Serving as an executor of a will is an unpaid responsibility. Naturally, when someone dies, executors often worry about the expenses involved in administering an estate and whether probate fees can be paid from the estate.
In this article, we’ll address this question directly, answering whether probate fees and other expenses can be paid from the estate.
Table of Contents
- What is probate?
- How much does probate cost?
- Can probate fees be paid from the estate?
- What expenses are recoverable during the probate process?
- How are probate fees paid from the estate funds?
- What fees can executors charge?
- What is a charging clause in a will?
- Who can dispute probate administration expenses?
- When can the executor pay beneficiaries?
- How can Lawhive help?
What is probate?
Probate, referred to as the Grant of Probate or Grant of Representation in England and Wales, or Confirmation in Scotland, is a legal document obtained by the executor to grant them the authority to manage the deceased individual's estate.
In cases where the deceased did not leave a Will, known as dying intestate, the role is assumed by the Administrator, and probate is termed as Letters of Administration.
Whether the deceased had a Will or not, the Executor or Administrator must assess whether probate is necessary. Generally, probate becomes necessary if the deceased solely owned property and/or had a certain sum of money in the bank.
How much does probate cost?
The fee for obtaining a Grant of Probate is £273 for most applications, except for estates valued at £5,000 or less, where no fee is applicable.
Executors often instruct professionals to handle probate applications, which may incur additional fees.
At Lawhive, our network of expert probate solicitors can provide support based on your needs, ranging from obtaining the Grant of Probate to full estate administration support.
Contact us today for a free quote.
Can probate fees be paid from the estate?
Yes, probate fees can be paid from the estate funds. Executors can pay the probate application fee online or by cheque and later seek reimbursement from the estate.
Similarly, if professionals are engaged to assist the executor, such as solicitors, their fees can be recovered from the estate.
What expenses are recoverable during the probate process?
Expenses that are recoverable during probate include:
Expenses related to the funeral, including funeral home services, burial or cremation fees, and memorial arrangements.
Fees associated with clearing out the deceased's property, such as hiring a house clearance company or cleaning services.
Reasonable travel costs incurred while carrying out Estate administration duties, such as attending meetings or property viewings.
How are probate fees paid from the estate funds?
When handling probate, the executor or administrator is responsible for managing the affairs, but they are typically not personally liable for covering costs.
They may access funds from the estate to cover probate fees and expenses using:
The deceased’s bank account
An ‘Executor’s Account’ set up in the estate’s name
Reimbursement from estate funds once they become available.
It’s important to ensure that all expenses claimed are reasonable and directly related to the administration of the estate.
What fees can executors charge?
Family members or friends acting as executors generally can't charge for their time spent administering the estate.
Professionals like solicitors specialising in estate administration can charge for their time managing the estate, but only if the will includes a 'charging clause' or if they obtain approval from co-executors or beneficiaries.
What is a charging clause in a will?
A charging clause in a will grants the executor the authority to charge for the time spent administering the estate. While most clauses allow professional Executors to charge fees, some may also permit non-professional Executors to do so, though this is rare.
Who can dispute probate administration expenses?
Residuary beneficiaries, those entitled to inherit what remains after debts and gifts are paid, have the right to see Estate Accounts.
If they believe expenses claimed by the Executor/Administrator are unreasonable, they can request to review the accounts.
If found unreasonable, legal action may be pursued against the Executor/Administrator for breaching their duty of care to act in the Beneficiaries' best interests.
When can the executor pay beneficiaries?
Beneficiaries should typically be paid only after all debts and liabilities of the estate are settled. Although there are exceptions, the distribution of the estate should usually occur after the Executor obtains a Grant of Probate.
How can Lawhive help?
Probate fees and estate administration can be daunting for executors and administrators alike.
At Lawhive, our network of expert probate lawyers is on hand to provide clarity and support during this process, whether you need assistance obtaining a Grant of Probate or require full estate administration support.
To get started, contact our Legal Assessment Specialists today for a free case evaluation and quote.