COSTS INFORMATION REGARDING THE COLLECTION AND DISTRIBUTION OF ASSETS BELONGING TO A PERSON FOLLOWING THEIR DEATH WHERE THESE ARE WITHIN THE UK AND MATTERS ARE NOT CONTESTED
- The process of collection and distribution of assets belonging to a person following their death is often referred to as the administration of an Estate.
- Our Colin Byford and Maggie Kerrigan deal with work in connection with the administration of Estates. Both are senior solicitors, Mr Byford having qualified in 1979 and Maggie Kerrigan in 2003.
- When we deal with matters in connection with the administration of an Estate our charges for work undertaken will be based on an hourly rate of between £250.00 and £275.00 per hour excluding VAT (£300.00 to £330.00 per hour inclusive of VAT) for work undertaken by Mr Byford or Miss Kerrigan. For work carried out by paralegals, trainee solicitors or work carried out by anyone else here which is of a paralegal nature, the hourly rate charged is £118.00 excluding VAT (£141.60 including VAT).
- The complexity of the Estate determines the hourly rate charged. If, for example, there are numerous assets, an intestacy (an Estate where the deceased did not leave a Will), more than one property or beneficiaries overseas, the hourly rate could be at the higher end of the above mentioned scale.
- When a person makes a Will they appoint an Executor or Executors who will deal with the administration of the Estate following the person’s death.
- Sometimes we are appointed as Executors and in those circumstances, once we have established the number and type of assets in the Estate we will look to contact the beneficiaries of the Estate giving details of our estimate of costs based on the information available to us at that time.
- Where we are not Executors and we are asked to assist the appointed Executors with the administration of the Estate, we will arrange a meeting at an early stage with the Executors and ask for details of the assets in the Estate and will then give details to the Executors of our estimate of costs based on the information provided to us.
- Where there is no Will, we can assist those entitled to deal with the Estate.
- In a large number of Estates, a document has to be obtained from the Probate Registry, called a Grant of Probate where the deceased left a Will and a Grant of Administration where there is no Will. The Grant enables certain assets to be dealt with. Typically, once the application for the Grant has been sent to the Probate Registry it takes around 2 weeks for the Grant to be issued.
- Once the Grant has been issued there is a process of dealing with those assets for which a Grant is required and finalising the administration of the Estate, to include, preparation of Estate Accounts.
- If you are the Executor/Personal Representative of an Estate and do not require assistance with all aspects of the administration of the Estate, we can offer a bespoke service.
- Occasionally, there are developments in the administration of an Estate resulting in us having to undertake work over and above what was initially anticipated and this may lead to an increase in the overall costs initially estimated.
- Each Estate administration is different and the overall costs will depend on the work we are required to undertake. An Estate where the deceased left a Will, no Grant is required and where there are minimal assets to deal with may require around 3 to 5 hours of work but possibly more. More complex matters involving, for example, no Will, numerous assets, the obtaining of a Grant, payment of Inheritance Tax may require 25 to 40 hours of work or more.
- Where there is a property comprised in an Estate there is likely to be legal work required in connection with the same and this may be having the property placed in the name of a beneficiary or it may be a sale of the property. These fees are in addition to those above. The work relating to the property is likely to be carried out by Mr Byford at an hourly rate within the range indicated above and which will depend on what is required and whether we are dealing with a reasonably small freehold property or perhaps a substantial property of significant value. When a property is comprised in an Estate various issues may arise. There may be about 6 hours work required for dealing with the sale of a freehold property but a leasehold property sale is likely to involve more and perhaps 8 hours work but it is difficult to be sure given many factors which may be involved and it may be necessary to liaise with more than one beneficiary as well as dealing with those other issues which there may be in connection with an estate. The actual costs will depend on what has to be done. In addition there will be any disbursements and any administration fees for transfer of monies and details are shown under the Conveyancing Fees for sales of Freehold Sale and Leasehold Sale.
- Inheritance Tax and Capital Gains Tax may be payable in connection with some Estates. Some information regarding these taxes can be found at https://www.gov.uk/browse/tax/inheritance-tax
- We aim to provide the best costs information we can at an early stage so that you will be aware of what the overall costs are likely to be.
- In addition to our costs, there may be disbursements to pay. Disbursements are costs related to the matter that are payable to third parties. We handle the payment of disbursements. The disbursements could be as follows:
- Land Registry fees for copy documents – around £10.00
- Bankruptcy searches – £2 per name searched for UK based beneficiaries
- Notices published in The London Gazette and a Newspaper local to where the deceased lived – these protect against unexpected claims from unknown creditors – around £500 for the Advertising Agency fees and our costs inclusive of VAT
- Fee for obtaining the Grant – At present, the fee payable to the Probate Registry to obtain a Grant of Probate/Administration through Solicitors is £273.00 plus £1.50 for each Office Copy.
- There may be disbursements in addition to the above, for example, property or share valuation fees and we would provide details of these to you.
- As regards to how long it may take to deal with the administration of an Estate, this really will depend on the number, type and value of assets and also the number and location of beneficiaries. The administration of some Estates, can be concluded in a matter of weeks, where, for example, no Grant is required and there are few assets but others could take around a year to 18 months, possibly longer depending on circumstances.
- The information above relates to uncontested Estates where all assets are within the UK and there is no dispute between beneficiaries and matters are uncontested. Where circumstances are other than this our basis of charging and the time it may take to deal with the administration may be different.
- Please feel free to contact us if you wish to discuss your particular circumstances and what the costs and disbursements may be.