Blog - Emyr Pierce

Aug 31

Fee Estimates- Uncontested probate cases where all assets are in the UK

Applying for the grant collecting and distributing assets

We anticipate this will involve between 5 and 12 hours work.

Managing Partner’s hourly rate: £195 plus VAT

Senior Associate Solicitor’s hourly rate: £175 plus VAT

Probate Assistant hourly rate: £130 plus VAT

Total costs estimated range between £875 – £2,100 plus VAT

The exact cost will depend on the individual circumstances of the matter. For example, if there is one beneficiary and no property, costs will be at the lower end of the range. If there are multiple beneficiaries, a property and multiple bank accounts, costs will be at the higher end.

We would be happy to handle the full process for you. This general estimate provided above is for estates where:

There is a valid will
There is no more than one property
There are no more than 5 bank or building society accounts
There are no other intangible assets
There are up to 6 beneficiaries based in the UK
There are no disputes between beneficiaries on division of assets. If disputes arise this is likely to lead to an increase in costs
There is no inheritance tax payable and the executors do not need to submit a full account to HMRC
There are no claims made against the estate

Disbursements that are typically incurred are:

Probate application fee of £155.00 plus £1.00 for each sealed copy of the grant
Electronic ID check of £3.96 per person
Office Copy Entries from the Land Registry of £6.00 where there is a property
£7.00 swearing of the oak (per executor)
Bankruptcy-only Land Charges Department searches (£2.00 per beneficiary)
£ x post The London gazette – protects against unexpected claims from unknown creditors
£ x Post in a local newspaper – this also helps to protect against unexpected claims

Disbursements are costs related to your matter that are payable to third parties, such as court fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.

Potential additional costs

If there is no will or the estate consists of any share holdings (stocks and bonds) there is likely to be additional costs that could range significantly depending on the estate and how it is to be dealt with. We can give you a more accurate quote once we have more information.
Certainty Will Search of £95.00 plus VAT if no Will can be located or a later Will is suspected.
If any additional copies of the grant are required, they will cost £1.50 per copy (one per asset usually).
Dealing with the sale or transfer of ownership of any property in the estate is not included.

How long will this take?

On average, estates that fall within this range are dealt with within 6-8 months. Typically, obtaining the grant of probate takes 3-6 months. Collecting assets then follows. Once this has been done, and any debts paid, and Estate Accounts prepared, we can distribute the assets, which normally takes 2 – 4 weeks.

For Estates where Inheritance Tax is likely to be payable or a full Inheritance Account may be required costs are more likely in the region of £3,000 to £8,000 plus VAT depending on the complexity of the estate.

It is difficult to provide a ‘standard’ quote for the type of work as there can be many variations of both circumstances and executor of assets involved.

It is always advisable to contact us first discuss in detail your requirements and we are happy to provide you with guidance and an indication of the overall work and anticipated timescale to properly manage your expectations.

We are happy to provide more detailed quotes once in possession of the full details and the circumstances of your case.

Our main aim is to assist you as sensitively and efficiently as possible at this traumatic and upsetting time.

Please contact us directly where we can provide more accurate costs information based on the specific circumstances and your requirements.

The time taken to collect the assets will depend on how easy it is to release the assets. The main asset is usually a property which can take more time to sell. In other cases bank and building society accounts can be closed relatively quickly.

Jul 20

Welsh Government introduces tax holiday for Welsh homebuyers

New measures set out by the Welsh Government regarding land transaction tax in Wales will come into effect on July 27.

The Land Transaction Tax replaced stamp duty in Wales in 2018 and is usually applied to homes valued at £180,000 or above. Under the new measures announced by the Welsh Government, the starting threshold for the tax will increase from £180,000 to £250,000, meaning around 80% of homebuyers will not pay any tax.

The tax holiday, a temporary measure which lasts until March 31 next year, primarily benefits first-time buyers and home owners buying a new property as their main residence and does not apply to landlords who buy-to-let or home owners looking to purchase a second home.

Combined with the partial reopening of the housing market in Wales, the measures are likely to encourage buyers to move forward with their purchases. Potential buyers can currently view and move into vacant residential properties, and valuations of occupied properties can be valued and inspected in line with social distancing guidelines, ahead of completing the sale.

