Probate (uncontested)

1. PROBATE WORK

Wedlake Bell’s Private Client Team acts for executors and administrators of estates in administering an estate in accordance with a Will or the intestacy rules. The estates we deal with are generally high in financial value and have complex aspects to their administration. There can be a wide range of asset classes and multijurisdictional elements. The work can also involve claims for the correct inheritance tax (“IHT”) reliefs and exemptions to be applied to estates, and liaising and negotiating with HM Revenue & Customs (“HMRC”).

In accordance with the Solicitors Regulation Authority (“SRA”) Transparency Rules dated 30 May 2018, we are required to provide certain information on costs for our probate services. We have done so below in the context of two examples with which we commonly deal:

1. a UK estate with a value of up to £1 million that passes to a spouse or civil partner (“spouse” hereafter includes civil partner) that is exempt from IHT (“an IHT Exempt Estate”); and
2. a UK estate with a value in excess of £1 million that passes to a number of beneficiaries where IHT is involved (“an IHT Chargeable Estate”).

Our fees will generally be charged on a time-spent basis at the hourly rates of the fee-earner(s), partner(s) and/ or consultant(s) involved (as detailed at 6 below). Our estimate of what that time will generally amount to under the two above examples is set out below, but this is by way of guidance only and the overall fees will depend on the particular circumstances. Any tax due in respect of the estate or the deceased’s lifetime affairs, including IHT, capital gains tax and income tax as applicable, is not included in these fee estimates.

You can find more information on the probate process as a whole in our client guide “Bereavement”. The length of time it will take to complete the administration of an estate varies greatly depending on: the complexity of the estate; whether IHT is payable; whether HMRC have any queries; and the amount of time it takes for the Probate Registry to issue the grant of probate. At present, the Probate Registry has long backlogs and it can take at least sixteen weeks for a grant to be issued. In our experience, the administration of most estates is completed within twelve to eighteen months from the date of death, but we will be able to provide a more accurate estimate once we have full details of the instruction, and as the matter progresses.

2. IHT EXEMPT ESTATE

We estimate that a typical probate instruction for an IHT Exempt Estate (as detailed further below) will take between 35 hours and 55 hours work at an average of £450 per hour excluding VAT (£540 per hour including VAT charged at 20%). The total costs will range between £15,000 and £25,000 excluding VAT, disbursements and expenses where applicable (between £18,000 and £30,000, including VAT charged at 20%). Disbursements are explained at 4 below.

The above estimate for an IHT Exempt Estate is on the basis of the following assumptions.

• There is a valid Will.
• The deceased was UK domiciled.
• The deceased’s assets are situated in England and/ or Wales only.
• The estate is solvent.
• There is no IHT payable and the executors do not need to submit an IHT account to HMRC.
• There are no lifetime gifts by the deceased that need to be investigated and reported to HMRC.
• All beneficiaries reside in the UK and can be identified, traced, and capable of signing documentation as required.
• The deceased owned a maximum of one property which was used as a residence.
• There are no more than five bank or building society accounts.
• There is no more than one portfolio of shares managed by a single investment manager.
• There are no other intangible assets.
• There are up to four cash legacies given outright to legatees without any trusts.
• There are up to three beneficiaries entitled outright to the residuary estate (who are not a mixture of IHT-exempt and IHT-chargeable beneficiaries) and there are no trusts.
• We can speedily identify all assets and liabilities of the estate and there are no issues with obtaining valuations.

3. IHT CHARGEABLE ESTATE

We estimate that a typical instruction for an IHT Chargeable Estate as detailed below will cost between 1% and 4% of the gross value of the worldwide estate (as detailed in the IHT return) plus VAT charged at 20% (between 1.2% and 4.8% including VAT) plus disbursements and expenses where applicable, however, the total costs will depend on the particular circumstances of the matter and we will be able to give a more accurate estimate once we have all the relevant information on the matter.

The above estimate for an IHT Chargeable Estate is on the basis of the following assumptions.

