Estate administration from only £1,500

Top questions about estate administration

What is the difference between probate and estate administration?

Probate (short for ‘a grant of probate’) is a legal document that shows banks, the Land Registry and other organisations that you have the authority to deal with someone’s estate. Estate administration, on the other hand, is the process of dealing with that estate, including everything from calculating the estate’s value, to applying for probate, to distributing assets to beneficiaries.

You can find out more about the difference between probate and estate administration here.

Who can administer an estate?

The executors named in a will can administer an estate. In cases where there isn’t a will, the estate is usually administered by the person who stands to inherit the most under the rules of intestacy.

How do you administer an estate?

The first part of administering an estate is calculating the value of any property, assets and debts. You then need to apply for a grant of probate (or grant of letters of administration if there isn’t a will). Once the grant has been approved by the probate registry, debts and taxes need to be paid, then the assets can be gathered together and distributed to beneficiaries.

How long does it take to administer an estate?

It takes 3-12 months to administer an estate and sort out probate. If there’s no property to deal with and the estate is fairly simple, it’ll likely be closer to three months. But if there are multiple properties and accounts to sort out, it could take a year or more until everything has been distributed to beneficiaries.

You can find out more about how long probate takes here.

How much does estate administration cost?

Estate administration services can cost anywhere from £1,500 to over £20,000 in more complex cases. Fixed-price services tend to be the cheapest, and they always make it clear how much you’ll have to pay up front. Some solicitors charge an hourly rate or percentage and, while this often looks quite reasonable on paper, it usually works out more expensive in the long run.

Do I need a lawyer for estate administration?

You don’t always need a lawyer or solicitor for estate administration. If the estate is only made up of a few bank accounts and some savings, there’s a good chance that you can take care of this yourself. However, if there are properties to sell, debts to track down and various other assets to pool together, you could save a lot of time and stress by having a professional handle this for you.

How much inheritance tax needs to be paid when administering an estate?

The amount of inheritance tax that needs to be paid depends on the total value of the estate.

The inheritance tax threshold for 2020/21 is £325,000, so anything over that amount is usually liable to 40% tax. However, the inheritance tax threshold can be increased to £650,000 in some cases, and the tax rate can also be reduced to 36% when a certain portion of the estate is left to charity.

You can find out more about inheritance tax rates here.