Transparency Of Fees

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THE SOLICITOR’S REGULATION AUTHORITY (SRA) TRANSPARENCY RULES

The SRA Transparency Rules are designed to help consumers make informed decisions when choosing a legal services provider by ensuring that clear information about services and pricing is readily available.

At Lloyd Evans & Hughes, we are committed to providing a professional, personal and approachable service, with transparency at the heart of our dealings with clients. We recognise the importance of providing clear information about our fees and the services we offer, enabling you to understand the likely costs involved and make informed decisions from the outset.

We aim to provide fair, competitive and proportionate pricing, tailored to the nature and complexity of your matter, while maintaining the high standards of service and care our clients expect from us.

This guide sets out information about our probate and estate administration services, including our fees, the basis on which they are calculated, the work involved, likely disbursements and indicative timescales.

WHO WILL DEAL WITH YOUR MATTER?

Your matter will be handled by a suitably qualified and experienced member of our team, selected according to the nature and complexity of the work involved. We have a range of solicitors, legal executives, trainee solicitors and paralegals, enabling us to provide the appropriate level of expertise and support to meet your needs.

Our hourly rates vary according to the experience and seniority of the fee earner undertaking the work, as follows:

• Solicitors and legal executives with 8 or more years' experience:
  £288.00 per hour plus VAT.
• Solicitors and legal executives with 4 or more years' experience:
  £247.00 per hour plus VAT.
• Other solicitors, legal executives and fee earners with equivalent experience:
  £200.00 per hour plus VAT.
• Trainee solicitors, paralegals and other fee earners:
  £142.00 per hour plus VAT.

VAT is charged at the prevailing rate, currently 20%.

The Head of our Private Client Department is Shaun Philip Hughes, Director and Solicitor, who oversees the department's private client work, including probate and estate administration.

We will confirm who is responsible for your matter and the basis on which our fees will be calculated at the outset. Where appropriate, work may be delegated to other members of the team to ensure that your matter is handled efficiently and cost-effectively.

PROBATE AND THE ADMINISTRATION OF ESTATES

What is probate?

Probate is the general term used to describe the legal and administrative process of dealing with the affairs of someone who has died. This may involve obtaining a Grant of Probate or Letters of Administration, identifying and valuing the deceased's assets and liabilities, dealing with any Inheritance Tax and other tax obligations, collecting in assets, paying debts and distributing the estate to the beneficiaries.

Where the deceased left a valid Will, the estate will generally be administered in accordance with its provisions. Where there is no Will, the estate will normally be distributed in accordance with the rules of intestacy.

We understand that dealing with an estate can be difficult, particularly following the loss of a loved one. Our experienced team is available to guide you through the process and provide the level of assistance appropriate to your circumstances.

Our probate services range from obtaining a Grant of Representation only to undertaking the full administration of an estate.

The information and prices set out below relate to uncontested estates comprising UK assets. Estates involving disputes, overseas assets or other unusual complications may require a separate estimate.

OUR CHARGES

1. Full probate and estate administration service

For a standard, uncontested estate comprising UK assets, our time-based legal fees will generally range from £3,500 plus VAT to £6,500 plus VAT, together with disbursements.
This range relates solely to our time-based charges and does not include any value element that may be applicable under a separately agreed fee arrangement.

The range is indicative rather than a fixed fee. The actual cost will depend on the circumstances of the estate, including its value, the nature and number of assets, the tax reporting requirements and the time required to administer it.

Before commencing work, we will consider the circumstances of the estate and provide a written estimate of our likely charges. Where appropriate, we may agree a fixed fee. We will explain the basis of our charges and any factors that could result in additional costs.

What is included?

