Private Client Fees


We deal with a range of estates where someone has died, from the straightforward to the very complex including those with an international dimension.


Our fees generally and normally

At the heart of the services we offer is our time and expertise; our charges are usually calculated by reference to hourly rates which take account of several factors, including urgency, risk, complexity, the value and the experience handling matters for you.

We calculate our fees on the time it takes to perform the work during normal office hours.

Should we have to respond quickly, put your work first, work outside the usual hours of business, or it may be unusually important, valuable or complex, or we go through an unusually large number of documents, these factors and more may increase those fees.

We aim to provide you at the outset with an indication of the likely costs and expenses involved in acting for you and any amount which we indicate is an estimate is meant as a guide; it is not a fixed fee unless it is agreed as such in writing in advance. We would require payments on account of our fees before doing any work on your behalf. We would try to ensure that you are kept properly informed about the level of fees incurred and if any unforeseen or additional work becomes necessary. For a variety of reasons, certain matters do not go ahead in which event we would charge for the work carried out and expenses incurred to the point of conclusion, unless otherwise agreed in writing. We are required to charge VAT at the current rate on our charges and on certain payments we make on your behalf. All figures advised are quoted net of VAT.

The estimate of time and costs should be provided at the outset of a matter with the aim of indicting what work is planned and trying to highlight certain assumptions. We would hope to update you from time. We also aim that the said estimate should set out who is dealing with it and this could include others in our team and at what hourly rates they operate.

We also set out matters in a Client Care letter and or Standard Terms and Conditions of Business at the outset.


Our hourly rates for dealing with estate administrations (often referred to as probate work)

Our hourly rates for probate work range between depending on several factors:

£250 to £350 (plus VAT) for a Director or Consultant
£200 to £300 (plus VAT) for a Solicitor
£150 to £200 (plus VAT) for a Trainee Solicitor
£95 to £160 (plus VAT) for a Probate and Trust Assistant and any other paralegal
£95 (plus VAT) for Administrative Support


The Usual Process, in general

THE GOAL
It is the personal representative(s) who are responsible for getting the right assets into the right hands after settling relevant liabilities, acting in accordance with the terms of the testamentary documents, for instance if there is one, a Will, or – if there is no Will – in accordance with the rules of intestacy.

TWO PARTICULARLY IMPORTANT DOCUMENTS
The personal representative(s) will be responsible for completing two important documents. One is a form from HMRC that is either a shorter version currently called an IHT205 or else a longer, more demanding, version called an IHT400 together with Supplementary Forms. It proves and values according to valuation formula a list of the assets and liabilities in the estate as at the date of death and may have to include many assets which you may not have considered to be relevant, for example any “Transfers of Value” made by the deceased since a date in 1986. There are complex rules to decide which version you can use and, whichever is used, questions are raised in such Forms which have implications that must be carefully considered. Experience, skill and knowledge can assist the process to run more smoothly than it might otherwise have, although some issues are difficult to resolve quickly.

The other important document is called the Statement of Truth (“SOT”). This takes certain information from the HMRC Form referred to above and is a document that the personal representative(s) have to sign. It provides certain statements to the Court about what the personal representative(s) have so far done and what they plan to do in the future concerning the administration of the estate.

As we proceed with such matters an assessment of the inheritance tax position can be made and decisions taken as to what exemptions such as spouse exemption, business property relief, agricultural property relief, normal expenditure out of income, charitable exemptions and more could be utilised, how any inheritance tax payments can be funded and more.

ASKING YOU QUESTIONS
The person dealing with your file on a day to day basis will ask you a series of questions designed to assist in preparing the relevant Form(s) for your signature, and there may well be follow-up questions throughout the course of the matter. Valuations of assets can be less than straightforward. There are also circumstances that could make matters more challenging. These include if there are any issues with any of the testamentary documents, the person was not/may be not domiciled (according to the extended and technical definition of that word) in the UK, and or there are foreign assets etc.

SENDING OFF THE DOCUMENTS AND OBTAINING THE GRANT
After the relevant documents above have been prepared, they are submitted to HMRC and the Court. After a time, the Court should if all is in order reply with what is called a Grant in the estate to the personal representative(s). This is the legal document which should enable the personal representative(s) to deal with the assets and liabilities as the law requires. This normally means making decisions, often in conjunction with beneficiaries, as to the payment of any outstanding debts and how best to deal with the assets in the estate. There are several considerations here, some of which can be complex, such as tax implications and timings of any disposals. The person dealing with you file should be able to advise you/give direction in this respect.

FINAL MATTERS
After relevant tax matters, both prior to the date of death and between the date of death and the date of closure of the estate, have been decided upon/settled and all assets and liabilities the personal representatives are aware of have been dealt with, and subject to any claims against the estate, the balance of the estate can be distributed and accounts prepared. There are several timescales which are normally respected before this occurs.


