Probate: Understanding the Estate Administration Steps

Probate

When someone dies, their assets usually need to be collected, their debts and tax paid, and the balance distributed to the right people. If they left a Will, the executors named in it apply for a grant of probate so they have legal authority to deal with banks, land registry, HMRC and others. If there is no Will, the next of kin or another suitable person applies for a grant of letters of administration. The process of administering the estate—from obtaining the grant to final distribution—is often referred to as “probate” or “estate administration.”

We can act for executors or administrators at every stage. We help identify assets and liabilities, complete the inheritance tax account (IHT400 and related forms) and any other tax returns, prepare the application for the grant of probate or letters of administration, and correspond with banks, building societies, pension providers and HM Land Registry. We collect in the estate, settle debts and tax, and then distribute the estate in accordance with the Will or the intestacy rules. We keep clear records and can prepare estate accounts for the beneficiaries and for the Court if required.

Acting in probate matters can be time-consuming and stressful, especially when you are also grieving. Handing the legal and administrative work to us allows you to focus on family while we ensure the estate is dealt with correctly and on time.

How much will it cost to obtain the Grant of Representation?

If we are required to prepare the Inland Revenue full Accounts due to the size of the Estate or if there is IHT payable, our charges will be calculated on the time spent dealing with your matter. We estimate that approximately 7-8 hours of chargeable time will be required, however this does vary significantly depending on the complexity of the matter. We will give you an estimate once we know the extent of the matter.
The current hourly rate of our Wills and Probate Solicitor, is £315 plus VAT per hour. You will be given notice if this fee changes.
Our services involved in obtaining the Grant of Representation consist of:
• Identifying who is the Personal Representative of the Estate and which type of application you will require in terms of applying for the Grant of Representation;
• Collating all the relevant information from you, to enable us to make the application;
• Preparing the relevant paperwork to submit to the Probate Registry on your behalf;

How much will it cost to deal with the full administration of an Estate?

For us to deal with the full administration of an Estate, our services would consist of:
• Identifying who is the Personal Representative of the Estate and which type of application you will require in terms of applying for the Grant of Representation;
• Obtaining the relevant information from asset and liability holders, to enable us to make the application;
• Preparing the relevant paperwork to submit to the Probate Registry on your behalf;
• Arranging the payment of IHT, if required;
• Sending the original Grant of Representation to be lodged with the relevant asset holders;
• Collecting in the sums due and settle any liabilities;
• Placing Trustee Act Notices in the local newspaper and the London Gazette to protect Personal Representatives against any beneficiaries or unknown creditors.
• Preparing the Estate Accounts and distributing to the beneficiaries.
Our charges will be calculated on the time spent dealing with your matter. The time from the date of instruction to completion of the administration will vary from case to case. As a general guide, the total time spent on administering an average Estate (upon which no IHT is payable) is usually between 10-20 hours. On Estates which are more complex or where full Inland Revenue Accounts are required, the estimated time is likely to be between 15-35 hours.
The current hourly rate of our Wills and Probate Solicitor is £315 plus VAT per hour. You will be given notice if this fee changes.
In accordance with the Law Society’s suggested guidelines, an additional percentage may be made on our final bill, based on the gross value of the assets collected or transferred; the maximum percentages that will be applicated in this case are 0.5% on the residence and 1% on the remaining assets. VAT is added to these charges.

How long will it take to administer the whole Estate?

Again, this will vary from case to case. Much will depend on the number and nature of the assets involved, the number of Beneficiaries and whether any problems arise, for example, regarding the interpretation of the Will, or regarding taxation matters. If a claim is made against the Estate by a relative or some other person, this can significantly increase the time spent administering the Estate.
A simple Estate may be finalised within 6 months, whereas a complex matter with more work involved could take between 1-2 years before it is brought to a conclusion.

Disbursements payable to third parties:

Please note that there will also be certain other additional expenses which we will have to pay to other organisations on your behalf. The main such expense is the Probate Registry application fee of £300. Official copies of the Grant are £16 for each copy.
(If the net Estate is valued under £5,000, the Registry fees are exempt.)
We recommend that our Clients place Trustee Notices in the local newspaper and London Gazette. This fee varies but is usually in the region of £200-£300. We will obtain a quote for you before the order is made