Probate is the court-supervised process of gathering a deceased person’s assets, paying debts and taxes and distributing what is left to those who are named as inheritors, in the Will.
Uncontested probate is where there is no dispute over the Will and distribution of assets.
Below we provide you with information on our Legal Fees, disbursements and the length of time it will take to complete your matter.
Legal Fees and Disbursements
Legal Fees are the amount you will be required to pay for all the work performed by us in actioning your instructions from commencement of your case to conclusion.
VAT will be payable on our fees and some disbursements, currently 20%, and we will clearly confirm which disbursements carry VAT in our formal quotation or as we advise you to incur them.
If your matter becomes complex (see below) our fees may increase further and we will notify you in advance of any increased costs.
Grant of Probate and Estate Administration Costs
In order to deal with assets in an estate, the Personal Representatives of the estate will often need to apply for a Grant of Representation. This is a legal document issued by the High Court which authorises the Personal Representatives to administer the estate of a deceased person.
If there is a Will, the Grant is called a Grant of Probate. If there is no Will the Grant is called a Grant of Letters of Administration.
Most financial institutions require sight of a Grant before releasing funds. If the deceased owned a property or shares, a Grant will definitely be required.
Orwins offers two levels of service: Grant only Service; and Full Estate Administration Service.
Application for a Grant of Probate or Letters of Administration Only
Our Grant Only service can be a cost-effective way to obtain a Grant for an estate where the Personal Representatives are willing to be responsible for dealing with all the assets and liabilities of the estate themselves.
Using this service, Orwins will draft an application for a Grant on behalf of the Personal Representatives. Once the Grant has been obtained, the Personal Representatives will be responsible for dealing with the estate.
Cost
Our Grant only fees are:
• Where a full HMRC report (IHT400) is not required, our fees typically start from £3,000.00 to £5,000 plus VAT (£3,600.00 - £6,000.00 inc. VAT) plus disbursements
• Where a full HMRC form (IHT400) is required, our fees typically start from £4,000.00 to £6,000 plus VAT (£4,800.00 - £7,200.00 inc. VAT) plus disbursements
Disbursements
Disbursements are costs related to your matter that are payable to third parties, such as court fees. We handle the payment of disbursements on your behalf to ensure a smoother process.
Typical disbursements include, but are not limited to:
• Probate application fee (estates over £5,000): £300.00
• Additional copies of Grant: £16 per copy
• Client ID check £6.00 (no VAT)
• Bankruptcy-only Land Charges Department searches £6.00 per beneficiary (no VAT)
• Bankruptcy & ID check £12.00 per beneficiary (no VAT
• Post in the London Gazette: typically, £100
• Post in a Local Newspaper: typically, £100 - £250
What Orwins will do for you
• Meet with you to obtain details and correspondence in relation to the estate;
• Ascertain the various assets and liabilities for the deceased;
• Obtain date of death valuations for the deceased’s assets;
• Liaise with other professional advisers as necessary;
• Consider the asset valuations and other information in order to consider whether a form IHT400 and supplementary pages is needed;
• Prepare the Probate Application, submit any required paperwork to HM Revenue & Customs, make an application to the Probate Registry and obtain a Grant of Probate.
Our average fees assume that:
a) The transaction is concluded in a timely manner and no unforeseen complication arise.
b) All parties to the transaction are co-operative and there is no unreasonable delay from any parties providing documentation.
We will not:
Please note, our instructions are limited to obtaining the Grant of probate or Letters of Administration and not dealing with any further work, such as collecting in the assets, paying liabilities and making distributions.
If after the Grant of Probate is received you instruct us to complete any further work, we will advise you of the costs separately.
Timescale
Typically, obtaining a Grant can take anywhere between 4-12 months. There are many variables that can affect the time it takes to obtain a Grant. Such variables include:
• Difficulties in valuing assets
• Time waiting for instructions or information from the Personal Representatives
• Time taken for HMRC to give permission for Grant to be obtained (where the estate is subject to Inheritance Tax)
• Time taken for Probate Registry to issue the Grant
• If an investigation is required because the estate is not as straightforward as initially thought, e.g. an investigation by HMRC
Full Estate Administration Service - The Application for the grant, collecting and distributing the assets
Using this service, Orwins will apply for the Grant. Once the Grant has been obtained, Orwins will then wind up and distribute the estate on behalf of the Personal Representatives in line with the terms of any Will, or the intestacy provisions if there is no Will.
The cost of dealing with the full administration of an estate will vary depending on the terms of the Will (where there is one), the size and complexity of the estate and the type of assets involved.
