Wills, Probate, LPA's & Trusts
Wills
If you want to ensure that your assets pass to those that you wish to benefit it is essential that you make a Will. It is a common misconception that if you are in a marriage or civil partnership that the surviving partner will automatically inherit the estate this is simply not the case as the law sets out how your assets will pass if you have not made a Will. This applies to children and close family members. If it is your intention for a close friend to benefit then they will not do so unless your Will makes provision for this. If you wish to have any control of how your assets are distributed following death make a Will.
It is now common practice for couples to try to ensure that their assets will pass to their intended beneficiaries by drawing Mirror or Mutual Wills. Mirror Wills are drawn to include the same or almost the same terms with each party agreeing to keep to the terms of their will after one has party has died. Unfortunately, this agreement is not legally enforceable and the surviving party can make a new Will thus disinheriting the intended beneficiaries.
Mutual Wills offer more protection as each party’s Will contains a provision indicating that each party will be legally bound. Mutual wills may not always be suitable as circumstances change and they do not provide flexibility to allow for changing circumstance.
Trusts
A Trust Will can be prepared to protect the assets of the parties by ensuring that the assets of the estate are held by the appointed Trustees and are distributes to the beneficiaries in accordance with the deceased ‘s wishes whilst retaining the right for the survivor to change their Will to deal with changing circumstances but ensuring that the term of the Trust are met.
A Deed or Declaration of Trust can be drawn in life indicating how property is to be held, the intended beneficiaries and the terms of the Trust. A Trust can also be used to minimise tax liability.
Probate
In the event of death, bereaved family members and friends also need the support of an understanding practitioner to assist in administering the estate of a loved one by obtaining the necessary Grant to administer the estate from the Probate Registry call in the estate assets and meet the obligation of and distribute the estate assets in accordance with the Terms of the Will.
Bevan Evans & Capehorn are pleased to be able a supportive service at this difficult time.
Lasting Powers of Attorney
The law prides that a person can donate a power of attorney to 3rd persons to act on their behalf in the event that they are unable to do so themselves. Lasting powers of Attorney can be donated in relation to Property and financial matters and Health And Welfare Maters to be used when the Donor wishes and when the Donor is too infirm to act for themselves. The Lasting Power of Attorney must be prepared in the correct manner and registered with the Office of the Public Guardian. The Donor must have the mental capacity to grant such power s to act in this manner and this must be certified as such by a relevant person
Wills
If you want to ensure that your assets pass to those that you wish to benefit it is essential that you make a Will. It is a common misconception that if you are in a marriage or civil partnership that the surviving partner will automatically inherit the estate this is simply not the case as the law sets out how your assets will pass if you have not made a Will. This applies to children and close family members. If it is your intention for a close friend to benefit then they will not do so unless your Will makes provision for this. If you wish to have any control of how your assets are distributed following death make a Will.
It is now common practice for couples to try to ensure that their assets will pass to their intended beneficiaries by drawing Mirror or Mutual Wills. Mirror Wills are drawn to include the same or almost the same terms with each party agreeing to keep to the terms of their will after one has party has died. Unfortunately, this agreement is not legally enforceable and the surviving party can make a new Will thus disinheriting the intended beneficiaries.
Mutual Wills offer more protection as each party’s Will contains a provision indicating that each party will be legally bound. Mutual wills may not always be suitable as circumstances change and they do not provide flexibility to allow for changing circumstance.
Fixed Fees
• Standard Wills = £300+ VAT
• Mutual Mirror Wills ( Husband and Wife ): £550 + VAT
• Wills including a discretionary trust: £600 + VAT
We will provide you with a Wills Questionnaire for completion and take your instructions by way of an appointment with you.
We will prepare a draft Will for your consideration and amend it if appropriate.
All of the above are subject to hourly rate if unduly protracted/complicated.
Lasting Powers of Attorney
The law prides that a person can donate a power of attorney to 3rd persons to act on their behalf in the event that they are unable to do so themselves. Lasting powers of Attorney can be donated in relation to Property and financial matters and Health And Welfare Maters to be used when the Donor wishes and when the Donor is too infirm to act for themselves. The Lasting Power of Attorney must be prepared in the correct manner and registered with the Office of the Public Guardian. The Donor must have the mental capacity to grant such power s to act in this manner and this must be certified as such by a relevant person.
Fixed Fees
• Last Power of Attorney (LPA) health & welfare: £750 + VAT plus disbursements
• Last Power of Attorney (LPA)property & finance: £750 + VAT plus disbursements
All of the above are subject to hourly rate if unduly protracted/complicated.
Probate & Estate Administration
Bevan Evans & Capehorn are pleased to be able a supportive service at this difficult time.