For those in the process of buying a house, it is worth speaking with a conveyancer about exchanging contracts or completing purchases after July 27 to benefit from the tax holiday, though considerations should be made about arrangements that may be impacted upon including removals and property chains. Unfortunately, purchases completed before this date will not be eligible for the tax reduction.

The announcement from the Welsh Government follows the Chancellor’s Economic Statement on July 7 which set out changes in Stamp Duty for properties in England and Northern Ireland. Effective from July 8, residential purchasers buying property under £500,000 in these countries will not have to pay stamp duty until the end of March.

Meanwhile in Scotland, in a similar move to Wales, the starting threshold for land and buildings transaction tax has also increased to £250,000. However, the changes in Scotland are being implemented earlier, with homebuyers able to benefit from the tax reduction from July 15.

The Residential Property team at Emyr Pierce Solicitors have expert knowledge and experience of all aspects of the residential market. From queries about land transaction tax to navigating through the complexities of a property transaction, Emyr Pierce Solicitors can advise and guide you through a variety of residential property and conveyancing issues.

Mar 20

Supporting our clients through COVID-19

We wish to reassure our clients, professional colleagues and suppliers, that we aim to remain fully operational during the current Covid-19 pandemic.

It would be of great assistance if all correspondence and documentation, other than original documents, are sent to us electronically by e-mail to assist our fee earners who may have to progress cases by working remotely, if necessary.

Original documents should still be sent to us by first class post.

We regret that we are currently unable to offer any new, or satisfy any pre-arranged, personal appointments in accordance with Government guidelines, in order to protect the welfare of our clients and staff, but remain available to you by telephone or email.

We thank you for your understanding and would appreciate your patience when awaiting a response to your enquiries due to the possibility of our lawyers working remotely from the office.

If you need to contact us, please do not hesitate to do so by telephone on 02920 616002 or Email: law@emyrpierce.co.uk

Should you have any concerns with regard to how your transaction is being handled, please contact our Practice Manager, Laura Pierceat laurap@emyrpierce.co.uk

Nov 13

We are recruiting: Legal Assistant

Legal Assistant

Full time
Salary – negotiable
Hours – 9-5.30pm
Start date – immediate
Location – Rhiwbina, Cardiff

Summary

Legal Assistant to a Probate department required for busy law firm in Rhiwbina, Cardiff.

Working as a Legal Assistant, you will become integrated within a hardworking and professional team, with the aim of providing exceptional support and assistance within a busy office environment.

Duties and Responsibilities

Day to day call handling.
Prepare correspondence and documents using word processing.
Organising and scheduling documentation.
Assisting with drafting and preparing Lasting Power of Attorney documentation.
Administer filing systems which will include daily filing and the opening, closing, storage and retrieval of client files in accordance with the detailed procedures contained in the office manual.
Prepare mail and enclosures for despatch.
Correspondence allocation.
To make appointments, arrange meetings and maintain an up-to-date diary.
To attend clients both in person and on the telephone.
Relief reception cover.
General Support to Fee Earners and colleagues in all departments.

Essential criteria

Effective time management and ability to maintain accurate records
Excellent written and verbal communication skills
Excellent IT skills, including Excel, Word and other common applications
Self-motivated, highly organised, able to demonstrate problem solving skills and a good team player
Flexibility and able to take on additional roles as and when required
Positive, can do attitude, problem solver
Willing to learn and use new software platforms
Willingness to work as part of a local office Team
Ability to act on own initiative and action clear instructions
High Customer Service principles to reflect the high service standards of the Firm.
A full, clean UK driving license

To be considered for this role, please email a copy of your CV and covering letter to: emyrp@emyrpierce.co.uk

Nov 23

Budget reaction

Responding to Philip Hammond’s budget, Emyr Pierce, Managing Director of Emyr Pierce Solicitors, said: “The scrapping of Stamp Duty for first time buyers will clearly help all those getting on the property ladder for the first time but there will be major savings in London and South East where average prices will provide a £5000 saving on properties of £300,000 and above.

