Executor of a will
Discussion
Hi, I'm after some advice please...
As the executor of a will for someone who died recently, I've sought the help of a solicitor. Just got a letter back yesterday from an associate dealing with the case saying their fees would not likely exceed £1000, but no details of what they actually plan to do on my behalf.
This is not normally the way I do business, is this normal practice for solicitors?
Is £1000 ball park for this type of work?
There are assets in the estate which would likely result in inheritance tax, should I also seek the help of an accountant?
Many thanks.
As the executor of a will for someone who died recently, I've sought the help of a solicitor. Just got a letter back yesterday from an associate dealing with the case saying their fees would not likely exceed £1000, but no details of what they actually plan to do on my behalf.
This is not normally the way I do business, is this normal practice for solicitors?
Is £1000 ball park for this type of work?
There are assets in the estate which would likely result in inheritance tax, should I also seek the help of an accountant?
Many thanks.
If it's a good solicitor, they'll be able to give good tax advice on the relevant matters - if they're not sure they'll advise you to see an accountant (I believe some trust matters can't be handled by accountants, only solicitors).
Guessing it's a large firm, if they're using the term "associate" (who is a solicitor, it's just a hierarchichal [sp!] job title ) - you could just ask them what they're likely to do. I would think (IANAL!!) that they have to give you a planned scheme as part of the "letter of engagement" type thing when you agree to them acting.
Guessing it's a large firm, if they're using the term "associate" (who is a solicitor, it's just a hierarchichal [sp!] job title ) - you could just ask them what they're likely to do. I would think (IANAL!!) that they have to give you a planned scheme as part of the "letter of engagement" type thing when you agree to them acting.
The solicitor (in effect as joint executor with you) will ensure that all the legal niceties are covered, in terms of returns to HMRC, getting probate granted, settling the estate. They might also suggest ways of mitigating any IHT that may be due on the estate.
£1,000 isn't a lot, perhaps 3 or 4 hours of an associate's time, secretarial time, letters and disbursements, so I'd guess the estate is pretty straightforward.
£1,000 isn't a lot, perhaps 3 or 4 hours of an associate's time, secretarial time, letters and disbursements, so I'd guess the estate is pretty straightforward.
Red V8 said:
Hi, I'm after some advice please...
As the executor of a will for someone who died recently, I've sought the help of a solicitor. Just got a letter back yesterday from an associate dealing with the case saying their fees would not likely exceed £1000, but no details of what they actually plan to do on my behalf.
This is not normally the way I do business, is this normal practice for solicitors?
Is £1000 ball park for this type of work?
There are assets in the estate which would likely result in inheritance tax, should I also seek the help of an accountant?
Many thanks.
As the executor of a will for someone who died recently, I've sought the help of a solicitor. Just got a letter back yesterday from an associate dealing with the case saying their fees would not likely exceed £1000, but no details of what they actually plan to do on my behalf.
This is not normally the way I do business, is this normal practice for solicitors?
Is £1000 ball park for this type of work?
There are assets in the estate which would likely result in inheritance tax, should I also seek the help of an accountant?
Many thanks.
I was a joint executor for my Grans Will with my Dad. It was a simple will, but I bowed down to my dad wanting to get the solicitor sorting it all out. It reduced my Inheritance by £3k (Solicitor charged over £8K) for something I could have done in about 6 hours. Closing 6 accounts and an income bond and distributing the cash took 11 months.
I'd say - Look into what it entails (Local Libary will have a book or 2) and decide how hard you think it is.
jacko lah said:
I was a joint executor for my Grans Will with my Dad. It was a simple will, but I bowed down to my dad wanting to get the solicitor sorting it all out. It reduced my Inheritance by £3k (Solicitor charged over £8K) for something I could have done in about 6 hours. Closing 6 accounts and an income bond and distributing the cash took 11 months.
You having a laugh? You think you could have done in 6 hours what you were charged 8k for? If you do, then you were stupid for paying it! Did that include tax bill or something like that?
