When to use a professional firm for probate and estate administration

The task of obtaining probate and completing estate administration can be lengthy and daunting. It’s a job we rarely have to do and the potential complexity might make the idea of hiring a professional firm appealing.

While there are some situations when you might need an expert (more details below), a relative or friend often takes on the job of executor to get probate themselves.

You will likely save thousands of pounds if you do it yourself – but if you decide you want help, there are different types of professional firm, and who you choose will have a big impact on the size of the bill you pay. 

There are essentially two parts to this process; 

• First, applying for a Grant of Probate – This is a legal document that needs to be applied for which gives the executor authority to sort out the assets of the person who died according to the instructions in their will.
• Completing the process of Estate Administration – Once the executor has the Grant of Probate (and taking on the liability that goes with it) they can begin the process of identifying all of the assets of the person who died and distributing them to the beneficiaries.  

Ask whether the firm you choose offers grant of probate only as well as probate and estate administration.  

Grant of probate only means the firm will complete all the legal formalities of obtaining the grant of probate, leaving you to handle all the estate administration work and save you thousands (by not paying them for the estate administration part).

Probate and Estate administration includes obtaining the grant of probate and estate administration but will cost thousands of pounds.

An appropriate professional firm might be a solicitor, accountant, bank or a probate and estate administration specialist.

You might want to think about using a professional firm if:

• the value of the estate is over the Inheritance Tax threshold and the estate is still earning a regular income where there are complicated taxes due. The threshold for the 2023/24 tax year is £325,000. 
• the deceased died without a will, and it’s a complicated estate to sort out
• there are doubts about the validity of the will
• the deceased had dependants who were deliberately left out of the will, but who might want to make a claim on the estate
• the estate has complex arrangements, such as assets held in a trust
• the estate is bankrupt (also known as insolvent)
• the estate is bankrupt
• the estate includes foreign property or foreign assets
• the deceased lived outside the UK for tax purposes.

Costs can vary significantly largely depending on the type of provider you use. 

Probate and estate administration specialists are likely to be significantly cheaper than solicitors and accountants, who in turn will be significantly cheaper than banks. 

Many firms now offer grant of probate only service as well as estate administration – and this is a very good way of keeping costs down. 

Grant of probate only

Expect to pay from £500 - £2000 depending on the type of firm. 

Grant of probate and estate administration

Some firms charge an hourly rate and some charge a fee that’s a percentage of the value of the estate, but if you shop around you may also find firms that offer a fixed-fee service (likely to be significantly cheaper). 

For a guide to how much you could expect to pay for probate and estate administration, the following will give you an indication  of the range in costs. 

Expect to pay most with a bank, and least with a probate and estate administration specialist firm, with solicitors and accountants in the middle. 

When a fee is calculated as a percentage it is usually between 1% and 5% of the estate's value, plus VAT and plus “disbursements”.

The table below is an example of how much you could end up paying for their service. This total doesn’t include court, application fees or disbursements, so the final bill will probably be higher.

Some probate and estate admistration specialists charge both an hourly rate and a percentage fee. But this doesn’t always mean they’re more expensive.

Disbursements is a name for costs that are outside of the control of the firm you choose and where there would be an extra charge. The following list does not cover every possible item and is just for example purposes:

• Probate court fees 
• Notices to creditors in the London Gazette & local newspaper
• Valuation fees for property, stocks & shares
• Estate agent, Conveyancing fees and Land Registry fees
• Stockbroker/registrar fees if selling or transferring shares and/or investments
• Some, but not all, disbursements may also have VAT on top.

You can get more information on probate specialists’ fees at The Gazette – Official Public Record

Use the links below to find a probate accountant or a solicitor:

• In England and Wales, at the Law Society of England and Wales for Certified Accountants that are ICAWEW probate accreditedOpens in a new window or in the CICLx DirectoryOpens in a new window
  
• In Scotland, at the Law Society of Scotland
• In Northern Ireland,  at the Law Society of Northern Ireland

Here’s a list of things to consider or watch out for when dealing with a probate specialist.

Many probate specialists are reluctant to give you a ‘binding’ estimate of their fees, giving you a ‘ballpark figure’ instead. If they give a ballpark figure, expect this to increase as the work progresses.

Some firms will ask you for more detailed information at the start about what you’ll need them to do, before they accept the work. This allows them to get a more accurate picture of the work involved and quote a fee accordingly. As a result, the final bill is less likely to differ too much from their quote.

There are some fees (known as disbursement costs) that you’ll have to pay as part of getting probate.

For example, the probate application fee or getting certified copies of certain documents.

With some estates, it’s sometimes necessary to sell off assets, such as property, when sorting out the estate.

This means there’ll be extra valuation and conveyancing fees on top of the quote you get.

Remember to ask how much the disbursement fees are, and also for a clear rate for these extra services.

As the work progresses, many probate specialists expect payment at certain stages.

Some of these payments are for their services up to that stage, while others are for disbursement fees.

Before you agree to hire them, make sure that they clearly explain when payment is due and for how much.

You’ll also need to factor in VAT, if it isn’t included in the quote. The 20% VAT charge might increase the bill by quite a bit.

If the person who died used a bank to draw up their will and appointed them as a co-executor, they might suggest they act as a professional executor and carry out probate.

Some banks have tried to insist on this. Howver, this practice is not limited to banks and many other firms do it.

With this arrangement, the bank tends to charge a percentage of the value of the estate for their services.

In some estates, this could mean tens of thousands of pounds in service fees.

You could ask the bank to step down as executor (renouncing executorship), with the agreement of all beneficiaries.

But if the bank refuses to renounce its role, you might have to apply to the court to remove them.