North Star Law fees for assistance with probate or letters of administration: Fees and other costs

What will our service include?

Probate is the term used for the legal process of administering the estate of someone who has died.  The role of administering the estate will be carried out by the executor or executors where there is a valid will or by an administrator or administrators where there is no valid will.  Executors and administrators are collectively referred to as personal representatives, or “PRs”.

North Star Law advises on the full spectrum of management and administration of estates and trusts arising under wills, and can support PRs with any element of the process including:

• Checking the validity of the will.
• Advising the PRs on the terms of the will or the intestacy and their role and legal duties.
• Notifying third parties of the death and obtaining valuations of the deceased’s assets and liabilities at the date of death.
• Carrying out a general asset search (if required).
• Placing statutory advertisements for unknown creditors to protect the PRs from personal liability.
• Investigating and advising on lifetime gifts made by the deceased and available allowances and exemptions.
• Preparing the inheritance tax return, including advising on available inheritance tax reliefs and exemptions, advising on the timing and payment of inheritance tax.
• Dealing with correspondence, or negotiations, with HM Revenue & Customs (HMRC) in relation to the inheritance tax position of the estate, valuations or available inheritance tax exemptions or reliefs.
• Applying for the grant of probate or letters of administration (referred to in this guidance as the “grant”).
• On receipt of the grant, arranging for this to be registered with third parties and collecting in the deceased’s assets.
• Liaising with the PRs, and the beneficiaries, as appropriate, regarding the sale, or transfer, of assets and co-ordinating the sales/transfers (except the cost of transfer or sale of an interest in property is charged separately).
• Settling liabilities of the estate and administration expenses.
• Arranging payment of legacies arising under the will.
• Preparing estate accounts to show the financial transactions in the administration period.
• Advising the PRs on their income tax and capital gains tax compliance both for the deceased to the date of death and for themselves for the administration period. Tax returns will be dealt with by an accountant, but we can help with the process, and collating the information for these.
• Preparing tax deduction certificates for residuary beneficiaries for their tax returns (if not dealt with by the accountant as part of the PRs’ tax return process).
• Advising the PRs in relation to any trust created by the will, or intestacy.
• Making distributions to the beneficiaries.
• Dealing with applications for a grant where the deceased died domiciled outside England and Wales both where a foreign grant can be re-sealed in the UK court, or where an independent grant application is required. In these circumstances we can also deal with any the inheritance tax account required.

• We have specific experience of international estates and those with business and agricultural assets as well as estates with more complex inheritance tax matters.  We often act as executor and trustee for clients.

• We also advise clients on post-death planning to mitigate inheritance tax or redirect assets using deeds of variation, or appointments under discretionary wills. Given the breadth of our expertise, we are able to tailor our services to our clients’ specific needs, whatever the size or complexity of the estate.

What services will not be included in fee relating to the probate and estate work?

Unless we confirm otherwise, our fixed fee will not include:

• legal fees for disposing of any real estate (although we would be happy to refer you to North Star Law’s property solicitors for this assistance); or
• completing any tax return for the periods during the deceased’s lifetime.

Fees and hourly rates

Wherever possible we offer fixed fees for probate work. Once we know more about the assets and liabilities in the estate and therefore what is involved, we will discuss the steps to be taken with you and give you a meaningful estimate of the fees involved at each stage.

The factors we consider to price is include:

• The number of hours we expect to have to work
• complexity of the case
• volume of different assets
• variety of assets
• types of debt
• potential disputes amongst heirs
• whether there is a Will or not
• number of jurisdictions in which assets are located
• whether there are any shareholders and what form they are in

If a fixed fee is not possible, we charge on a time spent basis according to the following hourly rates:

• Private client solicitors  £350 – £450 per hour plus VAT
• trainees  £200 per hour plus VAT
• paralegals £100 – £150 per hour plus VAT

To give an indication of possible fees, however, we have set out expected fee ranges below for three estates: a simple estate, a medium complex estate and a highly complex estate.  We have also indicated disbursements and additional costs which may be payable for some estates (depending on circumstances).

