Probate & Professional Executorship

Probate explained

Probate is the legal and financial process of dealing with the property, money, and possessions of a person who has died. It is usually needed when the deceased person owned property or significant assets in their sole name. Suppose a bank or other financial institution has asked for a grant of probate or a grant of letters of administration (also called a grant of representation). In that case, probate is likely to be needed. It is, of course, a challenging time emotionally for the family and friends involved. It is the executor's role to administer the estate, including the probate process.

Probate Services

Fern Wills & LPAS specialises in estate planning services. We do not directly offer probate services. After enquiries from our clients asking for help, we have sourced trusted partners for probate services. To be a partner, they must share the same principles and values. They will always have at least a decade's experience and be a full member of either The Society of Will Writers (SWW) or be registered with the Law Society. They will assign a personal probate case manager with specialist experience, services, contacts and insurance to cover the probate process. 

We have negotiated preferential rates and service standards to better serve our clients. In line with our transparency policy, all fees and costs will be detailed in the written probate quote provided before work commencing.

Responsibility for handling the estate

When someone passes away, a personal representative or executor is responsible for managing their estate. If there's a will, executors can apply for probate. If there's no will, the personal representative administers the estate. Executors can give up their rights or hire a probate specialist. It's essential to understand responsibilities to avoid legal consequences.

Probate Vs Wills & LPA's

Probate is required depending on the deceased person's financial situation, not on whether they left a Will or had LPAS. LPAS give authority to act on a person's behalf while they are alive. The Will directs executors on how to distribute the estate. Probate is part of the process of dealing with the legal and financial affairs of the deceased's estate. It's important to note that having power of attorney during someone's lifetime doesn't affect whether probate is necessary after their death.

DIY 

Pros:

• Cost Savings: Avoid solicitor fees.
• Control: You manage the process yourself, making decisions without external influence.
• Familiarity: For very simple estates, you may understand the deceased’s financial affairs
• Flexibility: You can work at a slower pace rather than a solicitor’s schedule.

Cons:

• Complexity: Probate can be legally and administratively challenging, especially for larger estates.
• Time-Consuming: Gathering documents, valuing assets, and dealing with HMRC can take months and be a very stressful and frustrating process. Amateurs often confuse what is fair with what is legal.
• Risk of Errors: Mistakes in paperwork or tax calculations can lead to delays or severe financial penalties.
• Emotional Burden: Managing probate while grieving can be overwhelming.
• Disputes: Wills and inheritance are prone to disputes without the extra element of probate.

Hiring a Fern Wills Recommended Solicitor

Pros:

• Expertise: Solicitors understand probate law and can navigate complex estates efficiently.
• Reduced Stress: They handle paperwork, tax filings, and legal matters, easing your burden.
• Avoiding Mistakes: Professional guidance minimises errors that could cause delays or financial issues.
• Support in Disputes: If disagreements arise among beneficiaries, a solicitor can mediate and provide legal clarity.
• Solicitors: Contact accountants, conveyancers, estate agents, etc., saving hours of time searching.

Cons:

• Cost: Solicitor fees can be higher than DIY, sometimes ranging from thousands to tens of thousands of pounds.
• Perception: Solicitors can make the process look easy, due to decades of training and experience, leaving you questioning whether you should have done it yourself.

The value of professional assistance

The cost of probate varies depending on the estate's value and whether professional services are used. 

In terms of costs, it is virtually impossible to say exactly what the costs would be for administering an estate as professional executors. It depends on the assets in the estate at the time of death and the amount of work required to collect them, based on the hourly rates prevailing at the time. , unless any significant complications arise that require additional work. Whilst we don’t charge any percentage element on probate matters, as a very general guideline, time-based costs tend to amount to between 1-2% plus VAT of the overall value of the estate, as a guide. There are exceptions, of course – particularly at either end of the scale, where relatively modest value estates consume a lot of time, or very high value estates that are administered very quickly; however, it is a good guide for initial estimates. 

Here’s a breakdown:

• Fixed Probate Application Fee: £273 if the estate is valued over £5,000. Estates worth £5,000 or less are exempt from this fee.
• Solicitor Fees: These are best charged at an hourly rate, rather than a percentage. As an approximate guide (info only), they can range from 1% to 2% plus VAT of the estate's value, depending on the estate's complexity.
• Additional Costs: Fees for valuing assets, accountant fees (if tax returns are required), and court fees (if the will is contested) may also apply.

