Wills are personal and unique to your own unique personal set of circumstances. They are a challenge to draft as they only become effective on death. For this reason, we do not give a fixed fee and can only charge on the basis of time spent and the various legal challenges that may arise for tax minimization, how and when your will takes effect.
We offer an initial free consultation of up to 30 minutes after which a fee would be estimated and confirmed in a detailed breakdown in our client care letter known as a CCL.
Alternatively, an initial telephone consultation of up to 30 minutes after which a detailed estimate of fees would be given.
The time expended on drafting from when you first instruct us will depend on the complexity of your affairs and whether relative tracing and asset searches are required. Typically, if straight forward an initial draft will would be produced within a week.
Death bed wills and urgent wills for a terminally ill person would need to be estimated as a bespoke service on application and based on the hourly charge out rate of the solicitor instructed.
At a time that could be overwhelming, often full of uncertainty, intense emotions and distress. Our solicitors in this field will always do their best to treat you with both empathy and efficiency.
· Drafting wills.
· Post-death variations.
· Cross-border estates, for both UK domiciled and non-domiciled individuals.
· Conflicts of law and joined up tax advice where more than one jurisdiction is involved.
· Contentious claims by beneficiaries of claimants.
· Intestacy.
· Administrating and distributing the estate.
Cruickshanks charge out rate for both Wills and Probate matters will usually be at a senior directors prevailing charge out rate as agreed and stated in our Client Care Letter or an assistant solicitor’s time and or trainee at a rate again agreed in advance and in our CCL. The time spent and the hourly rate is the main method of our fee calculation and tasks will be delegated to more junior members of staff as appropriate at his discretion as being within their competence in the interests of completing any aspects in the most cost-effective way to either you or the estate. Please see below for indicative fees on certain type of applications.
In the administration of estates both time and the value of the estate to be administrated are combined to determine our final fee. The concept of proportionality to the value of what is ultimately at stake must be borne in mind at all times. From time to time, you will be kept appraised of the fees incurred on a time spent basis so that it should become obvious if and when the point has been reached that any further legal fees become a questionable expense that may have to be reconsidered before any further action on Cruickshanks part.
A large estate may include a fee in addition to time spent to take account of any professional risk and any special skills required. This is based on a scale of 1% on estates with a gross value of up to £1 million and thereafter on the balance over £1 million @ 0.25% up to £2.5 million. £2.5 million and more at 0.05% plus VAT.
In the event that time is spent is less than the scale fee then the higher will be charged but not both elements are charged unless there are special circumstances such as litigation by or against the executors, particular problems over some aspect of administration, such as litigation by or against the executors, particular problems over some aspect of administration, such as disrepair of real estate or the need to remove squatters or recover property etc.
Normally, Cruickshanks will bill monthly, unless an arrangement is made to the contrary in writing and we would expect a quarterly retainer to cover the anticipated fees for each quarter in advance unless it is agreed in advance of our firm’s fees being deferred pending sale of an asset in the estate. In this event Cruickshanks may require an element of interest depending upon any lengthy delay in settlement of fees at our banks current rate for authorised overdraft interest. See our standard terms and conditions:
https://www.lawco.co.uk/Lawco/service-detail.htm?serviceId=14
Normally, fees for acting for the executors are payable by the estate unless the executors act in breach of trust or beyond the normal scope of their duties, in which case the fees may become the personal liability of the executor. In the event the estate is either insolvent or has no property that can be realized then our fees will be the personal responsibility of the executors.
A £1 million estate without IHT could amount to 12 hours of work by our senior director. The total costs could amount to £6,360 plus VAT.
A £2 million estate with a IHT liability could amount to 24 hours of work by our senior director. Depending on the scale, the total costs could amount to £12,720 plus VAT.
Please note that HMRC will charge interest rates for late payments of IHT if not paid within 6 months of death. So time can be of essence to avoid this additional charge. Please refer to the HMRC interest rate calculator:
https://www.hmrc.gov.uk/tools/inheritancetax/interest-rate-calculator.htm
Examples of our current rates are:
· Senior Director - £450 per hour plus VAT.
· Director - £350 per hour plus VAT.
· Solicitor - £280 - £350 per hour plus VAT.
