SRA Price Transparency Illustration
The following information is an illustrative guide only and is not a quote or an estimate. Individual costs will depend on individual cases.
VAT: Where VAT is chargeable the rate will be in accordance with current tax rules. The current standard VAT rate is 20%. (UK Government VAT Rate site)
Typically, our fees for administering an estate range from £1,000 to £50,000 plus VAT although fees may be outside this range. The cost of administering estates is affected by the complexity of the estate and not necessarily only by the value of the assets and liabilities involved. The factors that affect the cost of administering an estate include but are not limited to:
- The availability of information relating to the deceased’s assets and liabilities
- Whether or not the deceased had a valid Will at the date of death and the terms of the Will
- The number and types of assets and liabilities in the estate
- Whether or not Inheritance Tax is payable
- The number of beneficiaries and their whereabouts
As a very general illustration of price – for an estate worth £300,000 where there is a valid will, one beneficiary only who is easily traceable, our firm are not the executors, there are no disputes about the estate, no Inheritance Tax payable and the entire estate is held in cash – our charges are likely to be in the region of between £1,000 - £5,000 plus VAT and disbursements.
Full administration of an estate comprises the following stages:
Collection of information about the estate and preparation of the application for Grant of Probate/Letters of Administration
- We will need to obtain complete information about the deceased’s assets and liabilities at the date of death and information about any gifts the deceased made during their lifetime
- We can arrange for the funeral invoice to be paid from the deceased’s monies provided there are sufficient cash assets
- Once we have obtained this information we will need to complete Inheritance Tax Returns and an application for probate
- If Inheritance Tax is payable we will need to arrange for an initial payment to be made to HMRC
As we are reliant on third parties, it is difficult to estimate how long this stage will take. However, it should be complete within 8-10 weeks of taking your instructions.
This stage may take longer if the deceased died intestate and we need to trace relatives entitled to the estate.
The Grant is normally issued by the Probate Registry within 2 weeks of the application being submitted.
Collection of Assets
- We will send a copy of the Grant of Probate/Letters of Administration to the financial institutions where the deceased had assets
- We will assist you with the sale or transfer of the property (please note our Firm’s conveyancing fees in respect of property sales are an additional expense and dealt with separately)
- If there is no property to sell we anticipate this stage will take approximately 6-8 weeks
- If there is a property to sell this stage is dependent on the time required to complete the sale and discharge all liabilities associated with the property
- During this stage we may advise you to take out statutory advertisements. These are a means of ensuring that creditors are made aware of the forthcoming distribution of the estate
- Fixed legacies will normally be paid during this stage
Preparation of estate accounts and distribution of assets
- We will prepare estate accounts that detail the assets and liabilities within the estate as well as any administration expenses and income and the entitlements of the beneficiaries
- The estate accounts will be sent to the Executors for their approval and then to the residuary beneficiaries to confirm their entitlement
- Estate Income Tax Returns may also need to be prepared and any tax paid in respect of income received or capital gains made during the administration period
- In certain circumstances, we may recommend that distribution of the estate is delayed until 6 months after the issue of the Grant of Probate/Letters of Administration
We estimate that this stage will take between 4 weeks and 6 months, but it may take longer.
Basis of Charging
Our fees are made up of two parts:
- the time spent on the matter at the rate of £250 per hour (“the time element”)
- a charge based on the gross value of the estate (“the value element ”) comprising:
- 0.75% of the value of real property owned by the deceased at the date of death (i.e. residential property; land; commercial property)
- 1.5% of the value of the remainder of estate (i.e. everything that is not real property) if we are acting as Personal Representatives
- 1% of the value of the remainder of estate if we are not acting as Personal Representatives
The time element and the value element are then added together to make our total fees to which VAT is added.
Disbursements in Addition to our Fees
Disbursements are costs related to your matter that are payable to third parties, such as court fees. We handle the payment of the disbursements on your behalf to ensure a smoother process. Disbursements include but are not limited to:
- Probate application fee: £155 (plus 50p per sealed copy of the Grant)
- Oath swearing fee: from £5 per Personal Representative
- Bankruptcy-only Land Charges Department searches: £2 plus VAT per beneficiary
- Statutory advertisements in The London Gazette and a local newspaper (protects against unexpected claims from unknown creditors): £200 to £400 plus VAT
- Financial Asset Search: £145.80 inc VAT (if required)
- Official copy of Land Registry Title: £3 plus VAT per Title