In Wales, subject to further deliberations from Welsh Government, this will currently only be available until 1^st April 2018.

In Wales, if you base the savings on the average first time buyers’ purchases (between £150K and £200K) the saving will be £500 – £1500 respectively.

This will certainly provide a cash “bonus” (rather than a “windfall”) on purchasing for all first time buyers buying homes over £125K (of which there is a lower percentage in Wales than in the UK as a whole) particularly for those in the process of buying who have set aside the stamp duty which will now no longer be payable.

It is also worth noting that the Independent Office for Budget Responsibility claims that the main effect of the stamp duty announcement will be to raise house prices by 0.3%!!!

Savings

Price Saving

£150K £500

£180K £1200

£200K £1500

£250K £2500

£300K £5000

Jul 27

Leasehold Law Review welcomed, but developers will find a way around it

With the news that the Government is planning to scrap ‘unfair’ leaseholds on new build houses in England, Emyr Pierce, Managing Partner at Emyr Pierce Solicitors, thinks this could have major repercussions for Wales where there are significantly more leasehold houses.

Emyr said, “In England the existence of leasehold houses is a relatively rare commodity whereas in Wales, historically, it has been more commonplace.

“For example, a large part of Cardiff at one time consisted of leasehold houses let on 99 year leases at a nominal ground rent as the land was owned by wealthy land owners such as the Marquess of Bute and Earl of Plymouth. As a result, the purchase of freehold interests in leasehold houses is something with which Welsh lawyers are more than familiar.

“It seems that politicians in England are focusing on the fact that developers nationally are looking to make an even larger profit on the sale of properties by selling them as leasehold and then selling their freehold portfolios in their developments to investors.

“Investors will buy freehold portfolios as they can prove very profitable initially, by charging for consent to carry out alterations which in turn can result in a higher rent or ultimately, charging for either extending the lease term or simply selling the freehold interest of each individual house.

“The mechanism for selling freehold interests in leasehold properties has been governed by the Leasehold Reform Act since 1967 and, in its amended form, enables an owner of a leasehold house the right to purchase the freehold interest after owning the property for two years (no longer having to actually occupy the property for this period) provided the property meets certain valuation criteria set out by the Act. The method of calculation is laid down by statute and the ultimate remedy for unhappy purchasers is to refer the matter to the Lands Tribunal.

“The news this week appears to focus on the fact that developers are now looking to add to their source of huge profit by selling new plots to unsuspecting purchasers as leasehold, and not freehold, without fully explaining what this entails.

“Ultimately it is the buyer’s lawyer’s responsibility to explain to purchasers the difference between freehold and leasehold and the possible cost implications of purchasing a leasehold property.

“This attempt to outlaw the sale of new build properties as leasehold rather than freehold is indeed welcomed as the only people losing out would be the developers. It would remove the opportunity to make more money at the expense of the home owner in the future. However, it will not control the prices at which these new build houses are sold, so the developer may respond to such legislation by simply adding on an additional figure to the asking price to compensate them for any sum that they would otherwise have obtained from selling the freehold interest to an investor. The consumer would therefore not necessarily be protected, contrary to the intention behind any such legislation.”

Emyr Pierce is Managing Director of Emyr Pierce Solicitors in Rhiwbina, Cardiff, specialising in Domestic and Commercial Property.

For an immediate quotation or discuss your requirements with a specialist, please telephone us on 029 20 616002 Monday to Friday 9am to 6pm and on Saturday 10am to 4pm or visit www.emyrpierce.co.uk or email us at law@emyrpierce.co.uk. For more information on our commercial property expertise, please visit http://www.emyrpierce.co.uk/commercial-property.

Apr 25

“Stealth” death tax scrapped by Government

With just one week to go until the Government’s proposed probate fee increase was due to be introduced, it has been scrapped. Whilst many people will no doubt breathe a sigh of relief, it is not yet clear whether the Government will revisit these proposals if re-elected. Speaking for myself and my colleagues, we had been subjected to additional pressure as a result of such proposals as clients expected us to submit applications before the end of this month in order to avoid paying substantially increased fees.

What are probate fees?

