Probate Solicitors.

A grant of probate is a document that allows an executor (the person legally responsible for carrying out the wishes contained in a will) access to a deceased person’s affairs and estate. Normally, when people refer to probate, they are referring either to the application for a grant of probate or to estate administration as these two terms are often mistakenly used interchangeably.

‘Estate administration’ is the process of managing the deceased person’s assets, debts, inheritance tax liabilities and distribution of inheritance to the beneficiaries, but there can be a degree of crossover, particularly where inheritance tax is due.

If somebody dies without a will, any assets of the deceased’s estate which aren’t accounted for will follow the intestacy rules. The intestacy rules only allow a deceased’s estate to be inherited by someone closely related to them and only through an application for a letter of representation, rather than grant of probate.

Unmarried partners of a deceased person who did not write a will are not entitled to anything under the intestacy rules, but they may have other ways they can claim part of the estate.

As there is no named executor, the person who applies for the letter of representation is typically the person who stands to inherit the most under the intestacy rules. Most often, this is the spouse of the deceased.

On average, around 50% of deaths in the UK require probate. When understanding whether or not probate is needed, there are two questions you need to ask yourself, which are:

1. What’s the value of the estate?

In an instance where the estate’s value is below £50,000, you may not need need to apply for probate. Some banks may choose to release funds below a certain threshold, typically between £10,000 to £50,000, without requiring a grant of probate.

2. Are any assets jointly owned?

When assets in an estate are jointly owned, for example a property, the assets automatically pass to the surviving co-owner. However, you may still need to apply for probate in some circumstances. For example, if some of the assets were solely owned by the deceased, such as pensions, or if there were specific gifts.

If you are unsure whether you need to apply for probate, please call one of our specialist probate solicitors on 020 3007 5500, and we can help.

When you’re looking to apply for probate, there are several steps you need to take before completing the application form. These steps include:

1. Check to see whether you need probate. For example, probate may not be needed if any assets are jointly owned or if the estate’s value is below £50,000.

2. Check to see whether you can apply for probate. If there’s a will, you can only apply for probate if you’re named as an executor. In a circumstance where there’s no will, you can only apply for probate if you’re over the age of 18, and you’re the most ‘entitled’ inheritor of the deceased’s estate under the intestacy rules.

3. Get an estimate and report the estate’s value. You will need to get all the assets in the estate valued.

4. Find out whether there’s any inheritance tax to be paid. You will need to pay inheritance tax in some circumstances, for example, if the estate’s value exceeds £325,000.

5. Retrieve a copy of the original will if you’re an executor (you don’t need to do this if you’re an administrator). In addition, you must also have a copy of the original death certificate or an interim death certificate from the coroner.

When you have taken these steps, you will need to complete the correct probate application form. If there’s a valid will you will need to complete a form PA1P. However, if there’s no valid will you will need to complete a form PA1A.

The cost of probate most often depends on two factors: how complex the estate is, and how much time is needed to get the estate in order. However, if there are doubts over the will’s validity or overseas assets, this can increase costs further.

Our probate team charges between £195 – £350 plus VAT per hour, with an average probate matter taking between 6 and 12 months to conclude.

A simple, uncontested probate will cost in the region of £3,950 plus VAT for 13 hours of work. This price is based on an estate valued at below £325,000, which consists of standard assets (house, cash and personal possessions) that are all based in the UK with a small number of beneficiaries.

Disbursements and third party costs such as the probate application fee (£300) are not included in the above price.

A straightforward probate matter will take a minimum of six months to approve the grant of probate. However, for more complicated probate cases, which involve complex assets, the time it takes to get a grant of probate can take at least 1-2 years.

Please note that where an estate includes property (particularly properties valued at over £1,000,000 or above) time estimates can vary significantly depending on the condition of the housing market, and the desired market price the executor wishes to achieve.

In some cases, probate may not be needed. However, in circumstances where the estate is more complicated, it’s best to seek legal help from a specialist probate solicitor. Examples of when you should use a probate solicitor include:

• If you anticipate inheritance tax will be due.
• The terms of the will are unclear.
• Part of the estate is going to pass to a beneficiary below the age of 18.
• The deceased owned land or property abroad.
• If anyone is likely to contest the will.

If you decide to instruct a solicitor, legal fees can be paid from the estate.

To contact one of our probate solicitors, please call us on 020 3007 5500.

