Are my solicitor executor fees too high / unfair / Improper England

[noonenoname]

Hi all,
Sorry if this post is too long but I wanted to make sure that you get all the relevant information.

I’m looking for UK probate/legal guidance. I’m a beneficiary, not the client. The executors are a firm of solicitors, appointed as executors in the will.
There are two linked estates (husband died first, then wife):

• Estate 1 value: approx £480,000
• Estate 2 value: approx £750,000

The solicitors handled probate and full estate administration for both. There was 1 property involved some stock investments and 4 beneficiaries so not a particularly complicated estate there were no disputes or complex issues to deal with that I am aware of.

Fees disclosure at the start

At the outset, I specifically asked by email what their fees would be for acting as executor. I received the following reply (quoted verbatim):
“Our fees for acting as Executor are charged on an hourly rate basis and my hourly rate is £250 plus VAT.”
No percentage-based charging, capital/value charge, or alternative fee basis was mentioned to me.

What has appeared in the final accounts (figures changed slightly for anonymity)

Estate 1
Time-based invoices: £2,431 (+ £2,387 + VAT).
Capital charges: 1.5% £5,210 + 0.75% £1,740

Estate 2
Time-based invoices: £4,000 + £1,400
Capital charges: 1.5% £8,436 + 0.75% £1,745
Overall total for both estates incl. VAT: £32,818.80
It is my understanding that the first estate largely transferred to the second due to the surviving spouse, and the two estates were administered sequentially by the same firm. That structure would normally be expected to reduce overall complexity and allow efficiencies in administration.
The final estate accounts now show that the solicitors (acting as executors) have deducted:

• Hourly time costs, invoiced during the administration (low five-figure total across the estates), and
• Additional “capital charges” calculated as percentages of the estate value (e.g. 0.75% / 1.5%), plus VAT

These percentage charges amount to many thousands of pounds on top of the hourly invoices.
This is the first time the percentage charges have been clearly identified and quantified.

Why I’m concerned

• The solicitors are executors charging themselves, so there’s an inherent conflict of interest
• When I asked about fees at the outset, only hourly charging was stated
• The will does not obviously specify percentage charging
• Beneficiaries were not asked to consent to percentage fees
• Had the percentage element been disclosed when I asked about fees, I would have queried or challenged it at the time. I specifically asked about fees at the earliest opportunity to try and avoid any surprises.

Their website says £1700 - £3800 is a typical cost for probate and it also refers to an hourly rate without mentioning a percentage fee.

My questions

As a beneficiary, what are my realistic options?

Is it reasonable to challenge whether the estate should bear a percentage-based charge at all given that this wasn’t disclosed when I specifically asked about fees and it is my understanding many solicitors charge hourly only and their webite refers to hourly charges so I would have no reason to think otherwise.

Is it reasonable to ask the executors to identify the authority (will clause or agreement) permitting both hourly fees and a percentage charge?

In practice, do disputes like this tend to be resolved by making a complaint or will it require escalation to the legal ombudsman or court?

I think I have to be mindful about the loss of interest if a dispute takes months to resolve as it is my understanding that the money will be held by the executors in a very low interest account. Will the solicitors make a partial payment in the event of a dispute? It wouldn’t be reasonable to hold the full amount of money back if the only dispute is about their fees right?

If I do decide to dispute it should I open an official complaint at the earliest opportunity? My understanding is it may be better to open a complaint early as they aren’t allowed to charge for their time when dealing with a complaint. Should I ask for detailed invoice breakdowns before I open a complaint or after? They have currently only sent their charges with no detailed breakdown.

I understand professionals need to be paid for their work and I’m not trying to avoid legitimate and fair fees that have been correctly disclosed and applied I just want to understand to what extent this is normal and whether the lack of disclosure when I specifically asked about fees would help give me strong grounds to dispute it.

Thank you for reading any insight or advise would be really appreciated.

[PallasAthena]

I can't help with your main question but the cynic in me wonders whether their their request for a waiver of any claims against them (your other thread) is to stop you challenging their fees!

[atticus]

Given that when you enquired about fees you were only told about the hourly rate and not the additional percentage charge, you are entitled to complain about this. Are you the main beneficiary?

[Frank1]

Was the property owned as joint tenants?
If it was it is just a short form to remove the deceased's name from the deeds. Charging a percentage on 50% of the property value would be excessive.
Did the husband own much in his name only? If not, probate may not have been necessary.

The solicitor has used a hybrid method for charging his executor fees. This method is not uncommon The percentages charged are within recommended rate bands.

There is a lot of work involved for an executor. The hours charged for the estates would not cover all the executor duties.

[noonenoname]

I can't help with your main question but the cynic in me wonders whether their their request for a waiver of any claims against them (your other thread) is to stop you challenging their fees!

Thanks to everyone for their replies yes thats exactly my concern as well.

[noonenoname]

Was the property owned as joint tenants?
If it was it is just a short form to remove the deceased's name from the deeds. Charging a percentage on 50% of the property value would be excessive.
Did the husband own much in his name only? If not, probate may not have been necessary.

The solicitor has used a hybrid method for charging his executor fees. This method is not uncommon The percentages charged are within recommended rate bands.

There is a lot of work involved for an executor. The hours charged for the estates would not cover all the executor duties.

They were married. I think the husband did own a fair bit in his name only. Are you saying that the fees are fair excluding the "50% of the property value percentage"

[Frank1]

No harm in querying the fees, particularly for the husband's estate, if, as you say, the property and most of the accounts were jointly owned.