Probate fees are the fees payable to the Probate Registry on application for Grants of Probate when someone dies. The Grant is the legal authority given to executors or administrators of the Estate of the deceased to distribute and administer their property, savings and investments.

What was the extent of the proposed Probate fee increase?

The Budget originally put forward proposals to introduce substantial hikes in probate fees payable from May of this year. Currently, the charges are £215 for those who apply personally, or £155 if the application is made through a solicitor. The new ruling would have resulted in an estimated 58% of Estates worth less than £50,000 incurring no fees at all, an estimated 23% of Estates worth between £50,000 and £300,000 paying £300 and an estimated 11% of Estates valued between £300,000 and £500,000 paying £1,000! For an estimated 6% of Estates worth between £500,000 and £1 million, they would have seen their fee rise to £4,000, around 1% of Estates worth between £1 million and £1.6 million would pay £8,000, and 0.3% worth between £1.6 million and £2 million would pay £12,000 and finally, an estimated 0.5% of the Estates in this country, worth over £2 million, would need to pay a whopping £20,000.

The Government’s argument was that roughly 94% of Estates would have paid no more than £1,000 in Probate fees whereas those Estates over £500,000 would pay substantially more.

Critics claimed these fees to be more representative of a “Stealth Tax” as the Probate fee is payable in addition to any Inheritance Tax already payable, at a massive 40%, on the value of Estates worth more than £325,000.

The Government claimed the increases were necessary to ensure that HM Courts and Tribunal Service (HMCTS) is funded adequately now and in the future, and argues that despite the concerns expressed, these increases are necessary to continue to provide “access to justice”. The main problem is, of course, that a bereaved family does not regard a fee payable to obtain a Grant of Probate as necessarily providing “access to justice” and that, unlike a Court fee, which is often calculated on the value of the dispute in hand, this is an administrative fee payable in order to process essential paperwork. It is for this reason that these fees have remained fixed for many years and, whilst currently representing good value for money, and arguably due for review, the extent of the increases previously proposed resulted in allegations that it no longer represents a “fee” but a “Stealth Tax” representative of a further 1% charge on all Estates valued over £50,000.

We will have to wait and see if the Government revisits this issue or whether they have recognised that this may well represent a huge vote loser!

Emyr Pierce

Managing Partner

Emyr Pierce Solicitors

1 Heol Y Deri, Rhiwbina, Cardiff CF14 6HA

Apr 12

Lasting Powers of Attorney (LPA)

Increased Awareness of LPAs

Ten years after their introduction as replacements for the Enduring Power of Attorney, the Public’s awareness of the implication, benefits and value of having Lasting Powers of Attorney has increased substantially during the past few years.

Mar 22

“Stealth” death tax expected to raise £1.5billion from bereaved families

It was inevitable that sooner or later the Government would turn its attention to raising greater revenue from probate fees – these are the fees payable to the Probate Registry on application for grants of probate when someone dies. The grant is the legal authority given to executors or administrators of the Estate of the deceased to distribute and administer their property, savings and investments.

The recent Budget put forward proposals to introduce substantial hikes in probate fees payable from May of this year. Prior to this date, the long-established charges were £215 for those who applied personally, or £155 if application is made through a solicitor. The new ruling will result in an estimated 58% of Estates worth less than £50,000 incurring no fees at all, an estimated 23% of Estates worth between £50,000 and £300,000 paying £300 and an estimated 11% of Estates between £300,000 and £500,000 paying £1,000. For an estimated 6% of Estates worth between £500,000 and £1 million, they will see their fee rise to £4,000, around 1% of Estates between £1 million and £1.6 million will pay £8,000, 0.3% between £1.6 million to £2 million will need to pay £12,000 and an estimated 0.5% of the Estates in this country worth over £2 million, will need to pay a whopping £20,000.

Essentially, therefore, the Government argues that roughly 94% of Estates will pay no more than £1,000 in Probate fees whereas those Estates over £500,000 will pay substantially more.

Critics claim these fees to be more representative of a “Stealth Tax” as this Probate fee is payable in addition to any Inheritance Tax already payable, at a massive 40%, on Estates worth more than £325,000.

