Estate Administration Fees

When a loved one passes away, you may find yourself nominated to act as their executor. This is a decision that everyone must make when they write their will. It is good practice to ask an executor if they are happy to take on this role before naming them in the will, but this is not always done. This means that you might find yourself dealing with the responsibility of an executor unexpectedly after a loved one dies.

Another option that avoids the need to shoulder this burden yourself is to use a professional executor. Executing a will and administering an estate can be a complicated and time-consuming process, especially because your responsibilities begin during a time of grief following a loved one's passing. A solicitor can fulfil this role for you and take care of all the legal obligations

If you have been chosen as the executor of a loved one's will, but you do not wish to handle the responsibility yourself, you can hire an executor to take care of these duties on your behalf. The team at Percy Hughes & Roberts Solicitors has helped families throughout Merseyside and the wider North West by providing a cost-effective and compassionate executor service. By allowing us to manage the estate administration process on your behalf, you can ensure that all beneficiaries receive their gifts as soon as possible, and have more time to spend with your loved ones in your period of grief.

Keep reading for a breakdown of our fees for managing an estate after someone has passed away. If you need the services of a professional executor, call us today on 0151 666 9090, or use our online enquiry form to request a call back at your convenience.

What are your estate administration fees?

Where the state is uncontested a fee will be charged (plus VAT currently charged at 20%) up to and including obtaining the Grant of Probate (or Letters of Administration). Thereafter an additional fee (plus VAT) will be charged for administering and finalising the estate. This means that if you only need support in securing a Grant of Probate, you will pay a fixed fee plus the Probate application fee.

If you would like to use our services as professional executors, here is how the charges break down. Our work is carried out at an hourly rate. Our current hourly rates are as follows:

Partner/ senior solicitor                        £200 per hour plus VAT

Senior paralegal                                     £175 per hour plus VAT

Paralegal                                                £125 per hour plus VAT

It is not always easy to give an estimate of the exact cost at the outset as no two estates are the same and unforeseen issues may come to light. However, for an estate with two or three bank accounts to deal with and one or two shareholdings, our costs up to obtaining the Grant of Probate are likely to be in the region of £800 - £1500 plus VAT. In addition, there are probate registry fees of £273 plus £1.50 per sealed copy. A fixed fee for this service can be offered.

The costs of administering and finalising the full estate will depend on how many accounts there are to deal with. On an estate as outlined above our costs for administering the estate are likely to be in the region of £2,000 - £5,000 plus VAT.

On presentation of the outline of an estate, we will always offer an estimate of our charges. This will give you a realistic idea of what you should expect from the process, and we will always work as quickly as possible to ensure the real charge is as close as possible to the estimate.

FAQs About Estate Administration

Can you help with Inheritance Tax liability?

When someone dies, it is the responsibility of the executor to calculate the value of the estate. This helps to determine whether or not there is any Inheritance Tax payable on the deceased's assets. IHT is charged at a rate of 40% on any part of an estate that exceeds the IHT threshold, which currently sits at £325,000. The threshold is expected to remain frozen at this rate for at least the next five years. With the average UK house price currently sitting at £289,824 and trending upwards, more estates are likely to exceed this threshold over the next few years.

Once someone has died, there is very little that can be done to minimise their IHT liability. Anything that is currently part of their estate, or that was given as a gift in the seven years before they died, must be included as part of the valuation of the estate. For gifts, the tax rate that applies depends on how long ago the gift was given, but any other assets are subject to the 40% standard rate.

However, there are many options to consider before you pass away that can help to minimise the Inheritance Tax payable on your estate, to make sure your beneficiaries receive as much of the value of the estate as possible.

For example, you may be able to reduce the overall value of your estate by putting your assets into the ownership and management of a trust. There are many types of trusts, with a variety of structures, designed to suit specific needs. If you are concerned about the Inheritance Tax your beneficiaries will need to pay on your estate, there will almost certainly be a type of trust that could help. Trusts can also offer you more control over what happens to the assets in your estate after you die, or help you to provide for a surviving spouse or civil partner while still benefiting from tax savings.

Contact our team today to learn more about trusts and their financial implications, along with some of the other tax-efficient strategies you can use to manage and minimise your IHT liability.