Reasonable fixed fee for obtaining probate/administering an estate?

Footslog

I've been talking to a large legal organisation who specialise in this service. I don't want to handle the estate myself.

The only noteworthy assets are a property worth about £700,000-750,000, plus bank accounts and cash savings of about £130,000. No complications that I can see.

The will is very simple - myself and my sister are equal beneficiaries.

For the full 'soup-to-nuts' service I've been quoted nearly £15000.

Does this seem reasonable? TBH, I don't know what I should expect - I'd appreciate any observations. 

sheramber

Does that include selling the house?

Footslog

sheramber said:

Does that include selling the house?

Yes, it does include the sale of the house.

sheramber

So there will be estate agency fees included as well as legal costs for selling.

In view of the size of the estate , is there any inheritance tax liability?

These are all costs  in administering the estate. 

Where the solicitors are based will also reflect in the fees they charge.

Billxx

Make sure you ask the solicitor if the quoted cost includes all disbursements.

Keep_pedalling

So if you don’t want to do it what about your sister? A simple estate is not difficult at administer and apart from chucking £15k away solicitors tend to take a lot longer to wind up an estate than a lay person does.

Footslog

sheramber said:

So there will be estate agency fees included as well as legal costs for selling.

In view of the size of the estate , is there any inheritance tax liability?

These are all costs  in administering the estate. 

Where the solicitors are based will also reflect in the fees they charge.

Thanks for this  - It's possible there is IHT liability, I'm not sure. 

Footslog

Billxx said:

Make sure you ask the solicitor if the quoted cost includes all disbursements.

Will do, thanks Bill.

Footslog

Keep_pedalling said:

So if you don’t want to do it what about your sister? A simple estate is not difficult at administer and apart from chucking £15k away solicitors tend to take a lot longer to wind up an estate than a lay person does.

Will think about that, thanks!

lr1277

As a point of comparison, the accountancy firm I use, is quoting 1% of the estate's value to do probate. But my dad had a slightly complicated tax return to my mum wanted the accountant's involved. There is a minimum charge of £1.5k or £2k. This is from a firm based in Hertfordshire.

I don't know what exactly the accountancy firm will do, but no property sales involved. Just changing the ownership of properties from jointly owned to single ownership at the land registry. We may have to do that ourselves or get a lawyer to help.

I don't know exactly what the firm will do as mum and I have not had our first meeting with them. However they say they will submit all the tax returns and the forms for probate.I shall find out next week.

As an aside, my dad submitted his tax returns electronically. I was going to do the same for his returns now that he has passed. But apparently you can't submit (certain) forms electronically after that person has died. Has to be paper forms or I guess forms submitted by a solicitor/accountant. Again I will find this out when I meet the accountants.

HTH

Keep_pedalling

lr1277 said:

As a point of comparison, the accountancy firm I use, is quoting 1% of the estate's value to do probate. But my dad had a slightly complicated tax return to my mum wanted the accountant's involved. There is a minimum charge of £1.5k or £2k. This is from a firm based in Hertfordshire.

I don't know what exactly the accountancy firm will do, but no property sales involved. Just changing the ownership of properties from jointly owned to single ownership at the land registry. We may have to do that ourselves or get a lawyer to help.

I don't know exactly what the firm will do as mum and I have not had our first meeting with them. However they say they will submit all the tax returns and the forms for probate.I shall find out next week.

As an aside, my dad submitted his tax returns electronically. I was going to do the same for his returns now that he has passed. But apparently you can't submit (certain) forms electronically after that person has died. Has to be paper forms or I guess forms submitted by a solicitor/accountant. Again I will find this out when I meet the accountants.

HTH

Unless there is a business to wind up or something requiring complex tax returns I can’t see why you would need an accountant to wind up his estate. Assuming your parents were married, If everything is going to your mother them the estate is exempt so no IHT return will be required, probate is not required for the home, although may be needed for other assets such as equities or large cash deposits.

1% could be a very big bill for very little effort.