Probate fees can feel like an added layer of stress during an already difficult time. Understanding the fees and costs can help you budget effectively and avoid surprises. Knowing what to expect allows for better preparation and peace of mind, whether managing an estate or planning ahead.

What is probate and when is it required?

Probate is the legal process of administering the estate of someone who has passed away. It involves confirming the will’s validity (if there is one) and ensuring the assets are distributed according to the deceased’s wishes or, if no will exists, intestacy rules. Not all estates require probate – if the assets were jointly owned or the estate is relatively small, probate might not be necessary.

However, when probate is required, it typically applies if the estate includes property, large sums in bank accounts, or shares. Banks and financial institutions often set their own thresholds for when probate is necessary, so it’s worth checking directly with them.

How much are probate application fees?

Probate application fees are standard across England and Wales, with current fees set at:

• £300 for estates valued over £5,000.
• There is no fee for estates valued below £5,000.

These fees apply whether you apply personally or through a solicitor. However, the cost of legal assistance is separate and can vary significantly.

Professional fees and solicitor costs

Many people hire a solicitor or probate specialist to manage the process. The cost of professional probate services depends on the size and complexity of the estate, but the following are common approaches to charging:

• Fixed fee: Some firms offer a flat rate for straightforward estates. This can range from £500 to £2,000, depending on the level of service required.
• Hourly rate: For more complex estates, solicitors may charge hourly, typically between £200 and £300 per hour.
• Percentage of the estate: Some solicitors charge a percentage of the estate’s value, usually around 1-5% plus VAT.

It’s important to get a detailed quote upfront to avoid unexpected costs. Be clear on whether the fee covers the entire process or just parts, such as obtaining the Grant of Probate.

Additional expenses to consider

Beyond the application and professional fees, several other costs may arise during probate. These include:

• Inheritance tax (IHT): If the estate exceeds the IHT threshold of £325,000, tax may be payable at 40% on the value above this limit. Certain exemptions, such as gifts to spouses or charities, can reduce the amount due.
• Valuation fees: Assets like property, jewellery, or artwork often require professional valuations, costing between £200 and £500 per item.
• Property clearance and maintenance: If the deceased owned property, ongoing costs for utilities, council tax, and maintenance can accumulate quickly.
• Accountancy fees: Estates with significant assets or income may require accountancy services, particularly if income tax returns or capital gains tax calculations are necessary.
• Trust fees: If part of the estate is held in trust, ongoing trustee fees may apply.

How to manage probate costs

Managing probate costs starts with good organisation and early planning. Here are a few tips to help keep expenses under control:

• Shop around for probate services: Get multiple quotes from solicitors and probate specialists. Don’t hesitate to ask for a breakdown of fees.
• Consider doing it yourself: For straightforward estates, applying for probate personally can save significant legal fees. The government provides step-by-step guidance online.
• Keep detailed records: Ensure all receipts, valuations, and financial documents are carefully recorded to avoid delays and additional costs.
• Review inheritance tax allowances: Use exemptions and reliefs, such as the residence nil-rate band (currently up to £175,000), to reduce IHT liabilities.
• Communicate with beneficiaries: Keeping beneficiaries informed throughout the process can help manage expectations and avoid disputes that could lead to costly legal intervention.

Common mistakes that lead to higher costs

Mistakes during probate can result in delays and extra costs. Some common pitfalls include:

• Failing to identify all assets and liabilities: Missing out on accounts or debts can complicate the process later.
• Incorrect inheritance tax calculations: Errors in IHT calculations may lead to penalties or overpayment.
• Disputes between beneficiaries: Family disagreements can escalate and require legal intervention, increasing overall costs.
• Delaying the process: The longer probate takes, the more likely costs for property maintenance and other expenses will accumulate.

Moving forward

Probate fees and associated costs are an inevitable part of handling an estate, but understanding them in advance can make the process smoother and less stressful. Being prepared and informed can reduce unnecessary expenses and ensure the estate is settled efficiently. If you need probate or estate planning support, we’re here to help guide you through the process.

If you’d like to discuss any aspect of probate properties, feel free to get in touch. We’re always happy to help.