Dec 6, 2018
As part of their services, Mordi & Co deals with uncontested Probate matters with assets solely in the UK. Fees are based on a percentage of the Gross Value of the estate.
Our fees range from 0.5% to 3.5% plus VAT with the average being between 0.75% - 1%.
Additionally there are the following disbursements:-
Fees from Registering a Caveat £20.00
Official Searches £3.00 (if there is a property comprised in the estate)
Application for Probate/Letters of Administration Fees £155.00 currently (new fee structure in 2019)
Office Copies £3.00 each
Fee for the Death Certificate £10.00 each
Fees for the Section 27 Trustees Act Notice (to be advised)
Telegraphic Transfers Fees £30.00 each
Taxes that may have to be paid
(a) Inheritance Tax
If the net estate exceeds the Inheritance Tax allowances, reliefs and exemptions, Inheritance Tax, calculated at 40%, will be payable on the amount exceeding the same.
(b) Capital Gains Tax
On the sale of the assets comprised in the estate, Capital Gains Tax is chargeable on the gains. For individuals the rate is 18% and for the executors/trustees 28%.
(c) Income Tax
Income Tax may be charged depending on the nature of the estate and final Tax Returns may need to be filed by the executors/Personal Representatives.
Factors that will affect our fees
The value of the estate
The nature of the assets in the estate
Corresponding with beneficiaries who do not speak English
Finding and tracing crucial documents relating to the assets in the estate
Finding and tracing beneficiaries in the UK and abroad
Dealing with beneficiaries under the age of 18 and the estate of beneficiaries who died since the death of the testator
Valuing the various assets comprised in a large and complex estate.
Disposing of a leasehold property which is unregistered and dealing with claims made by squatters to the estate
Disposing of a leasehold property comprised in the estate requiring an extension where there is an absent landlord
Entering protracted negotiations with the Valuation Office in respect of the value of a property for Inheritance purposes
Instructing a Firm of Accountants to compute the Income Tax, Capital Gains Tax submitting Tax returns in large and complex estates
The Key stages of a standard Probate Matter
(a) Taking Instructions
1. Attending the executors in person. Obtaining the Death Certificate of the deceased. Obtaining original Will, documents/letters relating to the assets and debts of the deceased. Obtaining identity documents of the executors, the identity documents of the deceased and any links to property held by the deceased.
2. Advising the Executors on the Probate procedure.
3. In some cases actually visiting the home of the deceased with the Executor and physically viewing the property and collecting and removing all relevant papers at the property
(b) Ascertaining the extent and value of the Estate and its debts
1. Obtaining 2-3 valuations of any property comprised in the estate
2. Obtaining valuations of any motor vehicles, shares, household effects, painting etc, held in the estate
3. Obtaining the balances on bank accounts held in the sole name of the deceased.
4. Obtaining the balances of the bank accounts held in the joint name(s) of the deceased and other person(s) for the purposes of Inheritance Tax.
5. Making enquiries as to the value of properties in which the deceased is a joint owner.
6. Making enquiries as to gifts made by the deceased in the last 7 years and gifts made over several years.
7. Making enquiries as to any transfer of properties transferred by the deceased in the last 7 years.
8. Making enquiries of other residences owned by the deceased.
9. Making enquiries as to whether the deceased was previously married and deaths of any previous spouse(s).
10. Making enquiries to ascertain the monies owing on a mortgage.
11. Making enquiries to ascertained any debts owed by the deceased.
12. Making enquiries to ascertain monies owing to utility companies, by the deceased.
(c) The submission of the Probate application and distribution
1. Once the value of all assets owned by the deceased and all debts owed by the estate are established, attending the executors to prepare the Form IHT 205 or Form IHT 400 and supporting forms as appropriate and preparing the Executor’s Oath for the executors to swear.
2. Once agreed by the executors, sending the Oath and the Will to the executors to swear and mark.
3. Applying to the District Probate Registry for the Grant of Probate/Letters of Administration. Sending the relevant Forms to HMRC with the first instalment of the Inheritance Tax, where possible. If it is not possible to send the Inheritance Tax, negotiating with HMRC to issue a Grant on Credit.
5. Considering the Inheritance Tax Assessment by the HMRC when received.
6. Submitting IHT 421 to the District Probate Registry when issued by HMRC.
7. On receiving the Grant, make arrangements for the Section 27 Trustees Act Notice to be made in the London Gazette and a local newspaper.
8. Making arrangements for the executors to sell the assets of the estate.
9. Making arrangements for the executors to discharge the estate’s debts and pay the balance of all Inheritance Tax, Capital Gains Tax and any Income Tax payable.
10. Prepare the draft Estates Account for the approval of the executors
11. Once the estate Accounts are approved, the time limits under the Section 27 Notice has expired, make arrangements to distribute the estate.
The Probate Team
Avis Johnson. A Solicitor and Partner. She was admitted in 2002 with over 16 years post qualifying experience.
Anthony Mordi. A Solicitor and Partner. He was admitted in 2000.
Fitzgerald Corbin. Consultant Solicitor has Master’s Degree from the London School of Economics and was admitted as a Solicitor in 1980. He has 38 years post qualifying experience.
Efuru Obua. Consultant Solicitor. She was admitted in Nigeria in 1991 as a Barrister and Solicitor. As a Solicitor in the UK in 1999. Combined she has 27 years post qualifying experience.
Michelle Allen – Deidrick. Consultant fee earner. She was admitted as a Solicitor in 2001 with 17 years experience in Property, Wills and Probate. She was a partner at Kaj & Co from 2008 – 2010 and is currently an Assistant Probate Practitioner.
You may find the following helpful:
Wills and Probate