Probate advice please

[Thischarmlessgirl]

Hi
A close relative died last week, she has named me as executor of her Will. The Will Is relatively straightforward. The estate is probably worth around £900k (property and share portfolio and cash in the bank) the Solicitors want 3% to handle probate but I’m thinking of doing it myself (the beneficiary will recompense me to the same tune as the Solicitor)
I’ve registered the death and started to tell all of the associated institutions. Funeral is under control. I’ve arranged a rci surveyor to value the house as have heard HMrC can be difficult when IHT is at stake. My relatives IFA will help with the valuation and closure of share accounts/funds.
Can anybody with experience or who works in the profession just give me any tips or advice around how complicated it is. I’ve looked at the paperwork on the government website and obviously it seems quite lengthy but not impossible to complete.
I’m a bit scared! Thanks in advance

I am an accountant authorised to do probate work. 3% on a £900k estate is insane. I would probably charge about £3k.
A simple estate is not difficult for a lay person other than the IHT calculation I would say.

@NoddyHoldersCrazee
Thank you, that’s really useful to know. This was the figure given by the Solicitor who dealt with the Will, I obviously need to shop around if we go down that route!

Not an expert here but just to mention that just received probate documents back from my father's estate - less than you mention and not subject to IHR and it has taken just over 8 weeks to receive them back necessitating online chat and a phone call. The staff are helpful and courteous but might need a prod.

@SmithfamilyRobinson thank you, was this doing it yourselves or through a solicitor? I’m planning to give the probate helpline a call on Monday to get some advice from them as I’ve heard they are very helpful.

I did two lots of probate last year, and as long as you are organised it really wasn't that hard at all. Once I had all the figures it took a few hours to do the first one online (below IHT threshold as all going to spouse). The second I had to do all the IHT forms as using all the disregard transfers, and that did take longer, but it wasn't hard, just fiddly to make sure everything was done.
I found the forms and online guidance super helpful

I did my mum's Estate myself. Found it pretty straightforward. If you do it yourself, remember the keep records (spreadsheets) and receipts of any expenses etc, as you go along. If you're fairly organised it's not difficult.

Honestly? With an estate that size even if all exemptions and transferable exemptions are in place and you are not looking at an IHT liability you are at least looking at full IHT reporting.

The IHT400 is not simple if you are not used to completing it. You will need to work out how to report properly for IHT purposes, claim exemptions that may be time limited, potentially pay IHT, calculate and pay income tax on the estate, issue the beneficiary with an R185 form, deal with the sale of transfer of a house, sell or transfer shares, provide a full accounting of everything you have done.

In my professional experience Executors who try and deal with things themselves end up costing the estate more when a solicitor is eventually called in to deal.

By all means shop around or look for someone who will charge an hourly rate for the work rather than a % of the estate value. But don’t deal with it yourself at this level. You are potentially opening yourself up to personal liability by either the beneficiary or HMRC if you get it wrong.

I've dealt with obtaining probate twice, both times included the sale of a property. I found it very straightforward to do and there was lots of advice online. Both were under the IHT threshold, but again, there is lots of support online to help you deal with it.

Tbh @Arewethereyet21 has a good point. The estate I administered was under the IHT threshold, which did make it more straightforward.

Thanks all. There’s lots to think about, I’d quite like to just pay a solicitor or accountant to do the IHT stuff if that’s even possible

I did the IHT 400 for my Dad's estate. It seems complex but the help guide is very good and as long as you are numerate and organised it's fine. However, in your situation, depending on your connection to the beneficiary, it may be more straightforward to hand it over if the estate will pay anyway, save yourself the time and effort.

@MaggieFS thank you, the beneficiary will recompense me what the solicitor would charge if I want to undertake the work which would be handy for me at the moment if the task isn’t too complicated. I’ve emailed a probate solicitor who acts as a consultant to see if she can help with the IHT form just to ensure I get it all correct ( I used to be a PA for one of the big 4 accountants so pretty organised )

My relatives IFA will help with the valuation and closure of share accounts/funds.

Make sure you know what they expect to charge as well.

You can use a solicitor to just do the IHT 400 and/or probate application while you do the initial info gathering and post-probate asset liquidation etc yourself.

Don't forget you'll need to do tax returns for the deceased too if there is interest and dividends.

@StCharlotte Thank you, definitely something I need to check
@SummerSazz Thank you, I hadn’t thought of that.
Really grateful for everyone’s input

I handled the probate or my mother's estate and although daunting at first it was fairly straight forward and all the information and help you need is online or a phone call away. It was a simple estate with regards to only a small number of beneficiaries and despite there being no will it was amicable with all the family in agreement with the distribution. IHT/pensions/savings/house etc involved but there was nothing we couldn't manage ourselves.
I would say go for it.

Also, they've changed the rules around any tax arising on the house sale - this must be paid within 30 days when you come to this part (post probate) unless ownership has been transferred and then the beneficiaries will need to pay within 30 days (if applicable).

@notangelinajolie Thank you, that’s reassuring, the Will is uncomplicated with one beneficiary who is a close family member.
@SummerSazz Thank you, the IFA has said the investments can more than cover the IHT so funds should be available post probate for any tax owing to HMRC not needing the proceeds from the house which will hopefully help 🤞

You could do it all yourself and then send it to a solicitor for checking before it gets sent off.

My DH did my parents' probates, but we sent part of the paperwork off to a specialist accountant to check what was allowable in terms of gifts over the last seven years.

Hi @Thischarmlessgirl - how are you getting on?

I presume you know about the doubling up of the IHT threshold if the person who died was married or in a civil partnership, and also that property left to children (and maybe grandchildren?) also raises the threshold at which IHT becomes payable.. ?

Thank you - NeedtoKnow101 - Sadly the relative didn't have any children and wasn't married so that doesn't apply to us. She did leave 10% to charity though which means a small tax break of 36% instead of 40%. We have had the house valuation/survey through, the investment statements and the bank final closure statements so can begin to apply for Probate now. I have done all of the donkey work but I am paying a specialist to do the HMRC IHT400 as its complicated and I don't want to get it wrong. Apparently probate is taking ages at the moment so think it will be a long waiting game before I can then sell the house etc. Thanks for checking in :-)

My MIL died on 29th May and we are still waiting fir Probate.
Hers was a simple estate too.

Hi @Thischarmlessgirl

We charge £725 + VAT to apply for Probate on your behalf, just to give you a vague idea of how much you could be looking at.

I would generally suggest that you shouldn't hire a lawyer who works on a percentage basis; whilst your relative's Estate might be worth circa £900,000, if they only had a couple of accounts, the shares and a property, that isn't necessarily that much work.

I would look for a lawyer who can give a quote based on the actual accounts of the Estate and work to be carried out.

The Probate Registry is a mess at the moment, with some Grants being issued within 8 weeks of the application and others being received four or more months later. There really is no rhyme or reason!

@MyGodImSoYoung thanks for your advice that’s really useful, the specialist is charging £600 which seems reasonable and far less than the Solicitors who wanted to take a percentage!

@Thischarmlessgirl That sounds much more reasonable to me. Remember that if it turns out that they aren't doing what they should be or don't communicate with you effectively, you can always resume control over the Probate yourself or ask them to pass it to another Firm.

Good luck! x