Fair and reasonable
In all cases the overall consideration must be that the charges are fair and reasonable having regard to all the circumstances of the matter. The fee structure must be wholly transparent including the amount, when invoices will be rendered and from which source they will be paid.
The fees must be agreed with the executors/administrators and also the residuary beneficiaries, if different. The residuary beneficiaries are those who receive a share of the estate rather than a specific amount or item. They are technically described as an 'entitled third party' under the Solicitors‘ (Non-Contentious Business) Remuneration Order 2009).
Case law states that a value charge, based of the gross or net value of the estate, can either be made in addition to an hourly rate or it can be included in the hourly rate, but the value element must not be reflected in both charges.
Best practice?
The Law Society best practice suggests, subject to discretion and circumstances, that charges may consist of two elements:
a) Hourly rate
This should be an inclusive figure incorporating the solicitor's expense rate and any appropriate care and conduct uplift.
b) Value element
Account may be taken of the value of the assets in the estate. In calculating the value element of the charge, the following approach may be adopted:
It is usual to divide the estate into two parts:
i) The deceased's residence; The value of the deceased's home, or their share.
ii) Value of rest of the estate
Apply an appropriate percentage:
Solicitor not acting as an executor; value of gross estate less residence 1% and value of residence 0.5%
Solicitor acting as sole executor or joint executor with another person; value of gross estate less residence 1.5% and value of residence 0.75%
How we charge
We will meet with you and establish the work that needs to be done and agree a fixed fee with you; simple. Please call me for a fixed fee.
What if I feel that I have been over-charged?
There are strict timeframes for challenging invoices. Please call me on to see if I can help.