How much are Probate Fees?

What is Probate?Probate is the term given to the process of obtaining the official approval of a last will and testament. To assist with the administration of a will when someone dies you can use a probate practitioner. Probate fees are the costs charged by a practitioner for the administration of a will.

Who Handles Probate?It is possible to avoid probate fees by obtaining probate yourself. However, bereavement is a difficult and emotionally stressful time, and dealing with the intricacies of administering an estate is not easy when you are feeling the loss of someone close. If handled incorrectly this can also be an expensive process. For most people the practical and secure option is to employ a probate practitioner to handle the affairs.

If a practitioner has been named in the will as the executor they will generally administer the estate and the cost of probate will be included and scaled to their time.

The role of the executor is to gather in all of the assets, pay off any debts, and then obtain a ‘Grant of Probate’ on the estate. Finally the executor will pay out any money from the estate in accordance with the instructions of the will.

What Does Probate Cost?Estimating average probate fees is a complex process. This is due to the variety of parties that might be used to carry out this process. Without fail banks charge higher fees than solicitors, averaging between 4% and 5%. This is not good value for money. Solicitors handling probate are often undercut by will-writers who will offer services for a much lower fee, but may lack the skill to ensure the process is handled correctly. To confuse matters even further, some probate practitioners charge a percentage of an estate’s value, while others charge by the item, or per hour. In some cases you might get charged for both.

As a general rule of thumb solicitor’s probate fees are based on guidance from the Law Society. This sets an initial fee of 0.75% of the value of the property, then an additional 1.5% of the value of other assets. Other charges may be added on top of those figures. As a rough guide a large estate may work out close to 2%. This would be a fee of £10,000 on an estate valued at £500,000. Fees for smaller estates would generally amount to a higher proportion. Average fees for probate tend to be around £5,000. Even for the smallest estates probate fees rarely go below £2,000 - £3,000. Although these figures offer a guide, in order to get the best deal, it is important to shop around and ask for prices.

Depending on the seniority of the person involved in the case solicitors may charge between £100 and £250 per hour for probate work. A simple estate which takes just 10 hours to work out will obviously be much cheaper than a more complex estate requiring 20 hours work.

Are There Any Potential Problems?The most common problem in the administration of a will is when there is a mistake or an omission. This type of will might be contested by family members who are disgruntled, or feel they have a right to a share in the estate.

On some occasions beneficiaries named in a will cannot be traced, or assets cannot be found. When no will is found, the deceased is regarded as being ‘intestate’. In these cases the Government’s rules on intestacy come into operation. This can also increase the costs of administration.

In order to get the best deal on probate fees you should get a fixed quote from your practitioner after your initial meeting. It is always good practice to prepare well for any consultations required as part of this process. To save time during meetings have all of the required information and documentation to hand. Letters take time and cost money so try to ensure that correspondence is only conducted when necessary.

Who Should I Choose?When it comes to probate fees you should try and find a practitioner that is well experienced in the process. They will be able to troubleshoot, predict problem areas and give you the clearest picture of all of the costs involved.

IWC Estate Planning & Management Ltd. are a specialist Will Writing and Probate Company offering nationwide coverage. The company provides fixed fee probate services; rates are agreed with clients in advance. Probate charges are based on the work that has to be carried out, rather than the estate value or at an

hourly rate.

IWC are regulated by the Society of Will Writers and Estate Planning Practitioners and registered at Companies House. Their head office is located in Croydon, Surrey, with satellite office coverage across most of England. Follow us on Twitter @IWCLtd