Wills and Probate Solicitors Winchester

Example cases

A simple estate

An example of a simple, straightforward estate would be where a person died leaving no house and no stocks and shares and with perhaps only two or three bank or building society accounts. If the value of the estate is less than £10,000 you might be able to release it with going through a formal process for a document of authority called a Grant of Probate. Otherwise, Probate will be required but the amount of work involved should be relatively limited. It is likely in a straightforward estate that there would be no Inheritance Tax payable.

As a guide, the administration and winding up of a straightforward estate usually involves between 5 and 10 hours’ work.

Our total costs for a typical case of this type carried out by a Senior Legal Executive is between £1475 + VAT of £295 = £1770 and £2950 + VAT of £590 = £3540

A standard estate

A standard estate would include an estate which would not be liable to Inheritance Tax but for which Probate is required, or an estate for which Inheritance Tax is payable but for which the calculations are relatively straightforward. It would include perhaps half a dozen bank and building society accounts, some National Savings investments and maybe a small portfolio of stocks and shares. It would also include a house.

We would deal with obtaining valuations of all the assets to enable us to draft the Probate papers. We would then take the Executors through the Probate papers in order that they fully understand them before they sign them. We have arranged to settle the Inheritance Tax from the Deceased’s funds. Once Probate has been granted, we will send it to all the asset holders and collect in the assets. We will assist with the sale of the house (for which a separate charge for conveyancing fees is payable). We would finalise the Deceased’s Income Tax affairs up to date of death and deal with the Income Tax and Capital Gains Tax positions of the estate during the administration period in liaison with the Deceased’s Accountant.

As a guide, the administration and winding up of a standard estate usually involves between 10 and 30 hours’ work.

Our total costs for a typical case of this type carried out by a Senior Legal Executive is between £2950 + VAT of £590 = £3540 and £8850 + VAT of £1770 = £10,620. There may be other costs accrued in the course of your matter, these are set out below in our Additional Payments table.

A complicated estate

An example of a complex estate would be an estate where there is a large portfolio of stocks and shares. If there is one valuable property or a number of properties, Inheritance Tax is payable. Perhaps the Deceased’s affairs are not in good order and we have to spend time going through paperwork in order to establish the assets. Perhaps there is a dispute within the family and we have to liaise more often than would be expected between beneficiaries and mediate disputes. Perhaps there are a large number of beneficiaries.

As a guide, the administration and winding up of a complex estate usually involves between 30 and 60 hours’ work. Our charges will be settled from estate funds.

Our total costs for a typical case of this type carried out by a Senior Legal Executive is between £8850 + VAT of £1770 = £10,620 and £17,700 + VAT of £540 = £21,240. There may be other costs accrued in the course of your matter, these are set out below in our Additional Payments table.

Steps in the case

• You ask us to help you distribute the deceased’s property
• We retrieve the Will from our store or from whoever is holding it
• We make enquiries to ensure we have the latest Will
• If there is no Will, a Grant of Letters of Administration would be applied for instead and we would distribute the assets in the order set out by the law.
• We contact other Executors (if there is a Will) and beneficiaries
• We arrange the funeral if there are no relatives
• We make an inventory of all the deceased’s assets (such as a house, shares, personal effects, furniture) and obtain valuations
• We may need to place a notice in newspapers about the death
• We apply for the Grant of Probate or Letters of Administration
• Any money due to HMRC is calculated
• Once we have the Grant of Probate or Letter of Administration we arrange the sale of the assets
• Once this is completed we can pay any tax due and distribute the money to the beneficiaries. Interim payments are sometimes possible.

Timescales

Administering a standard estate takes, on average, 12 months from the time you ask us to act for you. It can take longer for example, if there are a large number of assets to be valued and disposed of, we need to trace beneficiaries, or there are taxation queries.