Probate generally includes 2 stages: applying for the grant of probate and estate administration. Broadly, our fees for uncontested probate fall into the following 3 categories:

Our hourly fees vary by the seniority of whomever is working on your case. A typical probate matter team will be made up of 3 people: the supervising solicitor, a trainee solicitor or paralegal, and an administrator. Depending on who is working on your case, our hourly rates are as follows:

Managing Director                                                     £550 plus VAT per hour
Directors                                                                      £350 plus VAT per hour
Solicitors                                                                     £305 plus VAT per hour
Trainee Solicitors / Senior Paralegals                    £210 plus VAT per hour
Paralegals                                                                   £195 plus VAT
Administration                                                           £175 plus VAT per hour

Charges are made in increments of 1/10 of an hour, or for every 6 minutes spent on your matter, rounded up.

Going through probate or estate administration can be complicated, but our probate solicitors try to simplify the process. Our probate services include:

Documentation and preparation 

• Initial consultation to talk you through probate and what is required
• Registering the death if required
• Preparing figures and documentation for the grant of probate application and completing the PA1P form
• Locating and verifying the deceased’s will if there is one
• If there is no will, identifying and notifying beneficiaries
• Submitting the application for the grant of probate and obtaining the grant
• Placing ads in relevant publications for creditors to come forward and settle any outstanding debts against the estate

Inheritance tax

• Identifying and calculating any inheritance tax due
• Claiming any unused nil rate band or other relevant tax reliefs and exemptions
• Obtaining valuations of the deceased’s estate
• Completing the required inheritance tax forms for HMRC and corresponding with them on your behalf, including correcting any issues
• Ensuring any inheritance tax due is paid

Administrating the estate

• Liaising with the beneficiaries of the estate and updating them on progress
• Corresponding with any financial institutions or organisations that may hold financial information about the estate and gaining the relevant information where required
• Arranging for the payment of any debts that are outstanding against the estate
• Arranging the transfer of any jointly held assets to a single owner
• Liaising with an estate agent and conveyancer on behalf of the estate to organise the sale of any properties
• Updating insurers on the status of any properties in the estate
• Preparation of estate accounts
• Distributing the estate to all beneficiaries who can be found, and holding the estate on trust for any who cannot be contacted

Where we are required to appoint a third party on behalf of the estate, for example an estate agent, any fees charged by the third party are not included within our fee quotes.

The cost of probate and estate administration don’t depend on the size of the estate. Instead, fees are determined by how complicated the estate is to administrate, and what’s in it. Normally, the larger the estate is, the more complicated it is, but that isn’t always the case.

As a guideline, an average estate worth £325,000 with a house, cash savings, NS&I savings and 2 beneficiaries would normally cost £6,000 plus VAT plus disbursements to administrate.

Below is a list of the most common factors which may affect the fees incurred by your probate matter:

Factors affecting the cost of probate

• Type of assets within the estate and where they are based
• If the deceased passed away in the UK or abroad, and when this was
• Where the deceased is domiciled
• If a will exists, whether or not it can be located and if so, whether it is valid
• Whether the executors named in the will are willing and able to act
• If inheritance tax is payable by the estate and if any reliefs or exemptions can be applied
• Whether the deceased left any gifts to charities
• If there any outstanding debts owed by the deceased or, conversely, any debts owed to the estate
• The level of correspondence required with third party organisations to gather the relevant information
• Whether the deceased kept good financial records
• The number of beneficiaries and whether or not they can be found
• Considering the impact of any trusts the deceased benefitted from, and any trusts created upon death

This list is not exhaustive.

If the will is challenged, or any form of inheritance dispute arises, probate fees may vary significantly from those listed above.

Disbursements are fees paid to third parties such as the government and courts. There are a number of disbursements and third party costs, both mandatory and optional that must be paid during probate:

Please note that disbursement fees and third party charges may change from time to time.

How long the whole probate process takes is dependent on whether or not you are simply applying for a grant of probate, and how complicated the estate is.

An application for a grant of probate on its own can be complete in as little as 2 to 4 weeks for the most basic of estates, however estate administration will take a minimum of 6 months.

These time frames will vary primarily on any backlogs the probate registry are facing, and how readily available the required information for the probate application and inheritance tax forms is.

The most common factors which delay estate administration include:

• overseas properties or beneficiaries
• having a large number of bank accounts, investment accounts and pensions
• high value property (depending on market conditions)
• whether the will contained a trust, or if the deceased was the beneficiary of a trust

These factors may affect the length of probate, but are not guaranteed to.