Probate costs

Probate costs

Our costs for dealing with probate

This page gives you information about our fees for dealing with an uncontested probate, including applying for the grant and collecting and distributing the assets in the estate, and the expenses you will incur in connection with our work.

Not all estates are the same, and the cost will depend on the individual circumstances of the estate. If you call one of our experienced probate team on 01223 578070 (Cambridge) or 01223 518317 (Histon) and provide us details of the estate, the general provisions of the Will (or confirm if no Will was left), we can give you a personalised quotation which will you give more details of our fees and all the expenses likely to be payable in your particular case.

Our probate team

Probate and estate administration are dealt with by Laura Hodsdon and Amber Southwood in our Cambridge office, and by David Parker in our Histon office. David Parker is the head of our probate team.

You can find details of their qualifications and experience by following the link to Our People here

What work is included in a probate matter?

 We can assist you with solely obtaining Grant of Probate, which includes:

• Reviewing and advising on the provisions of the Will
• Identifying the personal representatives – executors (if a Will was left) or administrators (if no Will was left) who are entitled to administer the estate
• Preparing an inheritance tax return for the personal representatives, if one is required
• Submitting the inheritance tax return to HMRC (if the estate is a taxable estate or not an excepted estate)
• Discussing the arrangements for payment of inheritance tax due (on a taxable estate) – usually this is paid from available estate funds
• Preparing an application for a grant of probate (where there is a Will) or letters of administration (where there is no Will) – the court document which enables the personal representatives to collect in the estate assets
• Lodging the papers with the probate registry to obtain the grant of probate or letters of administration

 Or, administering the entire estate, which includes:

• Reviewing and advising on the provisions of the Will
• Identifying the personal representatives – executors (if a Will was left) or administrators (if no Will was left) who are entitled to administer the estate
• Identifying the beneficiaries of the estate
• Assisting with obtaining full details of the assets and liabilities of the estate
• Preparing an inheritance tax return for the personal representatives, if one is required
• Submitting the inheritance tax return to HMRC (if the estate is a taxable estate or not an excepted estate)
• Discussing the arrangements for payment of inheritance tax due (on a taxable estate) – usually this is paid from available estate funds
• Preparing an application for a grant of probate (where there is a Will) or letters of administration (where there is no Will) – the court document which enables the personal representatives to collect in the estate assets
• Lodging the papers with the probate registry to obtain the grant of probate or letters of administration
• Collecting in the assets in the estate that are to be liquidated
• Assisting with resolving any enquiries raised by the HMRC in respect of the inheritance tax return
• Paying the funeral expenses and other liabilities of the estate
• Appropriating assets that are not to be liquidated to the relevant beneficiaries
• Distributing the net estate to the beneficiaries in accordance with the Will or the intestacy provisions,

• Finalise Income Tax and Capital Gains Tax affairs, and

• Preparing final estate accounts for the personal representatives detailing all of the assets collected and the debts paid and how they have been distributed.

What fees and expenses will I incur for you dealing with probate?

Our fees will depend on whether we have been instructed to solely obtain Grant of Probate, or whether we were instructed to administer the entire estate.

Our fees and some expenses are subject to VAT, currently 20%. In the information below, figures in brackets include VAT.

We will look at each of these elements in turn.

Our fees

Not all estates are the same, and the cost will depend on the individual circumstances of the estate. Our fees will reflect the value and nature of the property in the estate, whether or not there is a valid Will, if IHT is payable on the estate, and the number of beneficiaries.

Where we have been instructed to solely obtain Grant of Probate our fees usually fall between £1,500 to £3,000 (£1,800 to £3,600 including VAT).

If we have been instructed to administer the entire estate, our fees are based on an hourly charge rate of up to £350 plus VAT (rate determined upon initial instruction) and are inclusive of all attendance/meetings, correspondence, and time spent by staff working on your matter. Our fees typically range from:

• £2,500 to £3,500 (£3,000 to £4,200 including VAT) – simple estate
• £3,500 to £10,000 (£4,200 to £12,000 including VAT) – average estate
• £10,000 to £150,000 (£12,000 to £180,000 including VAT) – complex, high value estate

We will always discuss costs with you before we begin work on an estate.

Where Members/Partners in our firm are appointed as executors and trustees of the estate, we will charge for their work at an hourly rate of £255 (£306) plus a percentage of the value of the estate – 1.5% of the value of assets other than the principal residence where the value element would be  0.75% of the deceased’s share of that residence, in both cases plus VAT.

Our experienced probate team will be able to give you more accurate information on our fees when we have more information from you.

