Administration of estates pricing
We deal with many hundreds of estates per year, all of which are entirely different. No two probates/administrations are the same.
Costs of the administration of estates can vary greatly between small and straightforward estates with few legacies and assets, to very high value and complex estates involving numerous assets, beneficiaries and potentially foreign investments, and can range from £1,000.00 to £40,000.00 plus VAT at the prevailing rate of 20% (£1,200 to £48,000 in total). However, the average cost of the administration of estates based on our experience over the year ending March 2024 is approximately £5,000 plus VAT where applicable at the prevailing rate of 20% (£6,000 in total).
The work represented by these charges includes dealing with all matters in relation to court applications, all matters in relation to HM Revenue & Customs connected to Income Tax, Inheritance Tax and Capital Gains Tax, distribution of legacies and residue, and a full set of estate accounts and appropriate tax deduction certificates at the end of the matter.
Our fees are based on 1% of the estate plus time charged at £180.00 per hour, which is broken down into units of 6 minutes, plus VAT at the rate of 20%, which equates to £216 per hour.
Charging a percentage value of the estate means that we are able to apply competitively low hourly rates to our work.
Specialist intestate estate administration
We are specialists in administering complicated high risk intestate estates, where individuals are believed to have died without a will. Due to the complexities and increased risks involved in administering estates of this nature, this is reflected in the legal costs we charge.
Our fees to administer intestate estates are based on 2% of the estate plus time charged at £180.00 per hour, which is broken down into units of 6 minutes, plus VAT at the rate of 20%, which equates to £216 per hour. Where one of our solicitors agrees to act as attorney, the hourly rate charged is £220 plus VAT at 20%, which equates to £264 per hour.
Expenses
Additional expenses that we pay out on your behalf are likely to include: Probate Court Fees – the standard fee at the moment is £300.00, plus additional copies at £1.50 each. Bankruptcy search fees – these are needed to check that people receiving legacies and a beneficial entitlement are not bankrupt – £2.00 plus VAT at 20%, making a total of £2.40 per person. The cost of statutory notices for creditors varies, depending on the region and publication, but is likely to be between £200 and £500 plus VAT at 20%, making a total of between £240 and £600.
In intestate estates, further expenses might be incurred in their administration, such as Land Registry fees (the amount of which will depend on the number of properties involved, whether they are leasehold or freehold, and whether there are any mortgages or charges on the property – but they will start at £6 and could extend to several tens of pounds, depending on the above and subject to VAT at 20%), caveat fee (£3 per six month period), Royal Mail Redirection Service (£87 for 12 months), Missing Asset Search (£165 plus VAT at 20% making a total of £198), Missing Will Search (£349 plus VAT at 20% making a total of £418.80), Missing Will and Missing Beneficiary Insurance (the cost of which varies according to risk, value and number of heirs, ranging for £224 including IPT to £10,000 including IPT), property clearance costs (which vary from prices in the region of £1200 to £20,000 inclusive of VAT at 20%) and estate agents’ fees which vary considerably based on a percentage of the sale price, or a fixed fee.
Additional services and disbursements may be incurred by the Estate but this is dependent on what the Estate involves and is reviewed on a case by case basis. Additional searches, protections and the involvement of other agents may be required in the Estate Administration as a whole, dependent on what the Estate includes, but you will be provided with the cost information before additional costs are incurred by the Estate.
On intestate matters, we will not require you to make any of these payments up front and the Estate will be fully liable for all costs and disbursements incurred.
No two estates are ever exactly the same and our charges for a specific case will always reflect the individual cases. Consequently, we cannot give a reliable estimate of the cost of our assisting with the estate until we have full details of it, and will always give you an individual cost estimate at the start of our involvement, taking into account the actual features of the estate in question. Of course, if a particular estate does have unexpected complications, we will inform you about it immediately, and would fully discuss the potential consequences of that before any additional charges were incurred.
To contact one of our lawyers about your case, and to find out more about the costs that might be incurred, please contact us by emailing [email protected] or calling 01484 821 500.
