Wills & Estates

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Our Private Client Fees

The table below shows an estimate of our Private Client fees. The rate charged for non fixed fee work will be calculated at £295 per hour + VAT. If you require further information please do not hesitate to speak with a member of our team on 01202 842 929

 * Court Fee of £82 per document is payable for all LPA’s

ADMINISTRATION OF ESTATES PRICES AND PROCEDURES

MJP Law can deal with (1) Grant of Representation only and (2) Full Administration

Fixed Cost for Grant of Representation Only

1) What is included in this service?

This is a fixed cost service where you will be expected to provide all the information required and we will:-

·        prepare the Inheritance Tax (IHT) paperwork and the Oath/Statement of Truth for the Personal Representatives to sign

·        send the forms to HM Revenue & Customs and the Probate Registry

·        Forward the Grant to you to administer the Estate yourself

2) What is not included in this service?

Our instruction is limited to the production of documents only.  We will not advise on the actions of the Personal Representatives or the testator.  We will not settle any liabilities on your behalf and we do not hold any funds on behalf of the Estate.

3) How much will this service cost?

The fixed cost will depend on the nature of the IHT return required and whether IHT is payable.  This is set out in the table below:

Grant Only (IHT205 or no IHT400 required) from £995.00 + VAT (£1,194.00)

Grant only (IHT 400 non-taxable) from £1,500 + VAT (£1,800.00)

Probate Grant only (IHT400 taxable) from £2,000 + VAT (£2,400)

Please note where there are unusual assets or circumstances or extra work is requested we will quote separately on a time spent basis for that work. Our fee assumes that there are no unforeseen matters arising such as the Will being contested and that all Executors are co-operative.

Disbursements (see other costs not included in our fees below)

4) Key Stages and likely timescales

Timescales for Grant of Representation only.  The timescale for obtaining the Grant of Representation will depend on whether an IHT application will need to be sent to HMRC first or whether it can be sent to the Probate Registry along with the application for the Grant.  We can only commence work when you have provided us with all the information required.

If the application needs to be sent to HMRC first, then obtaining the Grant of Representation will typically take 8-12 weeks.

If the application does not need to be send to HMRC first, then obtaining the Grant of Representation will typically take 4-8 weeks.

Full Administration of an estate with or without a Will

1) What is included in this service?

We will deal with the following:-

·        Write to all the asset/liability holders

·        Notify any interested parties (e.g. pension and utilities) of the death

·        Submit statutory notices to protect the Personal Representatives from creditors

·        Prepare and file the Inheritance Tax Return; Settle any Inheritance Tax due; Deal with any enquiries from HM Revenue & Customs relating to the IHT Return

·        Prepare the Probate papers and arrange for them to be sworn/signed

·        Make the application for Probate with the Probate Registry and obtain the Grant of Probate

·        Collect in all the assets including the proceeds of sale of property

·        Settle all debts, taxes and liabilities

·        Bankruptcy searches against beneficiaries

·        Pay any pecuniary (cash) legacies and ensure specific gifts are gifted as instructed in the Will

·        Make any interim distributions with the agreement and indemnity of the Executors

·        Gather information about the income of the deceased and for the period of administration

·        Prepare Estate Accounts and once approved distribute the Estate to the remaining residuary beneficiaries

·        Certify or confirm the beneficiaries share of income received in the Estate

2) What is not included in this service?

·        If the Estate becomes a contested Estate case

·        Dealing with the transfer or sale of any property or business interests in the Estate

·        Dealing with any Deed of Variation to the Estate

·        Dealing with any Trust that relates to the Estate

3) What will the overall cost be?

Our charges for a full Estate administration service will depend on the circumstances of the case and the amount of work required as well as the hourly rate of the person carrying out a particular item of work. At the outset we will inform you of the hourly rate of the person(s) acting on your behalf.

The hourly rates vary from £150.00 + VAT @ 20% for a junior paralegal, to £295.00 + VAT @ 20% for a Grade A Solicitor/Fee Earner.

Our charges are calculated upon the amount of time spent on the matter and the value of the Estate plus any disbursements incurred on your behalf.

When this firm is appointed to act as Executor to an estate we charge a value element in addition to our usual hourly rates:-

·        1.5 % will be applied to personalty (a person’s personal property, i.e. goods, chattels, movable property, savings / investments)

·        1% is charged for realty, property owned by the individual (immovable property).

·        VAT @ 20% is payable on both the time and value charges.