What is the process likely to be like?

It is very difficult to estimate how much time will be spent to administer an estate, it will depend on its own facts and unexpected problems may materialize in any case. Nevertheless, to try to be helpful to you here are some more straightforward examples below to show the estimated/anticipated fees and disbursements which might be involved in certain UK-based estates. Please note that these should not replace any detailed pricing statements. However, they represent our estimated fees and disbursements in relation to three straightforward examples of UK-based estates. We are assuming in all three cases that the deceased is domiciled in England and Wales and it is not difficult or time consuming coming to this conclusion.

A straightforward UK-based small estate
Assuming particularly that there is a valid Will with no codicils, a residential property in sole ownership or jointly owned with spouse, a few bank accounts (maybe two or three), no shares or collective investments or trusts, no disputes or claims real or prospective/possible against the estate, no inheritance tax to pay and the shorter form IHT205 can be submitted to HMRC, those to inherit are family members, there is no income tax or capital gains tax, and no formal financial accounts are required.

We would hope to obtain the Grant in such an estate within 2 to 4 months of instructions. The work after the Grant is obtained can take between 5 to 10 weeks, that is the gathering in of the assets. We would then aim to be able to distribute the assets within a further 4 weeks. However, a decision would still need to be made as to whether certain actions and certain timescales should be taken/allowed and this would influence how long one waits/what one should do before one distributes.

Estimated fees and disbursements:

We would estimate our fees for administering such an estate should cost between £6,500 and £8,650 plus VAT between £1,300 and £1,730. This excludes the cost of any associated conveyancing matters.

Probate application fee: £160.
(But the Government is proposing changes which should mean that this fee will become based on the value of the estate)
Advertisement Fees: £300 - £500 plus VAT of £60 - £100.
Such adverts are regularly placed in certain publications during an administration to provide certain safeguards including against certain unknown creditors coming forward in the future.

There are matters which may increase the costs:
Disputes between beneficiaries.
Requirements for opinions on matters of law and or queries accounting for actions in the estate, other than a few.
The need to address complex inheritance tax issues, such as gifts with reservation or pre-owned assets legislation to try to be sure there is no inheritance tax to pay or valuation matters which affect these issues.
Not providing the information to us in a format which is easy to access and or piecemeal over a period.
More than a few assets/liabilities in the estate, and especially when you count in assets or even liabilities for instance to identify whether any such still exist and it proves that they do not.
Issues with State benefits.
HMRC queries/enquiries.
CGT tax planning related to the disposal of the residential property if we agree to be involved in any such in writing.
Any deed(s) of variation, if we agree to be involved with any such which is normally a separate matter.

A straightforward UK-based medium estate
Assuming particularly that there is a valid Will maybe with Codicils, a residential property in sole ownership or jointly owned with spouse, no trusts, there are investments, insurance policies and/or bonds. Also, there are no disputes or claims against the estate, there is inheritance tax requiring a full Form IHT400 to be sent to HMRC, no income tax return to be filed for the administration period but the simplified procedure is available, and simple spreadsheets of the ledgers only is required instead of formal full estate accounts.

We would hope to administer an estate such as this within 12 to 18 months. In the normal course, we would expect to obtain the grant within 4 to 6 months in part due to the time taken in valuing assets and liabilities and compiling the information for the Forms you need to complete; after the Grant is in there is the collection and distribution of assets which can take another 2 to 3 months depending on what beneficiaries want and any tax considerations and it can take months to agree the inheritance tax position with HMRC. Further influence on these timescales is any decision made as to whether certain actions and timescales should be recognized to ty to protect the personal representative(s) before distributing.

Estimated fees and disbursements:

We would estimate that our fees for dealing with such an administration should cost between £10,700 and £17,300 plus VAT between £2,140 and £3,460. This excludes the cost of any associated conveyancing matters.

Probate application fee: £160.
(The Government is planning changes which will mean that this fee is based on the value of the estate)
Advertisement Fees: £300 – £500 plus VAT of £60 - £100.
Such adverts are regularly placed in certain publications during an administration to provide certain safeguards including against certain unknown creditors coming forward in the future.
Valuation Fee for a residential from an RICS: £750 - £1,250 plus VAT of £150 - £250.
Fee for valuing shares if third party instructed: £200 - £500 plus VAT of £40 - £100.

Taxes which may be relevant:

An estate such as this one we would normally expect to have to attend to a number of taxes, particularly inheritance tax, income tax and capital gains tax but this depends on so many factors and may be more or less time consuming as a result, we would hope to keep you updated on this matter from time to time.