We do not advise on

• Complex SDLT calculations / liability

Additional Payments / Costs

There may be payments which we make to others as follows:

Factors that Increase your Costs

• If you delay in responding to our requests we are obliged to chase you. If this is necessary on more than one occasion this may also result in an increase in our estimate
• If you make changes to your instructions this could result in additional charges or if you fail to cooperate to enable the estate to be administered our costs are likely to increase. As our charges will be paid from the estate, this will result in lower funds being available for the beneficiaries
• If there is no Will; this is called an intestacy and usually involves more work as the Deceased’s affairs tend to be less organised.
• Executor’s disagreements, beneficiaries’ disagreements, being unable to locate Executors or beneficiaries.
• Sale of the house at more than the Probate value resulting in Capital Gains Tax being payable.
• Sale of assets at more than the Probate value, or finding assets later in the probate process, which result in the need to file a Corrective Account for Inheritance Tax purposes.
• We try and give a realistic timescale of how long an estate will take to administer. We update the Executors monthly. If the Executors want to be updated more often than monthly this will increase our charges. In addition to monthly updates there will be contact between us and the Executors requesting and giving information when necessary. If however the Executors send numerous emails with which they wish us to deal, this will increase our charges.
• Charities as beneficiaries can involve more work, particularly if there is a large number of them. Sometimes it is tax beneficial for the charities to have assets appropriated to them before sale. We will need to liaise with the charities regarding this. Where there are a large number of charities we ask them to nominate a lead charity who we correspond with and who then disseminates to the other charities. Whilst having charitable beneficiaries can result in increased administration costs, they do benefit from charitable status from Inheritance Tax and the estate may therefore pay less Inheritance Tax, still resulting in a substantial saving.
• Large numbers of assets, for example, lots of different bank and building society accounts with lots of different banks and building societies. Lots of certificated stocks and shares managed personally by the Deceased, involving arranging lots of different sales or stock transfer forms to transfer them to beneficiaries.

Types of Lasting Power of Attorney (LPA)

There are two forms of LPA: one covers finances and property and one covers health and care. We can advise you whether or not you need both. You can also register the LPA with the Office of the Public Guardian (OPG). The OPG protects those who do not have the mental capacity to make decisions for themselves. You can register the LPA at any time.

Our fees

Our standard charge for one straightforward LPA is £600 + VAT (£120) = £720

With registration (see below) the total cost is £802

Our standard charge for two straightforward LPAs is £850 + VAT (£170) = £1020

With registration (see below) the total cost is £1184

Our standard charge for four straightforward LPAs is £1200 + VAT (£240) = £1440

With registration (see below) the total cost is £1768

These estimates are not intended to be fixed. If the scope of the work changes or the assumptions upon which the fee estimate is based change, the estimate will no longer apply and we will give you a revised estimate. The full basis for our charges is set out below.

Additional Payments / Costs

If you decide to register an LPA with the OPG there is a court fee payable of up to £82.00 for each LPA.

Timescales

If you need a Power of Attorney urgently, then we will do all we can to see you, prepare it and arrange for you to sign it as soon as possible.

In normal circumstances, from the time we see you to discuss your requirements for the Power of Attorney to the time we meet to sign the Power of Attorney, it is usually 1 to 2 months. Please be aware however that the OPG is currently taking 6 months to deal with Registration.

Factors that Increase your Costs

• If there are delays in responding to our requests we are obliged to chase. If this is necessary on multiple occasions this may also result in an increase in our estimate.

Example cases

A simple Will

For our standard charge we arrange to meet with you in person at our offices to take your instructions. At that meeting, we gather as much as possible of the information that we need in order to prepare draft Wills for you. We then draft Wills which we send to you for your consideration. You are then able to add any further information or make any amendments before we prepare final versions for you to sign. We then arrange for you to come into the office to sign the final versions and we supervise execution to ensure the Wills are signed correctly.

Here is a more detailed breakdown of how these costs are made up:

Our standard charge for a single straightforward Will is £600 + VAT (£120) = £720

Our standard charge for a pair of straightforward mirror Wills is £850 + VAT (£170) = £1020

These estimates are not intended to be fixed. If the scope of the work changes or the assumptions upon which the fee estimate is based change, the estimate will no longer apply and we will give you a revised estimate.