Subject to the agreed scope of work, our full estate administration service will generally include the following:

• Initial meeting and instructions: Meeting with the personal representatives to obtain instructions, discuss the estate and explain the administration process.
• Review of the Will: Reviewing the Will, where one exists, and identifying the appropriate personal representatives and beneficiaries.
• Information gathering: Identifying the deceased's assets and liabilities and obtaining relevant information from financial institutions, organisations and other parties.
• Valuations: Arranging or obtaining valuations of the deceased's assets where required.
• Inheritance Tax: Preparing the necessary Inheritance Tax forms and advising on the reporting requirements applicable to the estate.
• Grant application: Preparing and submitting the application for the Grant of Representation, together with the required supporting documents.
• Estate protection: Placing appropriate notices and undertaking relevant asset, liability and Will-tracing searches where required.
• Collecting assets: Collecting in the deceased's assets, closing accounts and arranging transfers where appropriate.
• Paying liabilities: Dealing with the deceased's liabilities, administration expenses and outstanding tax obligations within the agreed scope of work.
• Beneficiaries: Identifying and verifying beneficiaries and arranging payment of legacies.
• Estate accounts: Preparing estate accounts for the personal representatives' approval.
• Distribution: Distributing the remaining estate in accordance with the Will or the rules of intestacy.

The precise work undertaken will depend on the circumstances of the estate and the scope of our retainer.

What is not included?

Unless expressly agreed as part of our retainer, the following are excluded from the above service:

• The sale or transfer of land or property forming part of the estate. This may be undertaken by us under a separate agreement and will attract additional fees.
• Preparing and registering a Deed of Renunciation where an executor wishes to step down.
• Dealing with assets situated outside the United Kingdom.
• Contested probate proceedings, disputes between beneficiaries or claims against the estate.
• Specialist tax advice, litigation or other work outside the ordinary administration of an uncontested estate.
• Other work that falls outside the agreed scope of the retainer.
  If additional work becomes necessary, we will explain the position and provide an estimate of the additional costs before proceeding, where appropriate.

2. Grant of Representation-only service

If the personal representatives do not wish to instruct us to administer the entire estate, we offer a separate service limited to obtaining the Grant of Representation only.

Our fees for this service generally range from £750 to £2,500 plus VAT, depending on the complexity of the estate and the relevant Inheritance Tax forms required.

This service involves obtaining the necessary information about the deceased's assets and liabilities from the personal representatives, preparing the appropriate application and Inheritance Tax paperwork, and submitting the application to the Probate Registry and HM Revenue & Customs, where required.

The personal representatives will need to obtain and provide the necessary information and valuations to enable us to prepare the application.

Once the Grant of Representation has been issued, we will provide it to the personal representatives so that they can proceed with the administration of the estate themselves.
This service is limited to obtaining the Grant of Representation. It does not include collecting in assets, closing accounts, paying liabilities, dealing with the ongoing administration of the estate, preparing estate accounts or distributing assets to beneficiaries.

If the personal representatives require any further assistance after the Grant has been issued, we can provide a separate estimate for the additional work.

In addition to our legal fees, the Probate Registry fee is payable where applicable. The current application fee is £526 where the assessed estate value exceeds £5,000. No application fee is payable where the estate is valued at £5,000 or less. Additional copies of the Grant cost £2 each when ordered with the application. Copies requested subsequently cost £16 each. No VAT is payable on these court fees.

HOW ARE OUR FEES CALCULATED?

Our charges for estate administration reflect the work required and the circumstances of the estate. Depending on the matter and the agreed fee arrangements, our charges may comprise a time element, a value element, or both.

Time spent administering the estate

We charge for the time spent dealing with the matter. This includes meetings, telephone calls, correspondence, obtaining information, reviewing documents, preparing forms and estate accounts, and dealing with the personal representatives, beneficiaries and third parties.

Our hourly rates range from £142 to £288, plus VAT at the prevailing rate, depending on the experience and seniority of the fee earner undertaking the work.

Value element

In some cases, we may charge a value element in addition to the time-based element of our fees. Where applicable, this will ordinarily be calculated by reference to the Law Society's guidance, at a rate of 1% of the gross value of the estate, reduced to 0.5% of the value attributable to any property.