If you’re handling probate yourself, the costs are significantly lower in monetary terms, but it requires time, effort and financial risks of mistakes or omissions. There are many costs associated with DIY probate, including genealogical research, public notices, professional tracing services, and indemnity insurance.

Pricing Caution

The Society of Will Writers (SWW), the Solicitors Regulation Authority (SRA), and the Competition and Markets Authority (CMA) strongly discourage fixed-price probate/executorship with discounted rates for upfront fees, and we strictly adhere to their guidance.

You may not need probate.

Probate is required based on the size and value of the estate's assets. If the estate is small, has no property, and has a bank balance of less than £5,000, probate may not be necessary. However, banks have their own rules, so it's best to check if a grant of representation is needed. If not, a Statutory Declaration may still be required. 

Joint assets, such as a bank account or property, held with a co-owner will pass to the surviving owner through the right of survivorship. A death certificate is required to transfer the asset.

Assets & Houses

A solely owned house or property owned by tenants in common needs probate to sell or transfer a deceased co-owner's share to their beneficiaries.

Planning for Probate

Our clients frequently share with us their experiences of how their parents made the executor's job less complicated by organising old paperwork, categorising items stored in the attic, giving away low-value items and clothes to charity, and preparing lists of accounts and individuals to contact. They say that many elderly or seriously ill family members have been more practical than them when dealing with such situations. Of course, this is only part of the process, and the legal and financial elements are more complex and time-consuming.

Of course, only so much can be done in advance, as probate cannot begin until after death. However, if authorised, with a registered Lasting Power of Attorney (LPA), you can manage someone's legal and financial affairs before their passing. This can help simplify the probate process in the future. Executors or next of kin have no authority over the estate until after death.

We do not offer any pre-paid probate plans or products, nor do we promote or endorse those of any other firm.

Case Study 1: Mr Jones has two adult Children in their 30s. They are academic and more than capable of learning enough about probate to administer their father's estate when the time comes. One of the children lives abroad, and the other has a highly demanding job. Therefore, there would be challenges coordinating their efforts and spending the time necessary to organise probate. Their father's estate was valued at £700k, and there were some complexities due to Inheritance Tax obligations. The father did not want to burden his children with the probate process. Fern Wills wrote his Will and appointed trusted professional executors. There were no upfront costs, and this could be amended at any time as long as Mr. Jones had the mental capacity to do so.

Case Study 2: Mr Green has three adult Children in their 40s. He had discussed his will estate plans with his family. His daughter was financially very comfortable and indicated that she would want to hold the property for a few years, to enable a renovation, extension and then sell for the maximum potential price. His son was less comfortable financially and needed a relatively quick sale and could not afford to invest in the property for a later return, nor did he want his sister to invest all the money and affect the final distribution percentage or be overall in control. The youngest daughter did not have money to invest, but could forgo any inheritance money to reinvest in the property. Either way, one or all of the children would be disappointed. The last thing Mr. Green wanted was a family dispute.

Mr Green asked Fern Wills to write the Will with a very clear distribution to beneficiaries. He requested a no-contest clause, ensuring that if any beneficiary took the case to court to contest the will and lost, they would forfeit all claims to the estate. Fern Wills arranged a family conference call and a letter of wishes to explain Mr Green's wishes. Fern Wills included a reputable, trusted solicitor firm as executors to manage distribution and probate, based on the best overall outcome. Mr. Green was content that his legacy would be enjoyed, free of guilt and dispute.

Please don't stress

Coping with the administration of a deceased loved one's assets can be a challenging and emotional time. Numerous legal and financial tasks must be completed, which can add to the stress of the situation. Our partners can assist you in managing these formalities for your family during this difficult time. They will handle the necessary paperwork, freeing you to concentrate on your personal grief and recovery.

Our partners always offer a free, no-obligation consultation. They will be honest about pricing and let you know if you don't need any help. Regardless of your decision, they will provide helpful information so you have everything to gain and nothing to lose.