Simple estate: Grant of probate and administration of the estate only

The fee range below applies where:

• The deceased was domiciled in England and Wales.
• There is a valid will and its terms are clear.
• The assets are straightforward, located in the UK and are readily identifiable
• The deceased held no more than four bank accounts.
• The deceased held no more than one portfolio of quoted shares via an investment manager (certificated shareholdings will take longer to administer and will add to costs).
• There are no business or agricultural assets.
• There is only one property held in the estate (NB. fee range does not include fees for sale, or transfer, of the property which are charged separately).
• The deceased did benefit from any trust at the date of death.
• Any lifetime gifts made by the deceased are low value and of cash.
• All the beneficiaries can be easily identified.
• There are no more than four legacies which are given outright.
• There are no more than four residuary beneficiaries all of whom receive their share of the estate outright (no ongoing trusts apply).
• There is no dispute in relation to the distribution of the estate or claims against the estate.
• There is no inheritance tax payable, and no inheritance tax account is required to be submitted to HMRC.

The charges for an estate of this type are estimated to be between £6,000 and £8,500 plus VAT (at 20% where applicable) and disbursements, but the actual charges will depend on the specific facts of the case.

Medium complex estate: Grant of probate, inheritance tax account (but no inheritance tax payable) and administration of the estate

The fee range below applies where:

• The deceased was domiciled in England and Wales.
• There is a valid will and its terms are clear.
• All the assets are located in the UK or there are no more than two assets located overseas for which valuations have been obtained (or can easily be obtained)
• The assets are straightforward and are readily identifiable.
• Information about lifetime gifts made by the deceased is readily available and any exemption claims are straightforward.
• The deceased did not benefit from any trust interests at the date of death.
• The deceased held no more than six bank accounts.
• The deceased held no more than two portfolios of shares held via investment managers (certificated shareholdings will take longer to administer and will add to costs).
• There are no more than two properties held in the estate (NB. fee range does not include fees for sale, or transfer, of the properties which are charged separately).
• All the beneficiaries can be easily identified.
• There are no more than eight legacies which are given outright.
• There are no more than four residuary beneficiaries all of whom receive their share of the estate outright (no ongoing trusts apply).
• There is no dispute in relation to the distribution of the estate or claims against the estate.
• There is no inheritance tax payable, but a full inheritance tax account is required to be submitted to HMRC (fee range assumes there is no ongoing correspondence with HMRC about the information, or valuations, submitted in the inheritance tax account).

The charges for an estate of this type are estimated to be between £10,500 and £16,500 plus VAT (at 20% where applicable) and disbursements but the actual charges will depend on the specific facts of the case.

Highly complex estate: Inheritance tax payable, inheritance tax account, grant of probate and administration of the estate

The fee range below applies where:

• The deceased was domiciled in England and Wales.
• There is a valid will and its terms are clear.
• All the assets are located in the UK or there are no more than two assets located overseas for which valuations have been obtained (or can easily be obtained).
• The assets are easily identifiable.
• Any lifetime gifts are not significant, or complex, and the information is readily available.
• There is no more than one trust interest from which the deceased benefitted during their lifetime.
• The deceased held no more than six bank accounts.
• The deceased held no more than two portfolios of quoted investments held via investment managers, or there are no more than five certificated shareholdings.
• There are no more than two properties held in the estate (NB. fee range does not include fees for sale, or transfer, of the properties which are charged separately).
• The deceased held an interest in no more than one private company, or partnership.
• All the beneficiaries can be easily identified.
• There are no more than eight legacies which are given outright.
• There are no more than six residuary beneficiaries.
• There is no dispute in relation to the distribution of the estate or claims against the estate.
• Inheritance tax is payable with a full inheritance tax account required.
• Any questions raised by HMRC as to values or the reliefs claimed are easy to resolve and negotiations are neither complicated nor protracted.

The charges for an estate of this type are estimated to be between £18,000 and £30,000 plus VAT (at 20% where applicable) and disbursements but the actual charges will depend on the specific facts of the case.

All the private client solicitors at North Star Law Ltd have at least 10 years’ experience.

All fees and costs shown are exclusive of Value Added Tax (VAT) which will be added where applicable to each bill.

