The probate process, timeframes and costs

Probate is the process involved in dealing with the property, money and possessions of a person who has died. Depending on the nature of the assets involved, it can be very complicated.

We have extensive experience of handling high net worth estates involving complex tax issues. Many of the estates we administer include multi-jurisdictional assets and farms or business interests.

Our team takes a very proactive approach to dealing with the Probate Registry and HMRC and always endeavours to complete the probate process as swiftly as possible.

How does the probate process work?

Probate is the process involved in dealing with the property, money and possessions of a person who has died. The probate process is different depending on whether or not the deceased person had a will. The first step is to ascertain the assets and liabilities of the estate, complete any Inheritance Tax (IHT) returns and then obtain the grant (commonly referred to as the grant of probate where there is a will), which confirms that the personal representatives (the named individuals appointed by the deceased in their will to deal with the estate) have the authority to administer the estate of the deceased and can therefore access their bank accounts, sell assets and settle any debts. If the deceased did not have a will, then a grant of letters of administration is applied for instead and acts in much the same way as a grant of probate.

After obtaining the grant the assets – such as property or investments – can then be collected in and any debts paid. Once it is clear that there are no other claims against the estate, the personal representatives can consider making distributions to the beneficiaries, but they also need to deal with matters such as outstanding tax returns. Once all that is done, and any necessary clearances have been obtained from HMRC, the final distributions can be made as per the terms of the will (if there was one) or in line with the rules of intestacy.

If there is IHT to pay, this is due to HMRC six months after the end of the month of death. After that, interest is payable on any outstanding IHT. It is possible to pay IHT Tax on certain types of assets, such as land and some business assets, in 10 equal annual instalments (or until the asset is sold, if sooner). This can help with cash flow if an estate is made up of largely illiquid assets although HMRC charges interest currently at 7.75% on outstanding IHT.

How long does the probate and estate administration process take?

On average, estates can take up to 9 – 24 months to administer, depending on whether there are any HMRC enquiries into the Inheritance Tax Account, and assuming third parties provide relevant information promptly. The first step is to obtain the grant of representation (commonly referred to as probate), which confirms that the personal representatives have the authority to administer the estate of the deceased.

Typically, obtaining the grant of probate can takes up to 9 months from when we are instructed; collecting assets then follows and can take a minimum of 6 – 8 weeks, if straightforward. If a property needs to be sold, it will take much longer as a purchaser must be found, and the conveyancing transaction needs to complete.

HMRC clearances then have to be obtained which may take at least 3 – 4 months, after which the estate can be distributed. The distribution is dependent on advice concerning claims which could be brought against the estate, which might alter the date upon which the executors can distribute the estate.

How does any Inheritance Tax get paid?

If there is Inheritance Tax (IHT) to pay, this is due to HMRC six months after the end of the month of death. After that, interest is payable on any outstanding IHT. It is possible to pay IHT Tax on certain types of assets, such as land and some business assets, in 10 equal annual instalments (or until the asset is sold, if sooner). This can help with cash flow if an estate is made up of largely illiquid assets.

How much does probate cost?

We always tailor our services to your specific needs and unique situation. To determine how much the cost is likely to be, we first of all assess with you the type of service you want and need.

We will take time to understand how much help you would like and the nature of the estate involved, including the complexity of the will, assets and liabilities of the estate. We then calculate the number of hours we believe your matter will take and provide you with a best estimate, both in terms of the work up to obtaining the grant of probate stage and for the post grant work.

If it is unclear at the outset what will be involved, we will work on hourly rates until we can make a full assessment of the matter and then provide you with a cost estimate.

We understand what it means to lose someone, and the support and sensitivity which is needed when it comes to the probate process.

Dealing with an estate can vary enormously, so ensuring that you get the right type of support and probate advice is vital in making the process easier to manage. The process depends on the complexity of the will, the type and quantity of assets in the estate and how much work you want to do or have time to do yourself.

If you are dealing with probate you will need to assess the intricacy of the estate, your role in administering it and the type of support you need. We have helped generations of executors understand and navigate the process with our team’s expert probate advice.

We offer three types of services:

• A Grant only service on a fixed fee basis
• Executor support service where you choose which parts of the process you want to do yourself
• Full estate administration service.

Grant-only services are provided on a fixed fee basis and will involve us drafting the probate papers from the information that we receive from you. The fixed fee excludes any investigative work by us which we will be pleased to assist with, and this work would involve an additional charge. VAT is charged at the current rate of 20%*.

• Excepted estates – our normal charge for obtaining a Grant is £2,200 plus VAT at 20%, the probate court fee of £273 plus £1.50 per copy
• Non-taxable estate – our normal charge for obtaining a Grant in a non-excepted estate where no Inheritance Tax (IHT) is payable and an IHT400 is required is £4,250 plus VAT at 20%, the probate court fee of £300 plus £1.50 per copy
• Taxable estate – our normal charge for obtaining a Grant in a taxable estate requiring an IHT400 is £6,000 plus VAT at 20%, the probate court fee of £300 plus £1.50 per copy
• Probate resealing – our normal charge for resealing the grant of probate of a Commonwealth resident is £2,450 plus VAT at 20%, the probate court fee of £300 plus £1.50 per copy
• Estates of non-domiciled persons – our normal charge for obtaining a Grant to the estate of a non-domiciled person where an IHT400 is required is £4,800 plus VAT at 20%. the probate court fee of £300 plus £1.50 per copy.

