Probate and administering an Estate

Although many estates appear to be quite straightforward, the list of tasks to be dealt with following a death can be daunting – especially whilst dealing with the loss of a loved one. It can be difficult to know where to start and what to do.

Here at Dodds our team of Wills and Probate Solicitors can sympathetically and efficiently help you to deal with any part of the process – allowing you the time to grieve.

What is Probate?

The word ‘Probate’ is often used to describe the whole process of sorting out the ‘estate’ of a person who has died which can be a little misleading.

A Grant of Probate is a document, issued by the Court, which is evidence that the person(s) named in it can legally deal with the deceased person’s ‘estate’.

A Grant of Probate is only issued by the Court when the deceased person left a Will. If there is no Will then a grant of ‘Letters of Administration’ is issued instead.

Both types of ‘Grant’ are effectively Certificates which are stamped with the Court Seal and which name the person(s) who will deal with the deceased’s affairs.

What is the ‘Estate’?

The ‘Estate’ is simply everything that is owned by a person who has died and may include, for example:

• Property – their home or land;
• Money – this can be cash in the home or money held in bank or building society accounts;
• Stocks and shares;
• Premium Bonds or other National Savings Investments;
• Personal possessions such as a car, jewellery, paintings or other valuables in the home;
• Life insurance policies (if they don’t pay out to a specified person);
• Money owed to the person who has died.

When is it necessary to obtain a Grant of Probate or Letters of Administration?

In many cases, sorting out the affairs of a loved one who has passed away will be straightforward and it may not be necessary to obtain a Grant. For example, a married couple may own a house jointly and have all of their investments in joint bank accounts. Should one of them die then assets held in this way pass automatically to the survivor.

A Grant is usually required if there is property in the estate such as a house, flat or land held in the sole name of the deceased or if there are savings or investments over a certain level in the deceased person’s sole name.

Administering an Estate

The process of ‘administering’ an Estate can be complex and time consuming depending on the individual circumstances of the deceased. The Executor or Administrator may need to carry out some or all of the following steps:

1. Establish if there is a valid Will in place. A Will should name at least one ‘Executor’ (although there can be up to four) and it is the Executor who is legally responsible for dealing with the administration of the estate. In cases where there is no Will the ‘Intestacy Rules’ apply. This set of rules lists, in order of priority, the next of kin who inherit the estate and who are also legally entitled to deal with the administration of the estate;

2. Identify all the deceased person’s assets (property, savings, stocks and shares, insurances and personal possessions) and all of their liabilities (debts such as mortgages, loans, utility bills, pension or benefits overpayments) to establish the value of the estate and also to verify who is entitled to inherit from the estate (for example, where assets are held ‘jointly);

3. Determine whether any Inheritance Tax has to be paid and, if applicable, arrange for the payment to be made to HM Revenue and Customs within the permitted time frame;

4. Once any Inheritance Tax has been paid or if the estate is not taxable then an application can be made for the Grant of Probate or Letters of Administration;

5. When the Grant is issued the Executor or Administrator can collect in the assets and pay any liabilities;

6. Before dealing with the distribution of the estate to the beneficiaries the Executor or Administrator must ensure that any Capital Gains Tax, Income Tax or additional Inheritance Tax is paid;

7. Prepare ‘Estate Accounts’ to show all payments into and out of the estate;

8. Finally, the estate can be distributed amongst the beneficiaries named in the Will or entitled under the Intestacy Rules.

Here at Dodds Solicitors our team offers a range of services from simply obtaining the Grant on your behalf through to dealing with the full administration process.

Grant only – fees

Our fees for obtaining a Grant are £1000 plus VAT (where no Inheritance Tax account is required). In addition, there is a Court Fee of £300 plus £1.50 for each extra Court Sealed copy of the Grant.

Wherever VAT is shown below it is payable at 20%.

Estate Administration – fees

All other services are charged on the basis of the amount of time spent and a full estimate is given at the outset. We do not charge a percentage of the value of the estate.

We offer full service and consultation services for Probate matters.

Full service administration

If we act as executors for the estate or deal with the whole process, the following is a guide to the likely costs, assuming:

• There is a valid will
• There is a single property
• There are no more than 5 bank or building society accounts
• There is no or a very limited share portfolio
• There are no business assets
• There are no other intangible assets
• There are 1-6 beneficiaries
• There are no disputes between beneficiaries
• There is no inheritance tax payable and the executors do not need to submit a full account to HMRC
• There are no claims against the estate

The work for an estate as described above could take 20-40 hours of work at a rate of between £250-£320 per hour depending on staff seniority. We estimate that charges would therefore be between £5000 plus VAT (£5500 total) and £12,800 plus VAT (£15,360 total).

We always ensure that your work is carried out by a member of staff at the appropriate level.

You should bear in mind that there are disbursements (costs payable to third parties) which we will pay on your behalf, which increase the final total cost.

Depending on all the circumstances, there may be other third party costs such as a property valuation by a chartered surveyor, estate agents commission on the sale of a property and conveyancing solicitors fees. Final cost depends on the circumstances. Costs will be lower if, for example there is one beneficiary and no property. Costs will be higher if there are multiple beneficiaries and multiple assets.

A more complex estate, for example requiring the payment of inheritance tax, will be more costly and, depending on all the factors could

Consultation services

We are always happy to assist with probate and estate administration as much or as little as required. If you would prefer to undertake some of the work yourself, you can make use of our ‘consultation service’ approach. This way you can access legal expertise only when you need additional support.

During consultation services, we only charge for the time that we spend working on your behalf, using our current hourly rates as set out below. If you prefer, we can agree a budget with us in advance for each piece of work we do for you.

You can change to our full-service administration at any time.

Key stages and Timescales

On average, timescales for the full administration of a straightforward estate can be finalised within 5-12 months. A simple estate with few assets could be achieved more quickly. A more complex estate may require in excess of 12 months.

Key stages of an estate administration are:

• Identifying assets and liabilities of the estate including obtaining date of death valuations
• Preparing a schedule of the estate assets and liabilities in advance of the application for the grant of probate
• Preparing and submitting the Inheritance Tax return (IHT 400) if required
• Applying for the grant of probate
• Providing a court sealed copy of the grant to each asset holder
• Collecting in or transferring the estate assets
• Paying estate liabilities (including inheritance tax if any)
• Contacting and identifying beneficiaries and distributing the estate in accordance with the terms of the deceased’s Will or intestacy provisions
• Dealing with the tax affairs of the estate for the administration period
• Preparing final estate accounts showing how all the assets and liabilities of the estate have been dealt with

Hourly Rates

Trainee/paralegal – £220 plus VAT (£264)
Solicitor – £250 plus VAT (£300)
Associate Solicitor – £270 plus VAT (£324)
Head of Department – £290 plus VAT (£348)
Member Partner – £320 plus VAT (£384)

Get In Touch

Give our team a call on 0116 201 8566 or contact us through our online enquiry form on our contact page.