Sowerby is registered as a licensed probate firm, meaning we are able to perform the reserved legal activity of non-contentious probate in England and Wales.
It also means that when the time comes, we can undertake all aspects of the probate process. Throughout your time as a client we will have already obtained most of the financial information required, which means we will be well placed to deliver a cost effective service and maximise any amounts due to be paid to beneficiaries.
WHEN SOMEBODY DIES – PROBATE AND ESTATE ADMINISTRATION: SOME BASIC FACTS
When somebody dies, as well as the grief and anxiety that you will feel at the passing of a loved one, there is also the matter of the deceased person’s estate to think about, and this can cause additional worry and stress.
Dealing with a deceased’s estate is a serious matter and it is easy to find the process confusing and to make mistakes.
Indeed, those undertaking this task are potentially personally liable, and therefore it is a good idea to take professional advice.
Personal Representatives (PRs)
It is the responsibility of the PRs to deal with the administration of the deceased’s estate. The PRs are known as ‘executors’ if they have been appointed by a Will; otherwise, they are called ‘administrators’ of the estate, and the law determines who these should be.
What the PRs Must Do
In a nutshell, the PRs must:
– Submit any required returns to HM Revenue & Customs;
– Pay any Inheritance Tax that is due to HM Revenue & Customs;
– Obtain a Grant of Representation (for instance a Grant of Probate), if required;
– Gather in the assets, and pay liabilities, of the estate;
– Distribute the net estate to the beneficiaries in accordance with the Will (or, if no Will, according to the intestacy rules);
– Prepare estate accounts, if these are required.
In practice, each of these areas of responsibility can be quite complex, and there may be other responsibilities too, for instance practical arrangements such as notifying relevant parties, redirecting post, securing property, or dealing with insurance issues.
The task must be carried out with a high degree of care and caution, as there are various ways in which mistakes can be made, which may result in the PRs becoming personally liable.
Common pitfalls include:
– Incorrect completion of forms submitted to HM Revenue & Customs;
– Failing to recognise creditors of the estate;
– Incorrect distribution of the estate, for instance due to non-payment of creditors, or misinterpretation of the Will (or of the intestacy rules, in the absence of a Will).
How Can We Help?
We strongly advise PRs to take professional advice, in order to help them through the process, and to protect them from falling into the pitfalls and potentially becoming personally liable for any mistakes; and we can provide that advice.
If you do choose to use our services, we will tailor that service to your specific needs and wishes. A minimal level of advice might simply be to review documents such as the Will, your completion of forms, etc, while on the other hand you may wish us to carry out all or most of the work for you, on your behalf.
This would include securing and recording assets, completing Inheritance Tax (IHT) forms, arranging for settlement of any resulting IHT liability, collating liabilities, obtaining the Grant of Probate or A Letter of Administration, realising assets, settling liabilities, distributing assets in accordance with the Will and preparing Estate Accounts which record all of the above.
How to Proceed
We would offer a first meeting at no cost, at which your exact needs and circumstances can be discussed; you are not committed to using our services at this stage. After that first meeting, should you choose to engage our services, these would be subject to our standard engagement letter, which we would ask you to sign before our work can begin.
Due to the nature of the work, and dependent on the complexity of the estate and the requirements of the will, it may take up to two years to complete (and in more complicated circumstances longer than two years). In all cases, you will be informed of what is happening and we will ensure that you are regularly updated on progress, whether by letter, email or telephone.
The key stages of providing full probate support include:
– Checking the validity of the Will, or apply the Rules of Intestacy if there is no Will
– Completing your probate application form
– Preparing the statement of truth for the executors and/or administrators to sign
– Completing the inheritance tax forms (whether tax is due or not)
– Calculating any inheritance tax liability
– Applying for a grant of probate or letters of administration
Our Fees
In the most straightforward cases we may be able to agree a fixed fee, but for more complex matters we would give you a free quotation. We usually charge our work on the basis of time taken at set hourly rates of charge, which will be clearly shown in our engagement letter. We may be able to provide you with an estimated fee at the initial meeting, though this will depend largely on the expected nature and complexity of the work.
This would be based upon the hourly charge-out rates of the partners and staff expected to handle the matter, with the mix being dependent upon the skill levels required. We find that typically a blended charge-out rate of £150 per hour would apply. To give you an idea the cost for a simple estate valued at around £500,000 whereby the deceased leaves the entire estate comprising their share of the family home and savings accounts to their surviving spouse may cost between £1,400 and £1,800. On the other hand, an estate of £1.5m comprising business interests, commercial property, quoted investments, trust property and cash which is left to a variety of beneficiaries may cost between £5,500 and £7,500.
The fees do not, however, include disbursements which will be incurred as part of the probate process. As a minimum this will be the probate application fee (currently £155) and the cost of copies of the Grant of Probate (currently £1.50 per copy). Additional disbursements that may be incurred could include newspaper notices or tracing fees.
Probate work
Our Head of Legal Practice, Elizabeth Blanchard, is responsible for overseeing Sowerby’s probate work. Elizabeth holds a certificate in Probate and Estates Administration and has much experience dealing with probate matters.
If you would like to talk to us about how we could improve our service to you, or if you are unhappy with the service you are receiving, please let us know by contacting our firm’s Head of Legal Practice, which is currently Elizabeth Blanchard.
We will carefully consider any complaint received about our probate or estate administration work as soon as we receive it, and will do all we can to resolve it. We will acknowledge your letter within five business days of its receipt, and will endeavour to deal with the matters raised within eight weeks. If we do not deal with your complaint in this time, or if you are not satisfied with our response, you are entitled to take up the matter with the Legal Ombudsman. As an ICAEW member firm, accredited for probate work, we also carry mandatory professional indemnity insurance and you may also be able to claim against the ICAEW’s Probate Compensation Scheme.
This short summary is given for guidance only.
We cannot accept any responsibility for actions taken by you based on this summary alone.