Cost of a Small Estate Distribution

A small estate distribution is the simpler and cheaper route to distributing an estate, but it only applies where the estate meets the conditions set out in the Small Estates (Distribution) Act 1955. If it does not qualify, the route shifts to letters of administration or a grant of probate through the courts, which cost differently.

What makes up the cost

Unlike conveyancing, there is no single percentage scale that sets the whole cost of a small estate. The cost is built from several components:

• Legal fees. For reviewing documents, identifying the entitled beneficiaries, preparing the application, and representing the applicant at the hearing.
• Searches and verification. Official title search, confirming the state of the title, and checking for any charge or caveat over the property.
• Official fees. Application and related fees charged by the authority.
• Registration costs. Once the distribution order is issued, the transfer to the beneficiaries still has to be registered at the land office.
• Document replacement. If the original title is lost or death certificates are incomplete, there is an additional cost to replace them.

What drives the cost up

Three things most often push the cost well beyond the initial estimate:

• Beneficiaries who do not agree. If everyone agrees on how the estate is to be divided, the matter moves quickly. If there is an objection, it becomes a longer matter.
• Beneficiaries who cannot be traced or are overseas. Every beneficiary has to be identified and given notice.
• A beneficiary who has died after the deceased. This creates an overlapping estate that has to be resolved at the same time.

How the cost compares with probate and letters of administration

A small estate is usually the cheapest route because it is handled administratively rather than through full court proceedings. Probate and letters of administration involve court filings and, in the case of letters of administration, sometimes a surety bond requirement. The probate and letters of administration cost guide explains the difference.

Costs after the order is issued

The distribution order by itself does not change the name on the title. Once the order is obtained, the transfer to the beneficiaries still has to be registered at the land office, and that carries its own registration fee. Many people leave this step out when budgeting.

If the beneficiaries later want to sell the property, that sale is a separate matter with the usual conveyancing costs, and the seller has to account for real property gains tax.

Why it is worth resolving early

Property that remains in a deceased owner’s name cannot be sold, charged or transferred. Every year that passes adds risk: beneficiaries die, documents are lost, and the number of parties who have to agree grows. Resolving an estate five years after death almost always costs less than resolving it fifteen years later.

Frequently asked questions