4) Other costs not included in our fees

Disbursements (Fixed Cost and Full Administration)

Disbursements are costs related to your matter that are payable to third parties.  In addition to the costs above the following disbursements will be payable:-

Probate Court Fee - £300.00 plus an additional £1.50 for each copy

Additional Sealed copies of the Grant to send to asset holders - £1.50 each

Statutory Notices in London Gazette and local paper to protect the Personal Representatives against unexpected claims from unknown creditors and estate claims - £75.00 – £220.00

Bankruptcy Search against UK resident beneficiaries - £2.00 per person

Bankruptcy Search against overseas beneficiaries - An estimate will be provided

Land Registry Search Fees - £3.00

Missing Beneficiary Insurance - Quoted per specific situation

Executors’ Insurance (general and for early distribution) - From £325.00

FAS Landmark search for missing/forgotten assets - Around £150.00

Taxes (Fixed Cost and Full Administration)

You may need to pay taxes in the administration of the Estate in addition to the payment of our fees.  A non-exhaustive list is set out below:-

·        Inheritance Tax

·        Capital Gains Tax

·        Income Tax

·        Stamp Duty Land Tax

5) Key stages and likely timescales

The Administration of an Estate generally falls into two stages:-

·        Obtaining the Grant of Representative (the authority to administer the Estate)

·        Administering the Estate

Applying for the Grant of Probate, Collection and Distribution of Assets

For a straightforward Estate, we anticipate that this will take between 30 and 40 hours work, charged at £295.00 + VAT @ 20%. Total costs estimated for an Estate administration are between £8,500 and £12,500 + VAT @ 20%.

The Exact cost will depend on the individual circumstances of the matter. For example, if there is one beneficiary and no property, costs will be at the lower end of the range. If there are multiple beneficiaries, a property and multiple bank accounts, costs will be at the higher end.

Whilst this is not an exact guide, our charges are normally fall between 1.5% and 2.5% of the Gross Value of the Estate. The Gross value of the Estate is the value of the Estate before any liabilities are deducted. 

We will handle the full process for you. This estimate is for Estates where: -

1. There is a valid Will;

2. There is no more than one property;

3. There are no more than 4 bank or building society accounts;

4. There are no other intangible assets;

5. There are 3 UK based beneficiaries;

6. There are no disputes between beneficiaries on the division of the assets. If a dispute arises it is likely to lead to an increase in fees;

7. There is no Inheritance Tax payable to HMRC and the Executors do not need to submit a full account to HMRC (IHT 400); and

8. There are no claims being made against the Estate.

Disbursements included in this fee (where applicable VAT is included at 20%):

1. Probate application fee of £300. Additional copies are charged at £1.50 per copy.

2. For UK Beneficiaries Bankruptcy Searches are £2.00 per beneficiary.

3. ***Trustee Act Notices*** £200.00 + VAT

Disbursements are costs related to your matter that are payable to third parties. We handle the payment of the disbursements on your behalf to ensure a smoother process.

***Trustee Act Notices to Claimants***

 If the Personal Representatives mistakenly pay money to the wrong people, for example because they did not know of a debt or legacy under a later Will or Codicil, then they must usually pay the right people out of their own pockets and then try to recover the money from those persons who have been wrongly paid.  The law allows Personal Representatives to advertise for Claimants and, provided certain conditions are met, then to distribute the Estate.  This only protects the Personal Representatives in their capacity as Personal Representatives however, and so if anyone has a valid claim against the Estate he or she can still pursue this but now against the beneficiaries direct.

 The statutory advertisements are placed in both the London Gazette and the local paper.  The significance of these statutory advertisements is that following the expiry of the two-month notice period, the Personal Representatives are no longer personally liable for any debts. 

Potential Additional Costs:

If there isn’t a Will;

1. If the Estate consists of any share holdings (stocks and bonds);

2. If there are overseas elements to your matter. This includes overseas assets and overseas beneficiaries or Executors; and

3. Dealing with the sale or transfer of any property in the Estate is not included in the above quotation.

How long will this take?

On average, Estates that fall within this range are dealt with within 15 to 18 months. Typically, obtaining the Grant of Probate takes between 18 and 20 weeks. It is our advice to wait 10 months from the date the Grant of Probate is issued before distributing your Estate.

This will ensure that you as the Executor of the Estate will receive maximum protection against any claims brought against the Estate.

There are a number of factors which can prolong and increase the cost of administering an Estate including but not limited to:-

·        Difficulty in finding Beneficiaries and need to be traced

·        There is a property which takes a long time to sell

·        There are prolonged enquiries from HMRC or other Government bodies e.g. DWP

·        Where there is no Will

If there is Inheritance Tax payable on your Estate, our timescales can be significantly longer as it will take additional time to settle the Inheritance Tax liability and obtain HMRC’s approval of the amount paid. Please note we require HMRC’s approval before Probate can be applied for.

ADDITIONAL SERVICES WE OFFER:-

Deed of Renunciation - From £200 + VAT @ 20%

Notice of Power Reserved - From £50 + VAT @ 20%

Lost Asset Search - From £150 + VAT @ 20%

Deed of Variation - From £400 + VAT @ 20%

Deed of Appointment to terminate Nil Rate Band Discretionary Trust - From £500 + VAT @ 20%

Deed of Appropriation - From £200 + VAT @ 20%

Completion of deceased’s Income Tax Return and obtain Lifetime Clearance from HMRC - An estimate can be provided

Resolving Will Defects - An Estimate can be provided