Estate Administration

Russells advised on all aspects of probate and estate administration. This generally commences with obtaining a grant of probate where someone leaves a will or letters of administration where they do not. Each may be referred to as a grant of representation. Thereafter, the executors or administrators (“personal representatives”) can collect in the estate assets and settle any liabilities before dealing with the terms of the deceased’s will or following the laws of intestacy where there is no Will.

Services

Our initial services leading to a grant of representation may involve the following steps:

A. Advising on the terms of the will and the duties of the executors or, if there is no will, providing advice as to the devolution of the deceased’s estate and the duties and responsibilities of the administrators.

B. Arranging the valuation of the estate assets and liabilities.

C. Preparing Inheritance Tax Forms including, IHT 205 or IHT 400 and schedules for submission to HMRC and obtaining the personal representatives’ signatures thereto

D. Calculating inheritance tax where payable and arranging funds for its payment to HMRC.

E. After obtaining the unique Probate code from HMRC, Drafting the statement of truth required to be submitted to the probate registry and obtaining the signatures of the personal representatives to it.

F. Submitting the unique probate code and statement of truth together with the deceased’s will (where applicable) to the probate registry to lead to a grant of representation.

Following the issue of the grant of representation, the personal representatives may call upon Russells to assist in the collection of assets, payment of debts and ultimately, the division of the estate between the beneficiaries entitled to it.

1. Submitting the grant of representation to the deceased’s asset holdings for closure.
2. The closure of bank accounts and the liquidation of other assets in the estate.
3. Management of estate funds in client account arranging settlement of estate liabilities.
4. Liaising with HMRC regarding payment of any remaining balance of inheritance tax, including negotiation on valuations and ultimately obtaining tax clearance for the benefit of the personal representatives
5. Placing London Gazette and Local newspaper advertising for creditors to protect the personal representatives against unexpected claims from unknown creditors or beneficiaries
6. Arranging payment of pecuniary legacies to beneficiaries and interim distributions to residuary beneficiaries where appropriate.
7. Providing information to accountants for completion and submission of any estate tax returns.
8. Preparing estate accounts for the personal representatives' and beneficiaries' benefit and finalising the estate's administration.

Charges

Our charges are based on the time spent in dealing with the matter. Some firms charge a further sum depending on the value of the estate. We feel that is not appropriate for our clients, and therefore, we charge on an hourly basis (exclusive of VAT, which is charged at 20%) as follows:

• Peter Smith, Consultant - £440

Where there is a valid will dealing with only UK property comprising a home no more than several bank accounts or investments upon which no inheritance tax is payable, we would estimate our charges in the vicinity of £3,000 – £5,000 plus VAT for the work to be undertaken up to the issue of the grant of representation for those matters set out in A to F above. If we are to complete the Administration following the issue of the grant of representation, undertaking those matters set out in points 1-8 above, our charges will be based on time spent by the Partners and other staff members in bringing the administration to a satisfactory conclusion.

Disbursements

In addition to this firm’s charges, the following disbursements, which are payable to third parties, would generally be incurred:

• Probate Court Fee £300; Sealed copies thereof £1.50 each
• Bankruptcy search in respect of beneficiaries £2 per search
• Notice in the London Gazette and a local newspaper to protect against unexpected claims from unknown creditors or beneficiaries in the region of £300 plus VAT.

VAT does not apply to be above disbursements unless stated otherwise.

Timescale Complexity of the Deceased Estate

The timescale for obtaining a grant of probate as set out in A to F is likely to be 6 months. Completing the stages in 1 to 8 can be upward of a further 6 months and with cross jurisdictional complex estates this can be upward of a further 12 months.

For further help please call 020 7439 8692 or email media@russells.co.uk.