Probate is the legal right to deal with someone’s property, money and possessions (their ‘estate’) when they die. You should not make any financial plans or put property on the market until you have probate.

Please refer to: https://www.gov.uk/applying-for-probate.

 To enable a basis/starting point to budget for your future probate and related costs, 1Legacy provides a guideline of costs that can be adjusted to suit your requirements and situation to enable you to determine an estimate of these future costs and compare this to your Liquidity. 

The guideline costs concerning Probate and other related costs are based on the following:

• Probate Fee  – £2,500 (average fee charged by service providers and third parties) (based on a £1m estate)
  
  
• Executor Fee – £5,000 (average fee charged by service providers for executorship and administration) (based on a £1m estate)
  
  
• Funeral Costs.  – £3,500 (burial) or £2,000 (cremation) –  (average fee charged by various service providers
  
  
• Property Conveyancing Fees – £ 2,500 (based on a £1m property)
  
  
• Inheritance Tax (“IHT”) – £ 270,000 (based on a cash estate value of £1m for a single person)(deductions will apply and reduce the IHT for other type assets and marital status)(The vast majority of people don’t have to pay IHT if they leave everything to their spouse; also the first £325,000 is an IHT free allowance and passing on your home can boost your IHT free allowance to £500,000; any unused IHT allowance passes to your spouse; further ways to reduce your IHT bill (consult an expert)) 
  
  
• Trust setup Fee – £ 1,500 (average fee charged by service providers)
  
  
• Family cash flow support:  £15,000 (£2,500 pm for six months) or Household Expenses: £18,000 (£3,000 pm for six months)

An executor is named in your will as responsible for dealing with your estate. The executor may have to apply for a particular legal authority before they can deal with your estate. This is called probate.

An executor is legally responsible for carrying out the instructions in your will and handling your estate. Your ‘estate’ is everything you own (Assets and Liabilities, etc) – your money, property, investments, etc.

You must name at least one executor and can appoint up to 4 executors so that the responsibility is shared. If there are multiple executors, all decisions must be made jointly. It’s advisable to appoint at least two executors in case one dies or cannot carry out their duties. 

Being an executor can be challenging. It can take up a lot of time and energy, and it might be the last thing someone feels like doing when they’re grieving. So you must think carefully about who you choose; when you appoint someone, you must explain what’s involved and ensure they’re willing to take on the role’s responsibility.

1Legacy’s products and services assist executors in their roles and responsibilities.

If someone’s asked you to be an executor of their estate, think carefully before you agree to take on the responsibility because stepping down from the role is tricky. For example, if the person’s died and you’ve already started to deal with the estate, you can’t step down unless you have a good reason, such as ill health or a family emergency.

If you don’t have anyone you feel would be suitable, or your family and friends don’t want to take on the role, you could appoint a professional executor, such as a solicitor or an accountant. This can be especially useful if your estate is particularly large or complicated. A professional executor will charge for their services, which will be paid out of your estate. Refer to the Probate and Other Costs.

In a trust, assets are managed by one person or people (the trustee) to benefit another person or people (the beneficiary). The person providing the assets is called the settlor.

Different kinds of assets can be put in trust, including:

• Cash
• Property
• Shares
• Land

Trusts are set up for several reasons, including:

• to control and protect family assets
• when a beneficiary is too young to handle their affairs
  
• when someone cannot handle their affairs because they’re incapacitated
  
• to pass on assets while a settlor is still alive
  
• to pass on assets when a settlor dies (a ‘will trust’)
  
• under the rules of inheritance, if someone dies without a will (in England and Wales)

Refer: https://www.lawsociety.org.uk/public/for-public-visitors/common-legal-issues/trusts