Administration of Estate Cases – Range of Costs
The Hourly Rate charged for conducting Probate Matters is £200 + VAT
Assisting you with the obtaining of a Grant to Probate or Letters of Administration. In order to administer the Estate of the deceased, it is necessary to obtain Grant of Probate where the deceased left a Will or Letters of Administration in other cases. This gives Authority to the Executors or Administrators to collect in the Assets of the Estate to obtain either it is also necessary to prepare the relevant Inheritance Tax return and comply with other formalities: To obtain A grant to Probate or Letters of Administration with no further action Once obtained then the estate of the Deceased can be Administered, all assets ascertained and collected in: All estate debts be ascertained in readiness for payment. Inheritance Tax Liability ascertained and arrangement for payment made if applicable. Witness Statements of Truth prepared and application for Grant of Probate /Letters of Administration applied for. Once obtained the Assets of the estate can be collected and distributed in accordance with the Will or the Intestacy Provisions and Estate Accounts prepared.
Pricing for Obtaining Grant of Probate Letters of Administration / Administering the Estate:
Simple case confined to obtaining Grant to Probate
• Letters of Administration no further work £750 -£1000 (excluding VAT) this will not be appropriate where IHT payable
Cases to include full Administration of the Estate
• Simple Cases: £3,000 to £6.000 (excluding VAT)
• Medium complexity case: £7.000 - £15000 (excluding VAT)
• High complexity case: £15,000 – above: unlikely to exceed £25,000 (excluding VAT)
Also, we can make an additional charge based on the value of the estate... The maximum that we can add to our basic charges is 1% of the gross estate (excluding any residence where the deceased resided when the rate will be ¼%) The percentage charged reflects the complexity of the case.
What could make a case more complex?
Difficulty in proving the Will and investigating the existence and whereabouts of the will and making an application to prove the will, Difficulties in collecting assets some assets may be held in foreign jurisdictions. Assessing IHT liabilities complicated accounting system regarding assets: Administering Discretionary Trusts. Searching for missing beneficiaries.
Probate fees will be payable which in England and Wales are £155,00 Probate fees plus additional costs for obtaining copies of the grant of £10.00 for 3 copies. Additional fees may be payable on making an application to the Probate Registry., Fees will vary in other jurisdictions.
In the event there is a dispute regarding the Will additional costs will be incurred, these are not included in the above and will be as appropriate for contentious litigation.
How long will my matter take?
The time that it takes from taking your initial instructions to obtaining of Grant of Probate / Letters of Administration and completing the Administration of the estate varies regarding the complexity of your case. A more accurate timescale once we have more information about your specific case.
In simple cases involving obtain Grant of Probate /Letters of Administration, only this should be obtained in 3-4 months. Cases involving fully administering the estate should be completed with 12 -24 months. If there is a dispute in relation to the Will and/or claim against the estate the above timescales will not be applicable and will need to be re-assessed.
Acting on a Grant Only basis (Gross value of non-taxable estate under £325,000)
Key stages and timescales
Stage 1 – (3 weeks)
• Conflict of interest check
• Initial meeting with Executors/Administrators
• Anti-Money Laundering Identity checks
• Details provided by Executors/Administrators regarding Assets and Liabilities of estate
• Advice provided by lawyer and confirmed in writing regarding next steps.
Stage 2 – (12 weeks)
• Preparation of the draft Oath, IHT 205 and schedule of assets and liabilities
• Provide this above to the Executors/Administrators for approval and swearing
• Thereafter necessary Grant paperwork sent to Probate Registry to issue the Grant of Representation
Full administration of the Estate (Non-Taxable Estate)
Key stages and timescales
Stage 1 – 6-12 weeks
• Conflict of interest check
• Initial meeting with Executors/Administrators
• Anti-Money Laundering Identity checks
• Details provided of all known assets and liabilities taken for lawyer to contact for date of death valuations
• Contact all asset and liability holders and relevant bodies to include HMRC/DWP and await responses
• Arrange Estate Agents valuation(s) for Property ( as applicable)
• Place relevant advertisements to establish unclaimed assets (Landmark Search)
Stage 2 – 4-6 weeks
• Prepare relevant Oath, IHT 205
• Prepare schedule of assets and liabilities to provide to Executors/Administrators.
• Once approved by Executors/Administrators appointment made to swear necessary paperwork to apply for Grant
Stage 3 – 4 – 6 weeks
• Once documentation approved, appointment scheduled to attend Solicitors and swear necessary paperwork.
• Thereafter relevant Grant documentation sent to Probate registry and await issue of Grant of Representation.
Stage 4 – 4 – 8 weeks
• Once Grant received, lawyer sends to all relevant institutions to collect in assets of the estate ( or deal with transfer if applicable.)
• Six month period for claims to be made under The Inheritance Provision for Family and Dependents Act 1975 begins from date Grant issued ( IPFDA Claims). Those persons who feel they have a claim against the estate may lodge a claim.
• Property placed on open market ( if applicable)
• Statutory Advertisements to Creditors placed – 2 month waiting period to expire.
