Case study: Grant of probate service (estate value £147k)

Key Facts:

Rix & Kay Service: Grant only
Value of Estate: £146,800 (under Inheritance Tax threshold)
Make up of Estate: Property, cash in bank accounts, Premium Bonds, limited personal possessions
Beneficiaries: Sister

Background

(In this example we have changed some details to protect confidentiality)

Mr D left a will in which he appointed his sister, Ms E, as his sole executor and sole beneficiary.  Mr D owned a small flat worth £125,000, savings in a bank account of approximately £20,000 and some NS&I Premium Bonds worth £5,000.  Mr D’s funeral cost £2,900 and he had an outstanding credit card bill of £300.  Therefore the total net value of Mr D’s estate was approximately £146,800 which was below the Inheritance Tax threshold of £325,000.

Outline of Rix & Kay’s service

Ms E instructed us on a ‘grant only’ basis.  She had obtained two valuations of the flat and she had written to the bank and NS&I and notified them of the death. During our initial meeting with Ms E she provided us with the original will, the property valuations, correspondence from the bank and NS&I showing date of death balances, a copy of the funeral account and a letter from the credit card company showing the date of death balance.

We obtained the grant of probate.  Official copies of the grant were passed to Ms E and she administered the estate herself, including marketing the flat.  Once a buyer for the flat was found, she instructed our Residential Property Team to handle the sale at fee she agreed with them at that time.

Timing

We obtained the grant of probate for Ms E within two months of her initial meeting with us.

Fees

Our fees and disbursements were as follows:

• Our fees:  £1,000.00
  VAT @ 20%:  £200.00
• Fees for swearing the executor’s oath:  £7.00
• Probate Registry fees to include five copies of the grant:  £157.50
• Official copy of Land Registry title to flat:  £3.00
  VAT @ 20%:  £0.60
• Total:  £1,368.10