The value element reflects the responsibility involved in administering an estate and the need to account for its overall value, alongside the time spent carrying out the work.

The published time-based range of £3,500 to £6,500 plus VAT for a full probate service does not include a value element. Accordingly, where a value element is applicable and agreed, the total legal fees may exceed this range.

We will explain whether a value element applies to your matter, how it will be calculated and its effect on the overall fees before proceeding.

Where a director of our firm is appointed as Executor

Where a director of Lloyd Evans & Hughes is appointed as an Executor of an estate, we may agree with the client to apply an enhanced value element of 1.5% of the gross value of the estate, reduced to 0.75% of the value attributable to any property.

This reflects the additional responsibility, time, expertise and potential liability associated with acting as a professional Executor. The role may involve making significant decisions, managing estate assets and investments, dealing with beneficiaries and third parties, resolving issues or claims, and ensuring that the estate is administered and distributed in accordance with the Will and applicable law.

As professional Executors, we also assume ongoing responsibility for the proper administration of the estate and the discharge of the associated legal and administrative obligations.

The enhanced value element is an alternative to the standard value element described above and is not an additional percentage charged on top of it.

The enhanced value element will not be presumed or applied automatically. It will only apply where it has been discussed and agreed with the client, with the basis of the charges confirmed in writing as part of the agreed fee arrangements.

DISBURSEMENTS AND OTHER EXPENSES

Disbursements are payments made to third parties in connection with the administration of an estate. These are separate from our legal fees and are generally payable from the deceased's estate.

Depending on the circumstances, disbursements and other expenses may include the following.

Probate Registry fees

• Grant application fee: £526 where the assessed estate value exceeds £5,000. No application fee is payable where the estate is valued at £5,000 or less.
• Additional copies of the Grant: £2 per copy when ordered with the application.
• Copies requested subsequently: £16 per copy.

No VAT is payable on these court fees.

 

Other disbursements

• Land Registry fees: Fees for official copies of title registers, copies of title documents, searches and registrations. The amount will depend on the searches or documents required and the nature of the transaction.
• Bankruptcy-only Land Charges searches: Where required in relation to beneficiaries. The cost will be confirmed at the relevant time.
• Will and asset-tracing searches: Searches of relevant registers to help establish whether the deceased left a Will or held assets that need to be identified. The cost will depend on the searches undertaken.
• Property valuations: Where required, fees will depend on the property and the valuer appointed.
• Personal possessions and contents valuations: Where required, fees will depend on the items being valued and the valuer appointed.
• Stocks and shares valuations: Where required, fees will depend on the assets involved and the relevant provider.
• Trustee Act notices: The cost of placing notices in the London Gazette and a local newspaper, where appropriate, to help protect personal representatives against claims by unknown creditors. The cost will depend on the notices required and the provider.
• Tracing agents and genealogists: Where required to identify or locate beneficiaries. Fees will depend on the work involved.
• Accountants, tax advisers and other professionals: Where specialist assistance is necessary, fees will depend on the services required.
• Property clearances: Where required, we may instruct a specialist house clearance company to remove furniture, personal belongings and other items from a property forming part of the estate, to prepare it for sale. The cost will vary depending on the size of the property, the volume and nature of the items to be removed, and the work required. A quotation will be obtained from the clearance company where practicable, and the cost will be payable in addition to our legal fees.
• Accountancy fees: Where required, an accountant may need to be instructed to prepare and submit tax returns on behalf of the deceased and/or the deceased's estate, including any outstanding personal tax returns or estate Income Tax and Capital Gains Tax returns. The cost will depend on the nature and complexity of the tax affairs and the work required and will be payable in addition to our legal fees. Where practicable, a quotation will be obtained from the accountant before the work is undertaken.
• Other reasonable expenses: Such as travelling expenses and other costs incurred in connection with the administration of the estate.
• Identity and Anti-Money Laundering Check - required to verify proof of identification documents and perform the necessary checks.

