Estate Planning Cost Calculator — United Kingdom 2026-27
Planning ahead — understand the costs of administering an estate.
Estimate the full cost of administering a UK estate, including probate, executor fees, inheritance-tax context, and CGT on inherited assets so you can see what beneficiaries may actually receive.
United Kingdom Estate Planning Notes
UK estate costs are often driven by probate fees, executor charges, inheritance-tax exposure above the nil-rate bands, and whether assets can pass using spouse or residence nil-rate reliefs.
This version is tuned to UK estate planning, where probate, inheritance tax, and executor administration costs tend to matter more than you might expect.
UK-specific treatment for estate planning: figures are framed in pounds, with British household or business wording and the assumptions commonly seen in PAYE, HMRC, mortgage, pension, and consumer-credit contexts.
Watch for UK markers in the page copy and inputs: HMRC, PAYE, National Insurance, pension contributions, stamp duty land tax, miles, APR, part-exchange, council tax, VAT, and GBP-based totals.
The result should be read as a United Kingdom estimate, so compare it with UK provider quotes, HMRC or GOV.UK guidance, lender affordability rules, devolved-nation differences, or regulated advice where needed.
Estimates only. Estate costs vary significantly by estate size, asset composition, and whether a valid will exists. Seek legal advice for your specific situation.
In the UK there is no Capital Gains Tax when someone dies. Assets are “uplifted” to their market value at the date of death (the probate value), free of CGT — so the entire lifetime gain escapes tax. CGT only arises later, if a beneficiary sells for more than that probate value.
Whatever the deceased originally paid, the beneficiary’s base cost is reset to the probate value. A home bought for £80,000 and worth £500,000 at death passes with a £500,000 base cost — the whole £420,000 lifetime gain is wiped out for CGT purposes.
CGT applies only to the gain since the date of death, above the £3,000 annual exempt amount (2026/27), at 18% for basic-rate taxpayers or 24% for higher-rate taxpayers. Gains on residential property must be reported and paid to HMRC within 60 days of completion.
There is no CGT while the estate holds an asset, but a beneficiary who keeps a rental, second home, or share portfolio and sells it years later pays CGT on the growth from the date-of-death value. Keep the probate valuation as evidence of the base cost. Source: GOV.UK Capital Gains Tax.
A pension is the most commonly misunderstood part of estate planning. A defined-contribution pension does not automatically form part of your estate — and the income-tax treatment depends entirely on the age you die and who receives it.
If you die before 75, your remaining defined-contribution pension can usually be passed to your nominated beneficiaries completely free of income tax — whether they take it as a lump sum or draw it as income. A £500,000 pot can pass with no income-tax liability.
If you die at 75 or over, your beneficiaries pay income tax at their own marginal rate on whatever they draw from the inherited pension. Spreading withdrawals across several tax years — or drawing in a year of lower income — can keep them out of the higher and additional-rate bands.
Complete an “expression of wish” form with your provider so the scheme trustees pay the right people and the pot stays outside your estate. Important: from 6 April 2027 most unused pension funds will be brought into the estate for Inheritance Tax — a major change to plan around. Source: GOV.UK.
Most estate administration costs can be significantly reduced with preparation. The earlier planning starts, the more options are available.
Dying intestate (without a will) adds 40–50% to legal costs, removes your control over asset distribution, and can take 12–24 months longer to resolve. A properly drafted will costs £300–£800 with a solicitor and is one of the highest-ROI legal documents you will ever sign.
A solicitor handling probate typically charges around 1–5% of the estate. On a £1M estate that is £15,000–£20,000. A trusted family member or friend as lay executor, with solicitor support, typically costs 0.3–0.5% in legal fees. The saving is real but the lay executor carries personal liability — choose carefully.
A discretionary will trust lets trustees decide how and when to pay capital and income to a class of beneficiaries — useful for protecting young or vulnerable heirs, ring-fencing assets from a survivor’s estate, or preserving a nil-rate band. Trust income is taxed at trust rates (up to 45%), so take advice; setup adds roughly £500–£2,000 to will costs but can be worthwhile for larger or blended-family estates.
