hinekadon (19-04-21)
My Mum passed away recently
Myself and my two brothers are all Executors to the estate
We went to the solicitor to have the Will read
After reading the Will the solicitor proceeded to say "I will write to the Bank and have all her accounts frozen" "I will then get papers ready for probate"
she asked the value of her Farm property we said we had no idea we had a guess of $600,000 (she said that will do for probate)
When Probate papers were ready to sign about 4 weeks later we all went into her office, she said I will get you to sign all documents now, (also to transfer the property into all our names as we are also the beneficiaries etc ...) she read the first page of the application for probate document then bought about 4 groups of document for us to sign, only the application for probate document was filled in, the rest we were signing blank pages no date or anything else
The next day I started feeling insecure remembering a lot of the documents we signed were all blank pages only lines on them
So I sent her an email saying "we have not discussed your fee yet" & " what is it likely to cost us to do all those documents that we signed yesterday"
about 3 days latter we got a contract for us all to sign detailing her fees & "backdated" to the day we signed all the other documents
her professional fee was $5020 +GST + expenses & registration fees of about $450 + GST , GST of about $547 Total Payable to the solicitor about $6017 (this does not include the bank cheque payable to the NSW Supreme Court of $1607 for application for probate we paid for that separately)
She also wants to put all my Mum's money into the solicitors trust account and wants us to agree to let her take out her fees before she gives us the rest on completion.
There are no bills the solicitor has to pay on my mum's behalf, I do that (funeral expenses, utility bills etc ...)
The will is uncontested .... I don't see any problems ahead ....
Very simple all she needs to do is do probate and transfer property Title and distribute money in account ....
My question is ..... Is $6000 legal fees too high or not to do this (not including $1607 application for probate this was already paid by us)
Thanks
Last edited by OSIRUS; 19-04-21 at 12:21 PM.
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hinekadon (19-04-21)
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Firstly mate, my condolences.
Fees, for probate and solicitor's legal fees are proportional relative to the amount of work the solicitor is required to perform.
The more complex an estate, the more legal work, etc.
Some legal firms offer a fixed rate, but many charge by the hour.
Fees are typically based on an estate's value.
This document may be a guide:
OSIRUS (20-04-21),VroomVroom (20-04-21)
Going by those figures - 1% of the total asset - lower the valuation if possible - maybe to late.
1x 600000 divided by 100 = $6000
Last edited by Johnno; 19-04-21 at 01:48 PM.
OSIRUS (20-04-21)
When my mother passed away, father already gone, I bit the bullet and did it myself.
Tip always over value the property to the top of that fee range. Same Fee.
It reduces Capital Gains Tax when you sell.
The actual Government Fees are available on the Supreme Court Website.
Spent about 5hrs on the paperwork and two trips to the Court building.
Having said that, If the total Fee is $6,000.00 you have done okay.
Always insist on exact costs from Professional Liars.
OSIRUS (20-04-21)
When my mother-in-law died a few years ago, I also prepared and lodged the appropriate paperwork, after downloading a sample (for lawyers) from the Supreme Court website.
The probate officer I later saw at the Supreme Court was happy to process the application for me, after a slight alteration and retyping by his secretary, while I went for a walk.
I also lodged the property transfer documents for my wife at the State Lands Title Office and paid the appropriate fee.
All was completed successfully much to the satisfaction of my wife, who was the beneficiary.
OSIRUS (20-04-21)
now now we cant be taking the cream from the fat cats now you cheapskates
OSIRUS (20-04-21)
Thanks, Good Point (although I think she has sent the papers now with a property valuation of $600,000)
We got an Estate agent to give us his valuation of what the property would "sell for" and 3 or 4 days latter he said between $900,000, and $1,000,000
We were also thinking of getting a Registered Valuer to value the property which may cost $1000 or more but should be an accurate valuation .... ?
And like you said Capital gains Tax will become an important consideration if we want to sell the property straight away
Have to look into this ..... otherwise may have to wait to sell the property when Capital gains tax is less (not sure how long this period is ..... 5 years or more ?)
Have to look into implications of Capital Gains Tax
Last edited by OSIRUS; 20-04-21 at 10:03 AM.
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hinekadon (20-04-21)
If you sell the property in the first 2 Years there is no Capital Gains Tax, it only comes into play if you keep it.
That is sell directly from the Estate and not have it to you is the safest.
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