Cost
As a guide, the fees for full estate administration typically start from £6,000 – £8,000 plus VAT (£7,200.00 - £9,600.00 inc. VAT) plus disbursements for a very straightforward estate whilst fees for complex estates can exceed £20,000 plus VAT (£24,000.00 inc. VAT) plus disbursements
The cost for administering is determined by a number of factors. The exact cost will depend on the individual circumstances of the matter. Factors that may influence the cost of administering an estate include:
• Number of beneficiaries
• Number of bank accounts and investments
• Complexity of tax position
• How much work the Personal Representatives wish to do themselves
• Number of shareholdings
• Number of properties
• Foreign, business or agricultural assets
What Orwins will do for you
• Meet with you to obtain details and correspondence in relation to the estate;
• Ascertain the various assets and liabilities for the deceased;
• Obtain date of death valuations for the deceased’s assets;
• Liaise with other professional advisers as necessary;
• Consider the asset valuations and other information in order to consider whether a form IHT400 and supplementary pages is needed;
• Prepare the Probate Application, submit any required paperwork to HM Revenue & Customs, make an application to the Probate Registry and obtain a Grant of Probate.
• Notify the beneficiaries of their respective entitlements under the terms of the Will if needed and correspond with them accordingly in relation to the estate;
• Realise the estate assets and discharge the estate liabilities;
• Distribute the estate to those entitled under the Will, or intestacy;
• Liaise with Personal Representatives throughout.
Our average fees assume that:
c) The transaction is concluded in a timely manner and no unforeseen complication arise.
d) All parties to the transaction are co-operative and there is no unreasonable delay from any parties providing documentation.
Disbursements
Disbursements are costs related to your matter that are payable to third parties, such as court fees. We handle the payment of disbursements on your behalf to ensure a smoother process.
Typical disbursements include, but are not limited to:
• Probate application fee (estates over £5,000): £300.00
• Additional copies of Grant: £16 per copy
• Client ID check £6.00 (no VAT)
• Bankruptcy-only Land Charges Department searches £6.00 per beneficiary (no VAT)
• Bankruptcy & ID check £12.00 per beneficiary (no VAT
• Post in the London Gazette: typically, £100
• Post in a Local Newspaper: typically, £100 - £250
Other Costs
• To comply with anti-money laundering legislation and satisfy our regulatory commitments, we carry out online bankruptcy and identity checks on all clients and, in probate matters, on each beneficiary. Our fee for this is £12.00 per beneficiary (no VAT). This fee is payable on all cases and is in addition to the fees quoted above.
• We will charge the sum of £10.00 plus VAT (a total of £12.00 Inc. VAT) for electronic money transfers.
We Will Not
• Deal with the sale or transfer of any property in the estate – please see below*.
Timescale
Typically, administering an estate can take anywhere between 6-18 months. Several factors can impact upon the length of time it takes to finalise an estate. Potential factors can include:
• Difficultly in valuing assets
• Time waiting for instructions or information from the Personal Representatives
• Time taken for HMRC to give permission for the Grant to be obtained (where the estate is subject to Inheritance Tax)
• Time taken for Probate Registry to issue the Grant
• If an investigation is required because the estate is not as straightforward as initially thought, e.g. an investigation by HMRC
• Difficulty selling property
• Difficulty in locating share certificates
• Time taken to settle Inheritance Tax or Capital Gains liabilities and obtain clearance from HMRC
• Difficulty in locating beneficiaries
• Difficulty in locating assets
Potential additional costs
Unfortunately, it isn’t always possible for us to identify any issues that may increase your costs when you first instruct us to act for you. However, if the following issues arise, they are likely to increase the legal fees payable and the time the matter will take: –
• 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,
• Where there is property abroad,
• Where there are existing trusts
• Where there is Inheritance Tax (IHT) to pay**
• Where the beneficiaries require incidental advice such as varying the terms of the Will for IHT purposes,
• If there are multiple beneficiaries, properties and multiple bank accounts
• An investigation by the Department of Work and Pensions,
• Where there is a business interest,
• Where we are required to carry out regular inspections of a property,
• Where there are numerous beneficiaries or beneficiaries that cannot easily be traced,
• Where there are many bank and/or building society accounts,
• Where a claim is intimated or brought against the estate,
• Where the executors cannot work together and agree their instructions to us.
• Not having all of the paperwork available, or having missing or incorrect information that needs investigation and correction
• Having to arrange valuations of assets
• Third parties not responding to our communications promptly
*Additional charges will be incurred if there is a property to transfer or dispose of. We will be happy to offer a fixed fee for any conveyancing transaction.
Estates over £325,000 may be subject to Inheritance Tax at the prevailing rates. **To help you decide whether any Inheritance Tax is likely to be due or not, you can visit:
https://www.gov.uk/valuing-estate-of-someone-who-died/estimate-estate-value
At times it may become necessary to increase the cost estimate. This may, for example, be because further large assets and/or foreign assets are discovered, a beneficiary has moved and requires tracing, a party to the proceedings (i.e. a joint Executor) becomes unwilling to co-operate, the estate becomes contested.
As soon as any complications arise we will discuss these with you and agree the fee for the additional work being carried out in advance of any additional work being undertaken.
Qualifications
Depending on the type of transaction, complexity and experience required we will allocate the most appropriate member of our team to your case once you instruct us.
Regardless of who works on your matter, they will be supervised by Partner and Head of the Probate Department, Richard Denton, Solicitor and Partner at Orwins.
For more information on our team members, visit Our People.
Questions
If you have any questions relating to our services and our fees, all our contact information can be found here: Contact Us.