There are matters which may increase the costs:
Many beneficiaries and if charities are included at time complex tax calculations.
Delays by HMRC, things seem to be getting worse not better.
The use of life insurance policies or something similar as part of tax planning.
Large numbers of documents and the need to address more complicated inheritance tax issues, such as gifts with reservation or pre-owned assets legislation and complicated valuation issues.
Income sources from abroad.
Disputes between beneficiaries.
Requirements for opinions on matters of law and or queries accounting for actions in the estate, other than a few.
Not providing information to us in a format which is easy to access and or piecemeal over a period.
CGT tax planning related to the disposal of the residential property if we agree to be involved in any such in writing.
Any deed(s) of variation, if we agree to be involved with any such which is normally a separate matter.

A Complicated UK-based estate

Assuming particularly that there is a valid Will with or without codicils, four or five residential properties or land, bank accounts, a small business, an investment portfolio though a stockbroker’s nominee account, insurance policies and bonds, a life interest trust ending on death, no disputes or claims against the estate, inheritance tax is payable and the longer Form IHT400 is required to be sent to, and accountants input is required on the subject of estate accounts and or tax in the administration period.

We would hope to administer an estate such as this within approximately 1 to 2 years. In the normal course, we would expect to obtain the Grant of Probate within 4 to 6 months, in part due to the time taken in valuing assets and liabilities and compiling the information for the Forms you need to complete; after the Grant is in there is the collection and distribution of assets which can take another 4 to 6 months depending on what beneficiaries want and any tax considerations and it can take months to agree the inheritance tax position with HMRC. Further influence on these timescales is any decision made as to whether certain actions and timescales should be recognized to try to protect the personal representative(s) before distributing.

Estimated fees and disbursements:

We would estimate that our fees for dealing with such an administration should cost between £28,000 and £49,000 plus VAT between £5,600 and £9,800. This excludes the cost of any associated conveyancing matters.

Usual disbursements which will be charged in addition are:

Probate application fee: £160.
(The Government is planning changes which will mean that this fee is based on the value of the estate)
Advertisement Fees: £300 – £500 plus VAT of £60 - £100.
Such adverts are regularly placed in certain publications during an administration to provide certain safeguards including against certain unknown creditors coming forward in the future.
Valuation Fees between £3,000 to £5,000 plus VAT of £600 to £1,000 depending on how many properties and types and any unusual features.
Fee for valuing shares if third party instructed: £200 - £500 plus VAT of £40 - £100. depending on what is in the investment portfolio.

Taxes which may be relevant:

An estate such as this one we would normally expect to have to attend to a number of taxes, particularly inheritance tax, income tax and capital gains tax but this depends on so many factors and may be more or less time consuming as a result, we would hope to keep you updated on this matter from time to time.

There are matters which may increase the costs:
Number of legatees and any compliance issues even from beneficiaries and if charities are included at time complex tax calculations.
Valuations due to nature and or ownership structure(s) or other circumstances.
Delays by HMRC, things seem to be getting worse not better.
Protracted matters such as business issues, or disputes.
Time consuming and complex analysis of assets and what to do with them relative to the usually residuary beneficiary and involving tax matters.
Income sources from abroad.
Requirements for long and conjugated opinions are matters of law and or queries accounting for actions in the estate.
Disputes between beneficiaries. Not providing information to us in a format which is easy to access and or piecemeal over a period.
Any deed(s) of variation, if we agree to be involved with any such which is normally a separate matter.

To particularly note in this complicated UK-based estate

This type of estate is very difficult to estimate in advance for, so much depends on the number of assets and their complexity, the type of business and the nature of the ownership, the values of the assets and liabilities and their complexity. Sometimes the assets are managed in such a way that their valuation is straightforward. These factors and more can have a major impact on the costs.

Estates including foreign assets

We are also involved in the administration of estates which include material international dimensions, including assets outside the UK. We would need to discuss with you the exact circumstances and provide a separate indication of likely estimated times and charges and more for such cases. These types of estates can but not necessarily involve hundreds of hours of work, a wide range of risks, cross jurisdictional issues and usually the involvement of a team of in-house people, including even other UK-based lawyers and or lawyers/other legal persons abroad.

Estates involving special issues

Due to the in-house expertise we have been able to develop over the years, we receive instructions from time to time to deal with estate administrations in which special problems have arisen and at various stages of an administration. For example, valuations which have become an issue due for instance to a discovery of the true nature of the asset in question and a wrong valuation basis, there are questions of the capacity of the deceased, the position on the deceased’s domicile needs to be addressed in detail, the residency of the deceased for the purposes of UK income and capital gains tax prior to the date of death also needs careful attention and more. There are many ways of dealing with these special instructions, usually involving a team of persons whom we have here and or at times third parties. We would need to discuss with you the exact circumstances and provide a separate indication of likely estimated times and charges and more. These types estates can but not necessarily involve hundreds of hours work, a wide range of risks, even cross jurisdictional issues and usually the involvement of a team of in-house people, including even other UK-based lawyers and or lawyers/other legal persons abroad.

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