Our Probate Service – what we can do for you
1. How long will it take? - We are working hard to speed it up.
It often takes ages to deal with the estate of someone who has died. Beneficiaries sometimes have to wait a year or more before they see a penny and whilst this can never be a quick job we are working hard to speed it up.
Much of what we need to do depends on receiving information from others, such as banks, registrars, HM Revenue & Customs and so on, but we take the view that slowness must never simply be accepted. We have designed and implemented systems that chase responses and we push the work on with determination. As a result we generally succeed in concluding most cases in a matter of months.
Each person is unique and whether their affairs are complicated does not depend on how wealthy they may have been. We can work faster if everything we need is to hand. Things might stretch out a bit if, for instance, assets are hard to find or to value or are situated overseas or if the beneficiaries are young or cannot be traced. However, we see speed as a key element in our service and work hard to keep things moving at all times.
We also make it a priority to keep clients fully informed of progress throughout.
2. How much will it cost? - Our fees are transparent and we always agree them with you at the outset.
We try hard to keep your costs as low as we can but this kind of work is time-consuming and carries a great deal of responsibility. Our fees are transparent though and you can see exactly what they will be before you instruct us. We confirm everything in writing.
Fees are based on the gross capital value of the estate and these are the maximum levels:
On the first £500,000 1.50%
On the next £500,000 0.75%
In excess of £1,000,000 0.50%
All fees are subject to VAT.
Please also bear in mind that even for small estates much of the same work required still has to be done and so the fees cannot be below these levels:
A minimum fee of £500 + VAT to obtain the Grant
A minimum administration fee of £950 + VAT
Finally, when assets are jointly owned and we face little or no work in passing them to a surviving joint-owner, we specifically exclude their value from these calculations.
3. Why Use a Solicitor?
It is just about possible for an organised, intelligent and determined person to handle the administration of an estate themselves but there are many pitfalls. If you are thinking of doing so please keep these points in mind:
a) Tax can be taxing
Executors are responsible for the payment of all the necessary tax on the estate and will have to read up on the rules – they are highly complex. And if an executor makes even an innocent mistake he or she will be personally liable for the unpaid tax and any penalties. Clients often come to us in a real mess after trying to do things themselves. In one recent case we claimed back over £4,000 in tax that should never have been paid. When we do the work we take on all this responsibility.
b) Assets
You will also be fully accountable to the beneficiaries for everything you do; executors have a very clear duty of care. We have known of assets such as paintings and antiques sold for what seemed to be the right price at the time. When it was later realised that they were in fact much more valuable the executors faced legal action by the beneficiaries for alleged failure to take proper care and claiming the shortfall. Even if the executors eventually won the case they faced years of stress and significant legal costs defending themselves. Probate litigation is a growing area in legal practice and we lawyers sadly see some truly vicious battles within families over wills and estates. When we do the work all this responsibility rests on us.
c) Time
The administration of an estate can take as much as fifty hours in the hands of an experienced lawyer. If you don’t know the rules and need to read it all up as you go it can be far longer.
d) Expertise
We quite often find ourselves advising executors and beneficiaries on steps that will, perfectly lawfully, reduce the amount of tax payable. There may well be things you can do but you may not be aware of them.
e) Risk
To put it simply, if you make a mistake, you carry the can. If we do, which is far less likely anyway as this is our area of expertise, we are regulated and must take full responsibility. To protect clients we carry very significant insurance cover. Clients are fully protected against loss when dealing with a properly regulated law firm such as Harold Michelmore.
Finally, you may be offered estate administration by your bank or some other large organisation. Before you decide, look at their fee structures in detail, as there are often hidden costs that are not apparent at first glance. Ask what guarantees they give as to how long the case will take. And then ask yourself whether you would rather deal with a huge call centre operation, in which you can rarely speak with the same person twice, or with a caring solicitor who you can get to know and who you can talk to face to face or on the phone whenever you need to.
© Harold Michelmore & Co 2007
Please note that the information and advice in this Note is provided for general guidance only. We believe it is accurate and up to date, but you must seek personal advice on any specific case or matter. We cannot accept liability for your reliance only on information or advice in this note.