• There is a valid Will.
• The deceased was UK domiciled.
• There are up to two assets situated outside of England and Wales for which the valuation figures (including converted into GBP) are available.
• The estate is solvent.
• A full IHT account is required to be submitted to HMRC.
• All beneficiaries can be identified, traced, and capable of signing documentation as required.
• We can speedily identify all assets and liabilities of the estate and there are no issues with obtaining valuations.
• The deceased owned a maximum of two properties one of which was used as a residence.
• There are no more than eight bank or building society accounts.
• There are no more than two portfolios of shares managed by not more than two investment managers.
• There are no other intangible assets.
• There are no more than ten cash legacies.

4. DISBURSEMENTS

Disbursements are payable in addition to our fee estimates above. Disbursements are costs related to your matter that are payable to third parties. We pay disbursements on your behalf and include the costs as part of your invoice. Disbursements which will generally be incurred on either of the above examples include the following (VAT (where applicable) is charged at 20%).

• Probate Registry Fee (£300) plus £1.50 for each additional Office Copy Grant (inclusive of any VAT);
• £3-£7 per Land Registry search (inclusive of any VAT);
• £2 excluding VAT (£2.40 including VAT) per Bankruptcy search per beneficiary; and
• £1 excluding VAT (£1.20 including VAT) per Land Charges search per beneficiary.

Additional costs and disbursements that may potentially be incurred include the following. We will give estimates for these fees once more information is known and the fees will be agreed with you before being incurred.

• A post in The London Gazette, and potentially also a local newspaper, to protect against unexpected claims from unknown creditors.
• Professional valuation fees for assets such as chartered surveyors’ fees for property valuations, stockbrokers’ fees for share valuations and auctioneers’ fees for personal chattels valuations.
• Fees for any accountant or consultant we instruct on your behalf to advise on the estate’s and the deceased’s income and capital gains tax liabilities, and/ or to prepare the estate’s accounts.

5. WHAT IS NOT INCLUDED

The above costs estimates do not include work relating to any of the following aspects. Where any of these points are relevant, the time required to deal with them will increase the given estimates. We will be able to provide a tailored estimate once we have more information about the makeup of the estate and the likely work involved to administer it.

Not included is any work relating to the following.

• Sourcing foreign legal advice in respect of any interest in assets owned by the deceased outside England and Wales.
• In respect of an “IHT Exempt Estate”, any interests in a business or in agricultural property.
• Changes to legislation during course of estate administration.
• Deeds of variation redirecting assets inherited by any of the beneficiaries.
• Sourcing financial advice on the suitability of the disposal of assets in the estate.
• Tax planning for beneficiaries following receipt of their inheritance.
• Restitution for long term care funding incorrectly paid by the deceased.
• Any legal work relating to any trusts of which the deceased was involved during lifetime, or which arise under the Will.
• In respect of an “IHT Exempt Estate”, any rental properties within the estate.
• The sale of the deceased’s real estate including the main residence, and any business interests.
• Advice about the income tax or capital gains tax position of: the deceased during lifetime; the estate during the administration period; or any of the estate beneficiaries.
• The organisation of the funeral or any funeral or organ donation requests.
• In respect of an “IHT Exempt Estate”, any technical queries or other impediments to the Probate Registry issuing a grant of probate.
• Any claims against, or disputes affecting, the estate; including in respect of any caveat lodged at the Probate Registry.
• Any significant queries raised by HMRC on the estate’s IHT position or the opening by HMRC of any form of tax compliance investigation.

We have the expertise to advise on all of these aspects but the cost will be in addition to the fee estimates provided above.

6. WHO WILL CARRY OUT THE WORK?

Your work will primarily be carried out by any of the senior associates, associates, solicitors, trainee solicitors, Trust and Estate Managers or Tax Managers in the Private Client Team. This will be agreed with you at the outset and will be under the supervision of a partner or consultant who may also undertake work on the matter.

Please click below for a link to our hourly rates.

Hourly charge-out rates

To find out more about the SRA Guidance on Price Transparency, click here.

Last reviewed: May 2024