Factors Making a Probate Matter More Complex (by way of example only):

The following factors will have a bearing on costs and the likely impact on fees will be discussed with you at the outset:

• Gifts made by the deceased:
  • which are complex or require investigation.
  • in which the deceased retained a benefit during their lifetime.
  • which are transfers by the deceased into trusts.
  • claims for gifts made as normal expenditure out of the deceased’s income.
• If the deceased held interests in more than one private company, or partnership, or the structures or interests are complex in nature.
• The deceased held other business or agricultural property.
• The deceased held commercial property.
• The deceased benefitted from more than one trust at the date of death.
• The deceased had multiple assets overseas, a foreign will and/or liaising with foreign advisers is required.
• The deceased had life insurance which was held in trust, or private pension arrangements.
• There are more than five certificated shareholdings.
• Negotiations with HMRC as to valuations or relief claims are protracted or technical.
• Residue provisions in the will or ongoing trusts are complicated.
• Where the estate is intestate.
• Where a variation or redirection of a beneficiary’s share in the estate is required.
• Where deceased died domiciled outside England and Wales.

What other costs may there be?

These fees vary from estate to estate. We can give you an accurate figure once we have sight of your specific documents. In most applications, the main additional costs will be:

Disbursements to be paid by us and charged to you:

• AML search per executor/administrator (UK) £15 Plus VAT which includes our admin fee
• AML search per executor/administrator (international) £50 Plus VAT which includes our admin fee
• Certainty Will Search (if required) £115 plus VAT
• Probate Court Fee £300 
• Further Copies of the Grant £16 per copy
• Bank transfer (per transfer) £7.50 plus VAT which may include an admin fee
• Bank transfer international (per transfer) £30 plus VAT which may include our admin fee
• Office Copies of Property Title if any £10.20  
• Bankruptcy Searches (UK) £9 per beneficiary
• Bankruptcy Searches (International) £TBC (depends on country)
• Missing Asset Search if required £TBC
• Trustee Act Notices (Advertising for unknown creditors) £TBC
• Missing Beneficiary Insurance if required £TBC
• Postage charge £50 plus VAT

We handle the payment of the disbursements on your behalf to ensure a smoother process. VAT will be added to your bill (at 20% where applicable).

Other charges which may be payable as part of the administration (paid out of the estate):

• Probate valuations of property, personal effects/chattels, shareholdings, company/partnership interests – fees (which may include VAT at 20% where applicable) to be agreed with PRs prior to third party instructions.
• Inheritance tax, income tax and capital gains tax – for the deceased or the PRs.
• Accountancy fees for tax compliance to the date of death (if required) and the PRs’ tax returns for the administration period – fees (which may include VAT at 20% where applicable) to be agreed with PRs prior to accountant’s engagement.
• Conveyancing fees for sale or transfer of an interest in property – fees (which may include VAT at 20% where applicable) to be agreed with PRs.

How long will the application take?

The timescale for obtaining the grant and dealing with the administration of the estate depends on the factors of the case (and whether there is property to be sold/transferred) and the current operating timeframes for HMRC and the Probate Registry but the following are guidelines:

Simple estate:

• 2-4 weeks to collate the information for the grant from instruction
• 8-10 weeks to obtain the grant (subject to current timescales at the Probate Registry)
• 4-8 weeks to deal with the administration of the estate

Total: 14 – 22 weeks

Medium complex estate:

• 4-8 weeks to collate the information for the inheritance tax account and grant
• 8-10 weeks to obtain the grant (based on to current timescales at HMRC and the Probate Registry)
• 10-16 weeks to deal with the administration of the estate

Total: 6-8 months

Highly complex estate:

• 6-12 weeks to collate the information for the inheritance tax account and grant
• 8-10 weeks to obtain the grant (based on to current timescales at HMRC and the Probate Registry)
• 12-26 weeks to deal with the administration of the estate (based on to any negotiations with HMRC)

Total: 12-24 months

Who will be carrying out the work: team qualifications and experience

Work on your case will be carried out by a solicitor, with the assistance of trainee solicitors or paralegals. Information on the team members can be found on the team website page. For further information please contact Benedikte Malling.

All fees and costs shown above are exclusive of Value Added Tax (VAT) which will be added where applicable to each bill (at 20% where applicable).