Guide to Estate Administration and Our Probate Pricing Structure

When someone passes away, they either die testate (with a valid Will) or intestate (without a valid Will).

• If they die testate, the Will appoints executors to administer the estate and ensure assets pass to the named beneficiaries.
• If they die intestate, the law determines who will act as administrator and who inherits the estate.

Administering an estate can be time-consuming and complex. Many families appoint a probate solicitor to assist with the legal, tax, and administrative requirements.

We are required to provide cost information for our probate services. A guide is included at the end of this note. There is a no ‘one size fits all’ quote when it comes to estate administration and so for a tailored quote, we invite and encourage you to book a free 30-minute, no-obligation consultation with one of our solicitors.

Key Stages of the Probate Process and Typical Timescales

Stage 1 – Information Gathering (8–16 weeks)

• Contact banks, financial institutions, pension providers, and other organisations to obtain probate valuations of assets and liabilities.
• Arrange professional valuations for property, shares, or other investments if required.
• Notify banks of the death (accounts will be frozen until probate is granted).
• Request release of funds for funeral expenses and/or inheritance tax (requires original funeral invoice).

Timescale depends on estate complexity and response times from third parties. We provide regular updates throughout.

Stage 2 – Inheritance Tax (4–8 weeks)

• Prepare the inheritance tax return (usually IHT400 for taxable estates or IHT205 for excepted estates).
• Submit the return to HMRC and arrange payment of any tax due.
• HMRC now issues an acknowledgement letter with a unique probate code (instead of the old Form IHT421). This code is required for the probate application.

If the estate is not taxable, this stage may be shorter.

Stage 3 – Applying for the Grant of Probate (6–12 weeks)

• Draft probate application forms and send to Executors/Administrators for approval and signature.
• Submit to the Probate Registry (HMCTS).
• Grant of Probate or Letters of Administration usually issued within 12 weeks, though delays can occur if further information is requested.

Stage 4 – Collecting Assets and Paying Liabilities (6–8 weeks or longer)

• Register the Grant with banks and institutions.
• Close accounts and realise investments.
• Pay outstanding bills and debts.
• If property needs to be sold, this stage can take significantly longer depending on the sale process.

Stage 5 – Winding Up the Estate (6–20 weeks or longer)

The final stage of estate administration involves several important steps:

a. Finalising the Income Tax Position

• We must confirm the deceased’s income tax position for the administration period and pay any additional tax due.
• This usually arises if interest or income is received during administration.
• To complete the income tax return, we need tax certificates and vouchers from banks and other organisations. Some institutions can be slow to provide these documents, and HMRC processing times vary depending on the tax office involved.
• Timescale: up to 20 weeks.
• We may retain a sum of money on account to cover any tax liability and distribute the balance to beneficiaries. If no further tax is due, the retained funds will be released later. If tax is payable, we will advise you before final distribution.

b. Department for Work and Pensions (DWP) “Two-Month Rule”

• The DWP has two months from the date of the Grant of Probate to make a claim against the estate.
• They may check whether the deceased correctly declared assets during their lifetime. If undeclared assets resulted in overpaid benefits, the DWP can claim repayment from the estate.
• Distributing the estate before this period expires is not recommended, as any claim would be the Executors’ responsibility.
• If our firm is appointed as Executor, we will not distribute until the two-month period has expired. Other limitation periods may also apply, and we will advise you on these.

c. Preparing Final Estate Accounts and Distributing Assets

• We prepare detailed estate accounts showing all monies received and paid.
• Distribute funds to beneficiaries or transfer assets (e.g., property or shares) into their names.
• Timescale: typically 6–20 weeks, but longer if tax affairs are complex or delays occur beyond our control.

Additional Considerations

• If our firm acts as Executor, we will not distribute the estate until 10 months have passed from the date of the Grant of Probate.
• This is because claims under the Inheritance (Provision for Family and Dependants) Act 1975 can be made within that period.
• Some beneficiaries choose to fund early distribution insurance to receive their inheritance sooner.