Yes, you may be able to do it yourself, but the risk of doing something wrong and getting fined for it is great - and the chances of a solicitor reducing the tax burden by more than the cost of the fees is worth it IMHO.
A lot of the logistical stuff you probably do yourself quite easily, even obtaining the Grant of Probate if you're prepared to do some reading to find out what's required.
The one thing I'd venture you couldn't do yourself is complete and file the IHT accounts. I vaguely remember having to learn how to do these at Law School and they were a complete pain the arse.
When my nan died a couple of years back, the two sons-in-law (my dad and my uncle) were the executors under the will. It was relatively straightforward and just under the IHT threshold so they did the spade work and just left the solicitor to do the bear minimum - obtain the Grant etc etc - so as to minimise the legal fees.
I'm not in the field but the quote you've been given doesn't seem unreasonable on the face of it. I'd guess the solicitor is unable to give you a more concrete figure out present because they don't know exactly how much work will be required and, since it's charged on a time-spent basis, they can't tell you exactly what it will cost. If you ask them to explain what the quote takes in in anticipated work, you'll have a better feel for whether it's justified.
The one thing I'd venture you couldn't do yourself is complete and file the IHT accounts. I vaguely remember having to learn how to do these at Law School and they were a complete pain the arse.
When my nan died a couple of years back, the two sons-in-law (my dad and my uncle) were the executors under the will. It was relatively straightforward and just under the IHT threshold so they did the spade work and just left the solicitor to do the bear minimum - obtain the Grant etc etc - so as to minimise the legal fees.
I'm not in the field but the quote you've been given doesn't seem unreasonable on the face of it. I'd guess the solicitor is unable to give you a more concrete figure out present because they don't know exactly how much work will be required and, since it's charged on a time-spent basis, they can't tell you exactly what it will cost. If you ask them to explain what the quote takes in in anticipated work, you'll have a better feel for whether it's justified.
Having just been through this very process, it all depends on how easy it is to collect all the info that relates to the estate. The main form you have to fill in for inheritance tax (IHT200) is not dissimilar to a tax return (lots of seperate sections depending on what 'holdings and interests' the deceased had)...and is really not too difficult (and I am no accountant) - there is plently of help on the HMRC website, and a 0845 helpline as well.
The main hassle is for stuff like shares - the London Stock Exchange website has a 'probate' section that can calculate all you need to complete the relevant section on the IHT form. With property - a couple of valuations from an estate agents are all you need. With valuations of stuff like ISA's, funds etc, you need to send copies of the death certificate for them to release a valuation at the date of death... You then have an option to either calculate the tax yourself, or leave it to HRMC. I left it to them...and the figure was a little lower than I had 'guesstimated'
Once IHT 200 is sent off, HRMC will look at the forms, and so long as they are happy will send back a statement telling you how much they want in tax.. once this has been paid, they will send back form D20 - you send this and some other stuff (original will etc) off to probate office, they interview you, you swear on the bible etc, and in a short while the grant of representation arrives.
Like I said, if it is an easy estate - consider doing it yourself. It is not too difficult..
The main hassle is for stuff like shares - the London Stock Exchange website has a 'probate' section that can calculate all you need to complete the relevant section on the IHT form. With property - a couple of valuations from an estate agents are all you need. With valuations of stuff like ISA's, funds etc, you need to send copies of the death certificate for them to release a valuation at the date of death... You then have an option to either calculate the tax yourself, or leave it to HRMC. I left it to them...and the figure was a little lower than I had 'guesstimated'
Once IHT 200 is sent off, HRMC will look at the forms, and so long as they are happy will send back a statement telling you how much they want in tax.. once this has been paid, they will send back form D20 - you send this and some other stuff (original will etc) off to probate office, they interview you, you swear on the bible etc, and in a short while the grant of representation arrives.
Like I said, if it is an easy estate - consider doing it yourself. It is not too difficult..
Gassing Station | Business | Top of Page | What's New | My Stuff