When dealing with the loss of a loved one, handling the legal and financial responsibilities of their estate can be daunting. One of the most important questions that arises is, “How much does probate cost?”
Understanding the associated costs can help families better prepare for the process ahead. Here’s an in-depth look at the factors that influence probate fees and why professional guidance can be invaluable.
What is Probate?
Before diving into costs, it’s helpful to understand what probate entails. Probate is the legal process of proving a deceased person’s Will and appointing the executor or, in cases where there is no Will, a personal representative to administer the estate. The executor’s duties include valuing the estate, settling debts and taxes, and distributing assets to beneficiaries.
The process can vary significantly in complexity depending on the size and nature of the estate, whether there are disputes among beneficiaries, or if there are unusual assets, such as foreign property or trust arrangements.
Do you always need Probate?
Not every estate requires a Grant of Probate. In some cases, especially when the estate’s value is relatively small or all assets are jointly owned and pass automatically to the survivor, probate may not be necessary.
However, more complex estates—particularly those involving property, multiple bank accounts, or investments—almost always require a Grant of Probate. Consulting with an experienced solicitor early on can help clarify whether probate is needed.
Cost breakdown: How much does Probate cost?
The cost of probate depends on several factors, including the complexity of the estate and the services required. Here is a general breakdown, of Laker Legal`s legal costs for probate and intestacy :
Basic Probate Application Costs
- Probate Registry Fee: If the estate is valued over £5,000, a fee of £300 applies. Estates below this value are exempt from the fee.
- Office Copies of the Grant of Probate : £1.50 per copy, with one typically needed per asset.
- Legal Costs for Probate or Intestacy : Legal fees for probate or intestacy work at Laker Legal are determined by the complexity of the estate rather than its size, providing a more equitable and transparent approach.
- Most Experienced Solicitors: Up to £270 per hour plus VAT (currently at 20%).
- Other Practitioners: Ranging from £175 to £280 per hour plus VAT, depending on experience.
Fixed fee services
For straightforward, uncontested estates, Laker Legal offers fixed fee options as follows :
Simple Probate (Non-Taxable Estate): £1,500 to £2,500 plus VAT, covering estates with limited bank accounts, no property sale, and no report to HMRC by way of IHT400 being required.
Complex Estates: £3,000 to £5,000 plus VAT, for estates requiring a full inheritance tax return (IHT400) and involving more assets
Very complex Estates : £5,000 plus VAT upwards, for estate where a full inheritance tax return (IHT400) is required, involving high level assets and where there are complex arrangements in connection with the estate to consider as part of the administration process.
Disbursements :
These are additional costs paid to third parties, such as:
Probate Court Fees: £300 for estates over £5,000.
Trustee Act Notices: Typically £200 to £400 plus VAT, used to protect against future claims on the estate.
Telegraphic Transfer Fees: £42 including VAT, when transferring significant sums of money.
ID Verification Charge: £42 including VAT.
Bankruptcy Searches: £2 per individual to ensure no debts will impact the estate distribution.
When Might Probate Costs Increase?
The probate process becomes more costly if any of the following circumstances apply:
Inheritance Tax Liability: Estates over £325,000 may be subject to inheritance tax. Calculating and paying this tax, and completing the necessary forms (like IHT400), adds to the complexity.
Property Sales: If the estate includes property that needs to be sold, conveyancing fees will apply and are charged separately.
Foreign Assets or Complex Investments: If the estate has international property or multiple investment portfolios, additional expertise and time will be required.
Will Disputes: If the Will’s validity is challenged or if there are disputes among beneficiaries, legal costs can rise significantly.
Intestacy: When someone dies without a Will, the rules of intestacy apply, often complicating the administration and increasing costs.
Why consider professional help?
Administering an estate can be time-consuming and emotionally taxing. While it is possible to handle probate without legal assistance, many choose to hire a solicitor, especially when:
- The estate is subject to inheritance tax.
- There are complications, like a contested Will or assets in multiple jurisdictions.
- They want peace of mind knowing that all legal obligations are met.
Laker Legal’s experienced solicitors ensure the probate process is handled efficiently, minimising delays and helping to avoid costly mistakes. They keep clients informed throughout, ensuring transparency and clarity.
Laker Legal’s approach to Probate costs
Laker Legal believes in providing fair and reasonable pricing. Unlike some firms that charge a percentage of the estate’s value, we base our fees on the complexity of the work required. We also offer an initial consultation to discuss your specific needs and provide a detailed estimate.
