Private Client

We have a well-established department able to administer estates whether or not a Will has been made. After death it is important that the estate is administered efficiently and with sympathy.

Not only does the administration of an estate involve valuing all the assets of the estate but also the Inheritance Tax liability and dealing with the Inland Revenue. Through our network of professional associates we are also able to ensure access to specialist tax planning and trust advice, assistance with Inheritance Tax, Capital Gains Tax and value of lifetime gifts and Trusts.

Our private client team advise in relation to both Property and Financial Affairs and Health and Welfare Lasting Powers of Attorney. Their expertise also extends to Court of Protection applications.

In order to access a deceased person's assets, known as their estate, you will often need to apply for a Grant. This could be a Grant of Probate (in cases where there is a will) or a Grant of Letters of Administration (where the deceased did not leave a will; referred to as intestate). A brief outline of the key stages and timescales of the work involved in these applications is as follows: 

Key stages

• Ascertain the value of the Estate for Court and for Inheritance Tax purposes. 

• If required, submitting an Inheritance Tax Return to the Inland Revenue, making best use of the available exemptions and reliefs, and paying Inheritance Tax.

• Prepare and submit the application for, through to obtaining from Court, the Grant.

• Registering the Grant with the appropriate authorities, and collecting in the assets of the Estate.

• Settling estate debts, and finalising tax liabilities and obtaining clearances (if necessary).

• Distribution of specific gifts in the will.

• Preparation of final Estate Accounts and distributing the balance of the Estate to the main beneficiaries. 

Timescales

By way of example, an estate can be dealt with within 8 to 12 months. 

It can take around 4 to 5 months to get to the point of the Court providing the Grant. Due to problems encountered by the Court Service this aspect has been taking longer, as has been well publicised, but recent experience indicates the time taken by Court might be reducing. 

The estate assets must then be collected, estate debts paid, the tax position (Inheritance Tax, Capital Gains Tax and Income Tax) finalised, specific gifts distributed, Estate Accounts prepared and approved by those who obtained the Grant and the main beneficiaries, and the estate distributed. This can take between 4 months for a very simple estate and up to 7 months for a routine tax paying estate including conveyancing. This aspect of the administration can take longer, e.g. up to year, where the estate involves, for example: a complex Will, there are a lot of beneficiaries, the beneficiaries do not agree, there is foreign property, or a mixture thereof, amongst other things. 

The above timescales are not set. Every estate is different, and those differences will have a bearing on the time it takes to conclude the administration of the estate. 

Costs and Disbursements

Our fees are calculated by reference to the time spent dealing with the matter. Time spent is recorded and is charged in minimum units of 6 minutes for each routine letter and telephone call made or received. Longer letters and telephone calls are charged on a timed basis. Our current hourly charge rate is £295.00 per hour subject to VAT at the current rate of 20%.

It is difficult to estimate the fees that will be incurred in these matters, as this will depend on whether there is a will, what assets and liabilities make up the estate and the manner in which others deal with our enquiries. We will be able to provide a more tailored quote upon receipt of instructions, but as an estimate we advise to allow for the following:

• 1 hour per asset

• 1 hour per beneficiary

• 4 hours for preparation of IHT Return and supplements (if applicable)

• 3 hours for handling the Inheritance Tax liability (if applicable)

• 2 - 4 hours for drafting the Estate Accounts and distribution of funds

If the matter becomes exceptionally complex or involves unforeseen work, then we reserve the right to review our charges. An example of this is if there are disputes between the beneficiaries on division of assets.

Our charges will also contain an element based on the value of the estate. This is because the value is a reflection of the importance of the matter and, consequently, the responsibility on the firm. This element is calculated on the basis of the gross value of the estate and will be between 0.25% - 1% of the gross value of the estate plus VAT. The percentage will be considered and agreed between us at the outset of the matter.

Where any expenses are incurred over and above our fees these are known as disbursements. Commonly these include the following: 

Probate court fees - £300.00 (plus £1.50 per copy)

Inheritance tax - To be advised

Bankruptcy searches - £2.00 per person

Bank transfer fee - £40.00 plus VAT per transfer

If the estate includes a property which is sold, there will be additional charges for the conveyancing work. Please refer to our residential property page in order to obtain a quote for the same.