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Are you overpaying the executor of your will?

Emma Myers
Written By:
Posted:
12/03/2014
Updated:
12/03/2014

Hiring a professional to be the executor of your will has its advantages, but be careful not to overpay for their services.

Selecting a professional such as a solicitor or accountant as an executor of your will is a popular way to navigate the complexities of probate, but you could easily end up overpaying for their services thanks to hidden or disproportionate costs.

As well as a percentage fee for acting as executor, professionals can also charge an hourly fee, meaning that the average UK inheritance of £180,000 could end up reduced by thousands of pounds.

The higher the total value of the estate, the higher the fees, meaning high-net-worth individuals are particularly affected.

While you would expect to pay a significant sum for this type of service, you might be surprised to learn how high costs can rise. It is also important to note that once a person has passed away, an appointed professional is under no obligation to renounce their role as executor – however much the next of kin would like them to.

A better option is to choose a professional to support the process rather than control it outright.

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Appointing a trusted friend or family member as executor will enable them to maintain control over administration and costs.

I would then recommend the chosen executor seek assistance from a professional to guide them through the process. This safeguards the executor and ensures that the estate is dealt with correctly, but also allows the executor to keep a tight control on costs.

When choosing a professional – whether to assist in the process or to take full control – follow these tips to ensure you avoid overpaying:

1) Always agree a fixed price up front – This will help you to avoid any nasty surprises later if things become more complicated than you expect. If you commit to paying an hourly fee, costs can end up higher than you expect.

2) Shop around to find the right deal – Remember to strike the right balance between price and getting the quality of service you require. Don’t forget: “cheapest” doesn’t always mean “best value”, especially if someone is quoting a low hourly cost but refuses to agree to a fixed price up front.

3) Remember there are usually two options for probate – full administration where the professional will deal with everything on your behalf, and grant only, where the professional prepares the legal paperwork for you only.

4) Ask lots of questions – Ask as many questions as you need to feel confident in what you are signing. If you have agreed a fixed fee up front, you should not be charged extra to ask additional questions.

5) Check credentials – Choose a professional who is regulated by a relevant governing body and who offers insurance should something go wrong, such as an incorrectly drafted will accidentally missing out a beneficiary. Any private practice solicitor working must have a certificate from the SRA (Solicitors Regulation Authority), an independent regulator which sets out all the rules solicitors must follow.

6) Don’t forget to tell your next of kin – Whether you intend to use a professional or a friend or family member, talk it through with your next of kin so they fully understand your reasoning as this will help to avoid potential disputes later on.

Emma Myers is head of wills, probate and lifetime planning at Saga Legal Solutions