Full Administration of the Estate

(Taxable Estate)

3 - Full administration of the Estate (taxable estate)


We can assist with the full administration of the estate where tax is payable.


What does the service include?


We are able to deal with the full process on the Executors/Administrators behalf including liaising with HMRC regarding the payment of Inheritance Tax.


How much does the service cost?


The exact cost will depend on the individual circumstances of the matter, for example estates involving one beneficiary and no property are likely to be at the lower end of the range. Those involving multiple beneficiaries multiple financial assets and properties are likely to be at the higher end of the range.


Costs


Our costs are based on the time we spend dealing with your matter and will be charged on an hourly rate. Estimated costs from £7,200 – £12,000 inclusive of VAT (currently set at 20%). Our costs could also be based on a percentage of the value of the estate. In addition, there will be disbursements payable as set out below:


Disbursements


Disbursements are costs related to your matter payable to third parties. These are likely to include but are not limited to:



  • Probate Court Fee: £273 (no VAT)
  • Sealed copy fee: £1.50 each (no VAT)
  • Swear fee: (Per Executor/Administrator) £5.00/£7.00) if applicable (no VAT)
  • UK Bankruptcy search: (Executor, deceased and beneficiary) £2.00 each (no VAT)
  • Statutory Advertisements: £250 – £270 (plus VAT at 20%)
  • Landmark Search: £155 (plus VAT at 20%)
  • Estate agents valuation of property: £60 – £100 each (plus VAT at 20%)
  • Accountants fees:(If income tax/capital gains tax issue) TBC depending on complexity of estate (plus VAT at 20%)
  • RICS Property valuation: (each property) £300-£500 (plus VAT at 20%)


Services not included in costs quoted above


Please note that any conveyancing fees in relation to property that falls within the estate is dealt with separately. The fees are dependent upon whether the Property is registered or unregistered, freehold or leasehold property. Please refer to our cost estimate page for conveyancing matters


Please note: The above quote is for estates where there is:


  • A valid will (or intestacy where all beneficiaries are identified and no genealogists involvement)
  • There is no more than three properties
  • The estate is not contested and all assets are based in the UK
  • There is Inheritance tax to pay and a requirement to submit a full account to HMRC
  • There are no disputes between beneficiaries regarding the division of assets. If disputes arise this is likely to lead to an increase in costs.
  • All assets are located in the UK



Key stages and timescales


We would anticipate that the process would take between 12-18 months.


Stage 1 – 1-2 weeks



  • Conflict of interest check
  • Initial meeting with Executors/Administrators
  • Anti-Money Laundering Identity checks
  • Details provided of all known assets and liabilities taken for lawyer to contact for date of death valuations
  • Contact all asset and liability holders and relevant bodies to include HMRC/DWP and await responses
  • Arrange RICS Professional Valuation of the property (properties)
  • Place relevant advertisements to establish unclaimed assets (Landmark Search)


Stage 2 – 4 – 6 weeks


  • Subject to adequate replies above, prepare IHT 400 (Full Inheritance Tax account to HMRC)
  • Prepare schedule of assets and liabilities to provide to Executors/Administrators.


Stage 3 – 4 – 6 weeks


  • Tax documentation sent to HMRC.
  • Liaise with financial institutions (Or Executors/Administrators as applicable) to arrange payment of first instalment of Inheritance Tax.


Stage 4 – 8 – 12 weeks


  • Once HMRC have issued IHT421 receipt or sent to Probate registry, Probate documentation to be approved, appointment scheduled to attend Solicitors and swear necessary paperwork, if applicable.


Stage 5 – 12 – 16 weeks


  • Once Grant received, lawyer sends to all relevant institutions to collect in assets of the estate ( or deal with transfer if applicable)
  • Six month period for claims to be made under The Inheritance Provision for Family and Dependents Act 1975 begins from date Grant issued ( IPFDA Claims). Those persons who feel they have a claim against the estate may lodge a claim.
  • Property placed on open market ( if applicable)
  • Statutory Advertisements to Creditors placed – 2 month waiting period to expire.
  • Beneficiaries to the Estate under the Will/Intestacy contacted and identification/certificates requested


Stage 6 – 16-18 weeks


  • Once sufficient assets in the estate are realised, Lawyers first interim bill raised and proceeds paid (usually) from estate
  • Draft Estate accounts prepared for approval of Executors/ Administrators
  • Liabilities to the estate paid ( including next instalments of IHT if applicable)

Stage 6 – 18-20 weeks (dependent upon assets and queries raised by HMRC)


  • Income tax position of the estate finalised (liaising with HMRC/Accountant as applicable)
  • Ensure the 6 month IPFDA Claim period passed and no notifications, Provided property sold ( or transferred as applicable) and all liabilities and utility bills paid – Lawyer produces the final Estate Accounts for Executors/Administrators approval.
  • Final Lawyers invoice produced


Stage 7 – 20- 24 weeks (dependent upon third parties claims)



  • Once Estate Accounts approved and sufficient documentation from all beneficiaries, distribution made in accordance with terms of the Will or intestacy rules.


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