When it comes to Probate work, a lot of it is very predictable.
Once the assets and liabilities have been established, papers collated, it’s clear to a specialist what needs to be done. If there’s a Will, making it clear who’s in charge, and to whom the assets will be paid, so much the better. Even more straightforward.
Despite the systematic and logical nature of Probate work, many lawyers have for many years, chosen to charge clients in a way which rewards said lawyer for the value of the estate, in addition to the work involved.
To give you an idea of what this means in practice, if an estate value is a million pounds, a standard way of charging an estate has been to charge a percentage of the estate, say 1%. This means the lawyer may get £10,000 before they even write a letter. Then on top of that value charge, they receive an hourly charge, which is often a reduced hourly charge, say £220, depending on the seniority of the lawyer involved.
There may be a “cap” to a maximum of say 3%. This means that on an estate worth £1M, a charge of £30,000 is quite easily possible.
What are the alternatives?
Well, asking the question, is a good place to start, and many people don’t even ask the question, mainly because they don’t realise they can or should.
One negotiating option, is to reduce the value element on assets that require very little work – the property worth £5ook for example. Maybe you can agree half a percent on that particular asset.
Maybe you can get the hourly charge reduced, either because you can have a more junior person deal with the donkey work, or because you asked, and the lawyer is willing to reduce their normal hourly charge.
Another option is to remove the value element completely, but then the hourly charge is likely to be enhanced (translate very expensive), to counter what would have been profitable on the value element, which is now lost.
The best way, in my opinion, to agree a price for straightforward estate administration, is to ask a professional who specialises, to look at everything that needs to be done, think about it, and give a fixed fee that you can rely on.
Fixed fee Probate is becoming more popular, for clients who know that it can be agreed.
It’s perfectly reasonable for your lawyer to take all the details and then have a think about it. Sometimes they may even wish to consider the matter overnight. If you’re charged with sorting an estate out, dealing with the estate administration from start to finish, you should be mindful of your time, but also be mindful of the fees involved if you choose to delegate the work to a professional.
Where someone’s affairs are straightforward, the fee should be fixed. You know and I know, it makes sense.
If you want to have a chat with Jane or someone in her team, get in touch on 01727 840 240 and we’ll happily give you an idea of costs, as long as you give us an idea of what there is to sort out.