The fixed fees assume that the personal representatives are able to provide full information in the Grant-only probate questionnaire together with all relevant documentation referred to in the above links, and that there is no requirement to undertake further investigation of the deceased’s estate.

In some cases, the replies given in the questionnaire may necessitate investigative work for which an additional charge on a time spent basis will be made,  which will be calculated by reference to our hourly rates.

Our hourly charge out rates

The charge out rates for our lawyers vary between £205 to £470 per hour plus VAT at 20%, depending on their experience and seniority. Our rates are reviewed in June of each year.

How long does a grant only probate service take?

For an excepted estate using our grant only service, once we have been given all of the information the time period to extract the grant is currently between 6 – 8 weeks.

For taxable and non taxable estates once we have been given all of the information the time period to obtain the grant is between 8 – 16 weeks, but it can be much longer if a paper rather than digital application needs to be made (for example, when there is no will.)

These time periods are not precise and should not be relied upon as we are reliant on HMRC and the Probate Registry. At present we are experiencing long delays with the issuing of grants, which is beyond our control.

What does a full estate administration service include and cost?

Probate costs can be difficult to estimate and will depend on the complexity of the estate and time spent on each task. At the outset, we will provide our best estimate of our costs, which will be based on our hourly rates and from the information we have. If, at any point, we are asked to do additional work (for example additional assets come to light or HMRC opens an enquiry into the Inheritance Tax account) our costs will increase.

Typically, for example, for a non-taxable estate, if there is one beneficiary, no property and the estate includes 5 – 6 straightforward assets such as a bank account, National Savings, 2 small shareholdings, life policy and a few low value personal chattels, costs may range from between £15,000 to £20,000 plus VAT at 20%.

If there are multiple beneficiaries, a property and multiple bank accounts and investments and the estate is taxable, but otherwise straight forward, costs may range from between £30,000 – £50,000 plus VAT at 20%.

The ranges illustrated, in some cases, may be higher due to the nature of the assets to be dealt with or negotiations with HMRC, time delays caused by third parties or because of the relationship between family members. The ranges given do not allow for any tax planning, conveyancing work, disputes or collection of overseas assets requiring separate grants, nor estates requiring consideration of any trusts under a will.

Probate costs are likely to be higher for more complex estates including:

• Agricultural/business property
• Complex investment structures and valuations
• Estates where numerous lifetime gifts have been made
• Complex IHT calculations
• International assets requiring separate grants
• Estates including a contentious element and where we may be acting as an Independent Administrator
• Intestacies
• Estates of a non-domiciled person
• Cases where HMRC – IHT have made an enquiry
• A bespoke fee estimate for more complex cases will be given once all relevant information is known.

We are not able to estimate costs for IHT enquiries and disputes. These areas will increase costs and lengthen the time that it takes to complete the estate administration but we can update you regularly on costs.

We can offer additional services, such as after death tax planning (e.g. deeds of variation), planning estate disposals for CGT purposes, conveyancing for the estate property, advice on trusts contained within wills including trust management and also wills for the beneficiaries.

What additional probate fees and disbursements will arise?

Disbursements are expenses payable to third parties, like those listed below. Not all may be applicable.

• Probate Registry fee – currently £300 plus £1.50 for each copy of the grant
• Unknown assets search fees – £185 plus VAT at 20%
• Statutory Advertisements – in the region of £250 – these protect the personal representatives against unexpected claims from unknown creditors
• Land Registry fees – minimum of £3 plus VAT at 20%.

Probate questionnaire

If you are interested in finding out more about how we can help or would like an initial quote for our services, please fill in our probate questionnaire.

Let our highly experienced Probate and Will, Trust & Estate Disputes teams help minimise the stress for you at a difficult time. We offer a wide range of options, depending on how much support you need.

As one of the largest teams of probate and contentious probate lawyers in Kent and the South East, we have a vast depth and breadth of experience and combine sensitivity with a practical approach to dealing with even the most complicated of issues. Our award winning team specialises in administering complex, high and ultra-high net worth estates, as well as estates with agricultural and business assets.

If problems arise, our highly regarded Will, Trust & Estate Disputes lawyers help resolve issues as quickly and cost effectively as possible. We can also draw on expertise from our Wills, Estate & Tax Planning, Tax Management and Residential Property & Conveyancing teams as needed.

Our probate experts also have a great deal of experience in working on international estates and the complexities involved here and have a trusted network of overseas lawyers we work with regularly.

We also have specific expertise in dealing with unusual assets and holding structures. In addition, our team can assist with heritage assets and reliefs, conditional exemption and offers in lieu of tax.

We understand what it means to lose someone and that each estate is unique. This is why we offer a bespoke service, delivering support tailored to your individual needs at this difficult time.

• Full estate administration: We will deal with each aspect of the probate process, so you are not burdened with the responsibility
• Executor support service: You choose which parts of the process you want to carry out yourself and which parts you would like to hand over to our probate experts
• Grant-only service: We apply for the Grant of Representation on your behalf, enabling you to do the rest of the work yourself
• Independent Administration: A service for estates where those involved in administering an estate feel that they can go no further with the process and require an Independent Administrator to be appointed to resolve the issue.

Our probate questionnaire can help identify the type of help you may need.