to £350 plus vat, totalling £450
• 4. Estate Agent valuation fees. Costs start from £100 plus vat, totalling £120
• 5. Land Registry fees up to £60 plus vat, totalling £72

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.

Finally, there is a value element of 1% of the gross estate added to the charge. This is because the value reflects the importance & complexity of the matter.

Please note that dealing with the sale or transfer of any property in the estate is not included as part of the above fees.

Here are all parts of the process that these fees cover:

• Obtaining the Grant of Probate/Letters of Administration
• Collecting all assets of the estate
• Discharging all liabilities of the estate
• Preparing Estate and Distribution Accounts
• Distributing legacies to any and all beneficiaries