The Government claims these increases are necessary to ensure that HM Courts and Tribunal Service (HMCTS) is funded adequately now and in the future, and argues that despite the concerns expressed, these increases are necessary to continue to provide “access to justice”. The main problem is, of course, that a bereaved family does not regard a fee payable to obtain a Grant of Probate as necessarily providing “access to justice” and that, unlike a court fee which is often calculated on the value of the dispute in hand, this is an administrative fee payable in order to process essential paperwork. It is for this reason that these fees have remained fixed for many years and, whilst currently representing good value for money and arguably due for review, the extent of the increases now proposed has resulted in allegations that it no longer represents a “fee” but a “Stealth Tax” representative of a further 1% charge on all Estates valued over £50,000.

Mar 21

Having a Will, is the Way

Everyone chooses to try and ignore the inevitable – death. As they say, very few things are guaranteed and, sadly, death is one of those.

It is however essential that you take time to seek advice and consider the needs of your loved ones in the event of you no longer being around to care for them. Without a Will you are leaving the ultimate destiny of your assets to chance or the Rules operated by the Common Law – and it’s not just about money or assets. Who cares for any of your minor children under the age of 18 should also be a major consideration.

Just some critical reasons why a Will may be essential:

Don’t assume your partner will get everything – Even if you are married, or in a civil partnership, your entire estate will not automatically pass to your spouse. If you die without leaving a valid Will, your assets will be distributed in accordance with the ‘Intestacy Rules’, which is the Common Law’s attempt to anticipate what the intentions of the average person would have been had he or she made a Will. What these Rules anticipate, and what you may actually want, could, however, be entirely different.
If you’re not married, your partner is not entitled to anything as of right – Under the Intestacy Rules, unmarried, cohabiting, partners will not automatically be entitled to anything.
Think of the children – Perhaps one of the greatest reasons for making a Will is the need to appoint Guardians for your minor children. Few want to consider the possibility of both parents dying. In such circumstances the existence of a Will can make sure that your children are brought up by individuals of your choice who share your values and beliefs. By making a Will you can appoint a trusted friend or relative as Guardian of your children to look after them and bring them up as you would have wished.
Look after other loved ones – You may be responsible for looking after other family members such as an elderly or vulnerable parent or sibling. Your Will can stipulate how they will be cared for in your absence and you can make financial provision for them if necessary.
Non-relatives will not benefit unless you say so – If there is a special person in your life, and who may not necessarily be related, and you want to leave something to them, this can only be guaranteed by making a Will.
Save on Inheritance Tax – Seeking expert advice on drafting a Will could save you tens of thousands of pounds in unnecessary Inheritance Tax payments.
Do not leave everything to the other – It is increasingly important to consider the implications of leaving everything to the other spouse or partner, or to allow your assets to pass automatically by survivorship to your spouse or partner. You can make provisions in your Will for your assets to be placed in Trust for your children avoiding the risk of these passing to unsuspected third parties – such as future spouses or, indeed, the children of future spouses, should you be the first to go.
Your final send off – In your Will, you can specify whether you wish to be cremated or buried, and even give directions about your funeral; where you want it, or any instructions for any donations.

When writing a Will, it’s important to seek professional advice, not only to help save on Inheritance Tax and ensure the Will is legally binding, but also to significantly reduce the likelihood of someone excluded from the Will making a successful claim against it. A large increase in claims against Estates under the Inheritance (Provision for Family and Dependents) Act 1975 has seen close relatives, who may have been excluded from the Will, making successful claims for financial provision against the deceased’s Estate.

Making a Will needn’t be time consuming and can actually be fun to do. Its nominal cost is insignificant in comparison with the cost, expense and distress that can be caused to those left behind when there is no Will, or insufficient thought has been given to whom should benefit in the event of your death.

Emyr Pierce Solicitors’ sensitive staff will talk you through everything and ensure your instructions are clear and exactly what you want.

For an immediate quotation or discuss your concerns with a specialist, please telephone us on 029 20 616002 Monday to Friday 9am to 6pm and on Saturday 10am to 4pm or visit www.emyrpierce.co.uk or email us at law@emyrpierce.co.uk.