Where the amount of a disbursement is known, we will explain the cost. Where it varies or cannot be established at the outset, we will provide an indication or obtain a quotation where practicable.

Some disbursements may attract VAT, depending on the service provided. We will explain the applicable VAT treatment where relevant.

Inheritance Tax and any other tax payable by the estate are separate from our legal fees and disbursements. The amount, if any, will depend on the individual circumstances of the estate.

FACTORS AFFECTING THE COST OF ADMINISTERING AN ESTATE

Every estate is different, and the work involved will depend on its particular circumstances.
Factors that may affect the overall cost include:

• The existence and terms of a Will: Whether the deceased left a valid Will and whether it deals with the whole estate. Where there is no Will, or the Will does not dispose of all the assets, additional work may be required to establish who is entitled to benefit.
• The number of beneficiaries: Identifying, tracing and corresponding with beneficiaries can affect the time required to administer the estate.
• The extent and nature of the assets: The value, number and type of assets, including property, investments, business interests and personal possessions, may affect the work involved.
• Tax obligations: Whether Inheritance Tax, Income Tax or Capital Gains Tax needs to be considered or dealt with. Appropriate reliefs and exemptions may be available, but the relevant position must be established.
• International elements: Overseas assets or beneficiaries living abroad may require additional enquiries and specialist assistance.
• Disputes and claims: Disagreements between beneficiaries, disputes concerning the Will or claims against the estate may require additional work and separate legal advice.
• Additional professional advice: Valuations, specialist tax advice, genealogical enquiries or other professional services may be required.

If the estate becomes more complicated than anticipated, we will explain the additional work required and the likely effect on our charges. We will keep you informed of any material change to our estimate.

KEY STAGES AND TIMESCALES

The administration of an estate generally involves the following stages.

Stage 1 - Initial instructions and information gathering

We meet with the personal representatives, review the Will where applicable, identify the relevant parties and establish the information required to administer the estate.

Stage 2 - Valuing the estate and dealing with tax

We obtain or review details of the deceased's assets and liabilities, consider the relevant Inheritance Tax reporting requirements and arrange for the necessary forms to be prepared.

Stage 3 - Applying for the Grant of Representation

We prepare and submit the application to the Probate Registry, together with the required supporting documents and tax information.

Stage 4 - Collecting assets and paying liabilities

Once the Grant has been issued, we deal with the collection or transfer of assets, the payment of liabilities and any outstanding tax obligations falling within the agreed scope of work.

Stage 5 - Estate accounts and distribution

We prepare estate accounts for approval and arrange for the payment of legacies and distribution of the remaining estate to the beneficiaries.

The work required at each stage will depend on the circumstances of the estate, the availability of information and the response times of third parties.

How long will the process take?

Most straightforward estates can be administered within approximately 6 to 12 months. More complex estates, particularly those involving Inheritance Tax, property sales, business interests or difficulties obtaining information, may take 12 to 24 months or longer.

The time required to obtain the Grant of Representation will depend on the Probate Registry's processing times and whether any further information is required. The overall administration will generally take longer because assets must still be collected, liabilities settled and the estate distributed after the Grant has been issued.

These timescales are indicative only. We will provide a more tailored assessment once we have considered the circumstances of the estate and will keep you informed of progress.

FURTHER INFORMATION AND ESTIMATES

The prices and timescales in this guide are intended to provide a general indication of our charges and services. They are not a substitute for a tailored estimate based on the circumstances of an individual estate.

We will be happy to discuss the estate with you, explain the available options and provide a written estimate or quotation before you decide whether to instruct us.

Once our work is complete and the file has been transferred to storage, requests for information or copies of documents from the archived file may be charged at £50 plus VAT per request, depending on the nature and extent of the work required. We will confirm any applicable charge before undertaking the work.

At Lloyd Evans & Hughes, our aim is to provide a clear, professional and supportive service throughout the administration of an estate, with transparent costs and regular communication at every stage.