Providing Accurate Estimates in Contentious Probate Cases
The importance of providing accurate estimates in respect of contentious probate costs cannot be overstated. The vast majority of challenges to solicitors bills will be a result of an unexpected shock suffered by the beneficiaries. There is nothing worse than being provided a quote or an estimate for services and to then receive a bill of costs for a significantly higher amount than you were expecting.
That is why it is important to ensure that you get estimates right at the start of a matter and to ensure that this is communicated to all interested parties. If all the parties are aware of the likely costs to be incurred, and you end up raising a bill within that estimate, then it is highly unlikely that an interested party is going to challenge those costs, let alone be successful in bringing such a challenge.
Providing a clear and accurate estimate will ensure that all the parties have a good understanding of what is likely to be deducted from the estate and how much of any residuary they may be entitled to.
There is nothing more likely to rile up a beneficiary than to advise that they will be likely to get £X inheritance at the start only to have to come back when finalising the estate accounts to advise that they are now going to be receiving a significantly reduced £Y. The first port of call that they will have to try and get close to receiving the original £X will be to challenge the Executor’s solicitors’ costs. For every £1 they reduce then it is an extra £1 in the residuary pot.
Kenig v Thomson Snell & Passmore LLP [2024] EWCA Civ 15
This was certainly the case in the key case of Kenig v Thomson Snell & Passmore LLP [2024] EWCA Civ 15 where the Court found that incurring costs of 4-5 times the originally estimated amount, without providing sufficient updates that such estimate had been exceeded, was grounds to make an Order under the Solicitors Act for the Solicitors’ bills to be assessed.
Therefore, it is important to make sure that you are providing as realistic estimates at the start of the claim as possible. It is always best to try and err on the side of caution when considering the lengthy of time it will likely take to administer an estate. Furthermore, ensure that you are applying the most up to date hourly rates so that your calculations are accurate when reaching a final figure. It is always useful to also include an element of buffer to reflect the unexpected correspondence or work that is required.
Key factors to consider when providing estimates in contentious probate cases
When contemplating the time and work required it can be useful if you consider some of the key factors such as:
- The size of the estate;
- The number of beneficiaries;
- The number of properties or large value assets;
- Whether properties or assets held in foreign jurisdictions;
- Family Dynamics; and,
- If the Will provides for charitable donations.
It is appreciated that there is a tendency to avoid providing an an ‘over the top’ estimate at the beginning so as to not raise alarm bells at the outset. There is also usually a presumption that everything will run smoothly and efficiently which may not be the case for all matters.
However, if there is a pressure to provide a lower reasonable estimate then it would be strongly advised that the scope of instructions is clearly defined and restricted to the anticipated level of work. This is because, if something unexpected that falls out of scope occurs, you will then have something in writing to refer back to if the original estimate is exceeded and the main cause is because there was additional work undertaken that fell outside of the originally provided scope of work.
Further Assistance with Contentious Probate Costs?
Kris Kilsby is a Costs Lawyer at Paramount Legal Costs and a Council member of the Association of Costs Lawyers. For any further questions or queries about contentious probate costs or, if you are interested in further in-depth training on the topic, please get in touch at [email protected].