• Beneficiaries to the Estate under the Will/Intestacy contacted and identification/certificates requested
Stage 5 – 6-10 weeks
• Once sufficient assets in the estate are realised, Lawyers first interim bill raised and proceeds paid (usually) from estate
• Draft Estate accounts prepared for approval of Executors/ Administrators
• Liabilities to the estate paid
Stage 6 – 2 – 6 weeks
• Income tax position of the estate finalised (liaising with HMRC/Accountant as applicable)
• Ensure the 6 month IPFDA Claim period passed and no notifications, provided property sold (or transferred as applicable) and all liabilities and utility bills paid – Lawyer produces the final Estate Accounts for Executors/Administrators approval.
• Final Lawyers invoice produced
• Once Estate Accounts approved and sufficient documentation from all beneficiaries, distribution made in accordance with terms of the Will or intestacy rules.
Please note that the above timescales are dependent upon third parties claims under IPFDA.
Full administration of the Estate (taxable estate)
Key stages and timescales
Stage 1 – 6-12 weeks
• Conflict of interest check
• Initial meeting with Executors/Administrators
• Anti-Money Laundering Identity checks
• Details provided of all known assets and liabilities taken for lawyer to contact for date of death valuations
• Contact all asset and liability holders and relevant bodies to include HMRC/DWP and await responses
• Arrange RICS Professional Valuation of the property (properties)
• Place relevant advertisements to establish unclaimed assets (Landmark Search)
Stage 2 – 4 – 6 weeks
• Subject to adequate replies above, prepare relevant Oath, IHT 400 (Full Inheritance Tax account to HMRC)
• Prepare schedule of assets and liabilities to provide to Executors/Administrators.
• Once approved appointment made to swear necessary paperwork to apply for Grant
Stage 3 – 4 – 6 weeks
• Once Probate documentation approved, appointment scheduled to attend Solicitors and swear necessary paperwork.
• Tax documentation sent to HMRC.
• Liaise with financial institutions (Or Executors/Administrators as applicable) to arrange payment of first instalment of Inheritance Tax.
Stage 4 – 4 – 6 weeks
• Once HMRC have issued IHT421 receipt, sent to Probate registry together with Oath (and Will if applicable) to issue Grant of Representation to the Estate.
Stage 5 – 4 – 8 weeks
• Once Grant received, lawyer sends to all relevant institutions to collect in assets of the estate ( or deal with transfer if applicable)
• Six month period for claims to be made under The Inheritance Provision for Family and Dependents Act 1975 begins from date Grant issued ( IPFDA Claims). Those persons who feel they have a claim against the estate may lodge a claim.
• Property placed on open market ( if applicable)
• Statutory Advertisements to Creditors placed – 2 month waiting period to expire.
• Beneficiaries to the Estate under the Will/Intestacy contacted and identification/certificates requested
Stage 6 – 6-10 weeks
• Once sufficient assets in the estate are realised, Lawyers first interim bill raised and proceeds paid (usually) from estate
• Draft Estate accounts prepared for approval of Executors/ Administrators
• Liabilities to the estate paid ( including next instalments of IHT if applicable)
Stage 6 – 6-12 weeks (dependent upon assets and queries raised by HMRC)
• Income tax position of the estate finalised (liaising with HMRC/Accountant as applicable)
• Ensure the 6 month IPFDA Claim period passed and no notifications, Provided property sold ( or transferred as applicable) and all liabilities and utility bills paid – Lawyer produces the final Estate Accounts for Executors/Administrators approval.
• Final Lawyers invoice produced
Stage 7 – 4- 8 weeks (dependent upon third parties claims)
• Once Estate Accounts approved and sufficient documentation from all beneficiaries, distribution made in accordance with terms of the Will or intestacy rules.
Details of lawyers who may work on your case:
Melanie, Gaynor and Christopher deal with all categories of the case and are qualified Solicitors. Christopher is only likely to be involved in Probate matters if they become contentious - Any solicitors working on the case are charged at £200 + VAT
Details of supervisors:
Melanie Bevan Evans and Gaynor Davies undertake supervision of matters conducted by our other lawyers.
Trusts
A Trust Will can be prepared to protect the assets of the parties by ensuring that the assets of the estate are held by the appointed Trustees and are distributes to the beneficiaries in accordance with the deceased ‘s wishes whilst retaining the right for the survivor to change their Will to deal with changing circumstances but ensuring that the term of the Trust are met.
A Deed or Declaration of Trust can be drawn in life indicating how property is to be held, the intended beneficiaries and the terms of the Trust. A Trust can also be used to minimise tax liability.
Fixed Fees
• Deeds of Trust: £250 + VAT plus disbursements
The above is subject to an hourly rate if unduly protracted/complicated.
Cost transparency is important to Bevan-Evans & Capehorn
Where possible we aim to offer a fixed fee for our services. However, if the case is unduly protracted/complicated an additional hourly rate will be applicable.
Due to the nature of legal cases, there may be occasions where unforeseen complexity in your case arises or the case requires additional work, we will inform you and provide a revised quote of costs.
Any factors that may potentially affect the costs in your case will be made clear at the initial consultation. If there are any factors that you believe may increase the costs, please let us know.