A complex Will

Examples of when we might need to increase our charges from our standard charge would be:-

• Where you wish to include a Trust in your Will
• When you have a medical condition which might affect your capacity to sign the Will. In this situation we might need to obtain a medical report from your GP or Consultant
• Where there is a dispute within the family and you wish to leave out of your Will someone who might be expecting to inherit
• When, once you receive the initial draft of your Will, you have a change of instructions or wish to add substantially to the draft

Steps in the case

• We will meet with you to understand your wishes and to advise you on matters to consider when making your Will
• We then draft the Will and send it to you to consider and make any amendments
• The Will is then finalised (“engrossed”)
• We ask you to make an appointment to come in and sign it
• You sign the Will in front of witnesses (usually staff at Shentons)
• We store the Will for you (if you wish) and provide you with copies

We do not advise on

• Complex trusts
• Complex tax implications / liabilities (but we can liaise with your Accountants to assist you)

Timescales

If you need a Will urgently, then we will do all we can to see you, prepare the Will and arrange for you to sign it as soon as possible.

In normal circumstances, from the time we see you to discuss your requirements for the Will to the time we meet to sign the will, it is usually around 1 to 2 months.

Factors that Increase your Costs

• If there are delays in responding to our requests we are obliged to chase. If this is necessary on multiple occasions this may also result in an increase in our estimate.
• If you make changes to your instructions this could result in additional charges or if you fail to cooperate to enable your matter to be completed our costs are likely to increase.

The firm’s charges are calculated mainly by reference to the amount of time that is spent on a matter. The Firm’s rates are reviewed annually and we shall inform you promptly of any change. Ordinary letters out and telephone calls are charged at six minute units where the time spent does not exceed this.

The hourly rates and unit charges for members of the Probate Department are:

VAT: please note that all the above will be charged to you with the addition of VAT at the current rate (to meet HMRC re-charge requirements)

Where a matter is dealt with by a legal secretary or non-fee earner to progress it a charge of £100.00 per hour will be made.

These rates reflect the many overheads which, of necessity, a firm of solicitors must incur to run its business.

Fixed Fees

For some new matters, we offer a fixed fee of £200 +VAT for up to 1 hour of general legal advice. If you would like to find out more, please contact us and we will provide more detailed information.

Our charges for acting as your Executors and administering the estate when you die will be calculated primarily by the amount of work involved based upon the hourly rate at the time of the person dealing with the matter. As a guide, the administration and winding up of a straightforward estate usually involved between 5 and 10 hours’ work and the administration of a standard estate usually involves between 10 and 30 hours’ work. The winding up of a complex estate involves between 30 and 60 hours’ work.

In addition, our charges contain an element based on the gross value of the estate. This is because the value reflects the importance of the matter and consequently, the responsibility of Shentons. We charge 0.75% of the gross value of the property and 1.5% of the gross value of everything else. However, in light of the high value of property prices in this area it is the Firm’s policy to charge only 0.75% of half the value of the property.

If you appoint others as Executors who then instruct us to administer the estate we do not charge a value element. We suggest you only appoint partners in Shentons as Executors where (a) there is no-one else willing or appropriate to act; or (b) the administration of the estate is likely to be complex; or (c) there is likely to be a dispute following your death.

WIQS and STEP

The Firm is a member of the Law Society’s Will and Inheritance Quality Scheme (WIQS) and complies with the Society of Trusts and Estate Practitioner’s (STEP) Code for will preparation. The purpose is to ensure that you receive the highest standard of advice and client care.

• We will not pressure you into buying more complex advice that is not in your best interests
• Our dedicated Wills and Probate service is tailored to your needs. We will explain the process, options, costs and likely timescales
• We will keep you up to date using your preferred method of communication
• Accredited solicitors and other staff complete mandatory training on the WIQS standard and show compliance through annual re-accreditation and ongoing enforcement checks by the Law Society of England and Wales

You can view a copy of the WIQS Client Care Charter online at http://www.lawsociety.org.uk/accreditation/specialist-schemes/wills-inheritance-quality/wiqs-client-charter.

You can view a copy of the STEP Code for Will Preparation at www.step.org/will-writing. Alternatively, if you would like printed copies, please let us know.