Pricing and Costs

Grant of Probate / Letters of Administration – Application Only

Fixed Fee: £995 plus VAT (currently 20%) = £1,194, plus disbursements.

Our service includes:

• Calculating the size of the estate and any tax liabilities based on valuations provided by you.
• Completing the application, including the statement of truth.
• Obtaining the Grant and providing copies so you can administer the estate.

Important:

• This fixed fee applies only where the estate is not subject to inheritance tax or other complications.
• Where inheritance tax applies, a “one-size-fits-all” fixed fee is not possible. Costs depend on the complexity of the case.
• As a guide, legal fees for such matters are typically £2,000–£4,000 plus VAT and disbursements.
• If we are instructed only to obtain the Grant in a taxable estate (and not to administer the estate), fees may be charged on a time-spent basis at the hourly rates below.

Factors affecting cost include:

• Whether inheritance tax reliefs are claimed.
• Number of assets in the estate.
• Lifetime gifts made by the deceased.
• DWP investigations.
• Missing assets or additional searches.
• Valuation requirements.
• Executor disagreements.
• Foreign or company assets.

Grant of Probate / Letters of Administration – Full Administration

When handling full estate administration, we offer three pricing options following consultation:

1. Hourly Rate – Based on time spent at the rates below.
2. Fixed Fee Within Scope – Provides cost certainty for work within agreed scope.
3. All-Inclusive Fixed Fee – Complete certainty; all cost risk sits with us.

Hourly Rate Option:

• We cannot guarantee the total cost, as this depends on complexity and unforeseen issues.
• We will resource the matter cost-effectively and keep you informed of progress and costs.
• We may also charge a value element: up to 1.5% on cash assets and 0.75% on property, plus VAT.

Fixed Fee Options:

• Fixed Fee Within Scope: If work overruns but remains within agreed scope, we absorb the cost.
• All-Inclusive Fixed Fee: Complete certainty; even if scope changes, we absorb additional cost.

Note: Under a fixed fee arrangement, you may pay more than under hourly billing, but the agreed fee remains fixed regardless of time spent.

Guidance on Hourly Rate Costs (Typical Ranges)

(Excludes property sale costs)

• £4,000–£6,000 plus VAT (£4,800–£7,200) + disbursements + potential value elementSimple UK estate under £200,000, fewer than 3 institutions, one residential property, valid Will.
• £6,000–£18,000 plus VAT (£7,200–£21,600) + disbursements + potential value elementEstate £200,000–£1,000,000, fewer than 4 beneficiaries, one residential property, valid Will.
• £10,000–£45,000 plus VAT (£12,000–£54,000) + disbursements + potential value elementComplex estate: inheritance tax liability, multiple legacies, foreign/business assets, multiple properties, tax relief claims.
• £15,000–£70,000+ plus VAT (£18,000–£84,000+) + disbursements + potential value-elementHighly complex estate: foreign property and/or beneficiaries, significant assets, trusts.

Factors that can increase fees and timescales:

• DWP investigations.
• Missing beneficiaries or assets.
• Executor or beneficiary disputes.
• Claims against the estate.
• Complex tax issues.
• Intestacy or variations to the Will.
• Trusts within the estate.

Disbursements (Third-Party Costs) – please note that disbursement costs are outside of our control and can change without notice

• Probate court fee: £300 (additional copies £16 each).
• Land Registry title documents: £4 + VAT (£4.80).
• Bankruptcy search: £3 + VAT (£3.60).
• Missing asset search: approx. £150–£200 + VAT (£180–£240).
• Legal notices to creditors: approx. £180–£250 + VAT (£216–£300).
• Certainty Will Search: £99 + VAT (£118.80).

Hourly Rates

• Partner: £350–£370
• Associate: £290
• Solicitor (under 5 years PQE): £270
• Solicitor (under 2 years PQE): £235
• Trainee: £210
• Paralegal/Legal Assistant: £195

VAT is charged at 20%. Rates are reviewed annually, and any changes will be notified. Your matter will be supervised by a senior colleague (Partner or Associate), with routine work carried out by junior solicitors, trainees, and paralegals to ensure efficiency and availability.