· Trainee Solicitor - £180 per hour plus VAT.
· Paralegal - £200 plus VAT.
We also ask junior or support staff to undertake tasks where appropriate and in order to provide a cost-efficient service.
Disbursement costs are handled by us on your behalf to ensure a smoother process. Our disbursement costs are relative to your matter, this includes payable costs to third parties such as:
· Probate application fees.
o £300 (if the value of the estate is over £5,000).
· Death certificates.
o £12.50
· Extra copies of the Grant of Probate
o £1.50 for each copy
· Advertisements in the London Gazette (for protection against unexpected claims).
o £92.20 plus VAT (in XML, webform, Gazette template) All other advertisers and public sector placing non-mandatory notices.
o £125.80 plus VAT (in other forms) All other advertisers and public sector placing non-mandatory notices.
o £63.45 plus VAT (in XML, webform, Gazette template) Public sector placing mandatory notices or state notices.
o £83.60 plus VAT (in other forms) All other advertisers and public sector placing non-mandatory notices.
· Advertisements in local newspapers (for protection against unexpected claims).
o £240.00 plus VAT.
· Valuation costs.
o Chartered surveyors could charge between £100 to £1,000 plus VAT.
· Accountancy costs.
o Chartered accountants could charge between £100 to £1,000 plus VAT.
The time taken to obtain the Grant of Probate on your behalf will depend on a number of factors, such as your collating and providing us with all of the information and details that we will need in order to complete the application documents for you. Once we have received all of the necessary details, it would normally take between 4 to 24 months to obtain the Grant of Probate for you. If it is likely to take longer than this, we will discuss this with you as early as possible.
· Obtaining the grant of probate (3 to 6 months)
o Depending on the workload of the probate registry.
· Collecting the assets (3 to 6 weeks).
o Depending on how many assets, bank accounts,
· Distributing the assets (1 week).
o Depending on how many beneficiaries.
o Complex estates involving inheritance tax issues that are disputed could take several months.
When carrying out a Grant Only application we will do the following:
· Provide you with a dedicated and experienced probate solicitor to work on your matter.
· Identify the legally appointed executors or administrators and beneficiaries.
· Accurately identify the type of Probate application you will require.
· Advise you of all the information we require in order to complete the necessary documentation to apply for Grant of Probate.
· Complete the Probate application and relevant HMRC form.
· Prepare the Statement of Truth.
· Make the application to the Probate Registry on your behalf.
· Obtain Probate.
· Send you the Grant of Probate and copies.
If at the outset of our instructions the plan is to carry out a Grant Only application and it is then for you to instruct us to carry out more work than covered above, such as our writing to third parties or to administer the estate, the fees for the full administration of an estate referred to above will apply.
Full administration of an estate
Full administration of a simple estate that requires an IHT205 return and does not require a full IHT return (IHT400):
Up to £6,360 plus VAT (at 20%). This is an estimated fee which will likely apply to simple estates.
Full administration of an estate that requires a full IHT400 return.
As advised above under ‘our fees’ this may be charged on the basis, outlined under “our fees” above, based on the gross value of the estate or based on the hourly rates recorded by the person undertaking the work for you. We will always discuss the pricing model with you at the outset of the matter so you understand how the charges will work.
When administering an estate, we will carry out the same services as for a grant only application above plus:
· Collect in and distribute all assets relating to the estate in accordance with the terms of the Will or, if there is no Will, the laws of intestacy.
If there is no Will, or if the estate consists of any shareholdings (such as stocks or bonds), or if there are assets overseas, there are likely to be additional costs that could range significantly depending on the estate and the advice we will need to provide. We can give you a more accurate quote once we have more information.
The estate may be subject to Inheritance Tax, or other taxes. If so, this, and any additional related costs to advise on or deal with these, will be discussed with you. Taxes will normally need to be paid from the estate’s assets.
There will be additional charges if specific work is required to deal with assets, for example the sale or conveyance of a property within the estate or the redemption of a mortgage.
In addition to our legal fees, there will be various expenses and disbursements that will also need to be paid when administering an estate (disbursements are costs related to your matter that are payable to third parties, such as court fees). These will need to be paid initially by the executors or administrators, but can then be reclaimed from the estate. See example of disbursements above.