Our expenses

The expenses we typically incur are as follows:

• £200 – £300 (Approx.) – Trustee Act adverts (if the personal representatives require) in the London Gazette and a local newspaper where the deceased lived or held land, to protect against claims by unknown creditors.
• £100 – £200 – Will Search
• £200 – £300 – Asset Search
• £300 – Grant of Representation (Probate/Letters of Administration) Court fee
• £16 – Per additional copy of the grant of probate or letters of administration
• £10 () – Per Identity verification/AML Search
• £8.00 (Approx.) – Per bankruptcy search for each beneficiary
• £15 to £75 () – Land Registry Fees

In addition, if the estate includes property, then ongoing utility, maintenance and insurance costs will likely be payable.

Note the above is not an exhaustive list and other expenses may apply. 

Inheritance tax (IHT)

IHT is a tax that can potentially be payable on a person’s estate when they die. IHT is currently charged at 40% on the value of an estate that exceeds the available tax-free allowance(s).

Each individual currently has a £325,000 tax-free allowance, known as the Nil Rate Band (NRB). If the value of the estate is below this amount, no IHT is payable.

An additional allowance of up to £175,000, known as the Residence Nil Rate Band (RNRB) may be available if:

• You own a qualifying residential property
• You are leaving the property to direct descendants
• Your estate is under £2 million

This additional allowance can increase the tax-free allowance to up to £500,000 before IHT is due.

Any unused allowances can also be transferred between spouses and civil partners. This means an individual could have a tax-free allowance of £1 million, depending on their circumstances.  

There are also various assets and gifts which are exempt from IHT or have reliefs, such as charitable gifts, business assets, and agricultural property.

When you provide us with the details of the property comprised in the estate and its value, along with any liabilities of the estate, and details of whether lifetime gifts were made by the deceased, we can guide you as to how much IHT will be payable on the estate.

What is not included in your fees?

Our fees include all the legal work normally involved in administering an estate.

Sometimes, when we investigate the assets in the estate, we may find that additional work is required, in which case we will tell you and inform you what additional fees are likely to be incurred.

Our fees for such unexpected work will be charged according to the time we spend, at an hourly rate ranging (depending on the experience of the fee earner handling your transaction) from £200 to £360 (£240 to £432 including VAT).

The information set out above on our fees does not include:

• dealing with the sale of any house or flat in the estate; or
• dealing with the finalisation of income tax affairs; or
• advising you on or preparing a Deed of Variation; or
• advising you on or preparing trust documentation if any estate assets are to be held on trust: or
• dealing with any litigation that could arise in relation to an estate.

How long will this process take?

• The time required to gather information, prepare the IHT return, and prepare the application for the grant of representation depends on the complexity of the estate and the quality of the information provided by the personal representatives and assets. For a simple estate, this typically takes 8 – 12 weeks. For more complex estates, it may take between 12 – 24 weeks, particularly where multiple or specialist valuations are required (for example agricultural or business assets and whether relief can be claimed)).

• Where the estate is taxable (or not an excepted estate), HMRC must process the submitted IHT return, and provide us with a unique code which is required to submit the application for grant, which usually takes 8 – 16 weeks. For more complex estates, HMRC may raise enquiries or undertake a compliance check, which can extend the process by a further 12 weeks or more, depending on the nature of the enquiries, the responses provided, and how far HMRC pursue those enquiries.

• Once HMRC have provided the unique code which is required in order to apply for the grant of representation, it usually takes the Probate Registry 4 – 16 weeks to issue the sealed grant of representation.
• Collecting the estate assets and settling liabilities generally takes a further 4 – 16 weeks months after the grant of representation has been issued, although this may take longer depending on the type of assets involved (for example, investments in term deposit accounts where they are ‘locked in’ for the initial term or decisions regarding appropriation of assets to beneficiaries rather than liquidation).

• Preparing the estate accounts and distributing the net assets typically takes around 4 – 6 weeks once all assets have been collected and liabilities settled.

 Overall, the administration process usually takes between 6 and 18 months. Where appropriate, interim distributions to the beneficiaries can be made before the finalisation of the estate (during the administration process), if the personal representatives agree and authorise this.

Why use a professional?

Every estate is different, and we understand that this is often a sensitive time. We explain your options clearly, keep you informed throughout the process, and tailor our service to your circumstances – whether the estate is simple or more complex.

By instructing a professional, it ensures:

• Correct application for grant of representation is being applied for
• Forms and supporting evidence are properly prepared
• The process is handled efficiently

Please contact a member of the Private Client team today, who will be happy to  discuss the administration of an estate.