Methodology — probate, executor fees, inheritance tax, and CGT
What is included in the estimate
The estimate shows your Inheritance Tax: the estate value, minus debts and the spouse and charity exemptions, minus your tax-free allowances (the £325,000 nil-rate band, plus the £175,000 residence band if you leave your home to children), taxed at 40% above that (36% if 10%+ goes to charity). It also adds the £300 England & Wales probate application fee (rising to £526 from 13 July 2026).
What is not included
The estimate does not include: tax on gifts made in the 7 years before death (potentially exempt transfers that can bring earlier gifts back into the estate), income tax on estate income during administration, inheritance tax on assets held in trust, or contested-will litigation. Complex estates should take professional advice.
Probate & administration costs
| Executor type | Typical fee |
|---|---|
| Probate application fee | £300 (estates over £5,000) in England & Wales → A flat fee — not a percentage of the estate |
| Solicitor handling probate | ~1–5% of the estate (or fixed fee) → Optional — executors can apply for probate themselves |
| DIY executor (family member) | Just the £300 fee + any valuations → Lowest cost; the executor is personally responsible for the IHT return |
How probate and Inheritance Tax work in the UK
Probate (or Letters of Administration if there is no will) gives the executor legal authority to deal with the estate. In England & Wales the application fee is a flat £300 (free under £5,000); Scotland (confirmation) and Northern Ireland have their own scales. Any Inheritance Tax due must usually be paid before probate is granted.
| Allowance / band | How it works (2026/27) |
|---|---|
| Nil-rate band (NRB) | £325,000 tax-free for everyone |
| Residence nil-rate band (RNRB) | +£175,000 if you leave your home to children/grandchildren |
| Married couple / civil partners | Up to £1,000,000 combined (transferable bands) |
| IHT rate above the bands | 40% (reduced to 36% if 10%+ left to charity) |
| RNRB taper | Reduced £1 for every £2 the estate exceeds £2,000,000 |
| Spouse / civil partner | Everything left to them is 100% IHT-exempt |
| Charity | Gifts to UK charities are 100% IHT-exempt |
| Probate fee (England & Wales) | £300 flat (free under £5,000) |
Not all estates need probate. Assets held as joint tenants pass automatically to the survivor, and most defined-contribution pensions sit outside the estate and pass by nomination — often free of Inheritance Tax. Small estates below a bank’s threshold may be released without a grant.
Capital gains tax rules for estates, inherited property, and shares
No Capital Gains Tax on death
There is no Capital Gains Tax when someone dies — assets are not treated as sold. Instead they are valued at the date of death (the “probate value”), which becomes the beneficiary’s base cost. CGT only arises later if a beneficiary sells the asset for more than that probate value.
Gifts and the 7-year rule
Most gifts you make are “potentially exempt”: if you live 7 years after making them, they fall out of your estate entirely. Die within 7 years and they count back in, though taper relief reduces the tax on gifts made 3–7 years before death. You can also give £3,000 a year, plus small gifts, completely free of IHT.
Pensions on death
| Recipient | Tax on pension death benefit |
|---|---|
| Defined-contribution pension (death under 75) | Usually paid tax-free to your nominees |
| Defined-contribution pension (death 75+) | Taxed as income at the beneficiary’s rate when drawn |
| Most pensions & the estate | Usually sit outside the estate for IHT (rules tightening from 2027) |
| Life insurance in trust | Pays out free of IHT and outside the estate |
| Life insurance not in trust | Counts toward the taxable estate |
How to reduce estate administration costs and tax for your beneficiaries
Five steps that have the most impact
- Make a valid, current will — avoids the rigid the intestacy rules rules and makes sure your home and assets pass the way you intend (key to claiming the residence band)
- Nominate your pension beneficiaries — a current expression-of-wish form lets your pension pass outside the estate, usually free of IHT
- Use your spouse exemption + transferable bands — a married couple can pass up to £1,000,000 IHT-free when a home goes to children
- Give early and regularly — gifts survive IHT after 7 years, and the £3,000 annual exemption and gifts out of surplus income are immediately exempt
- Consider trusts or life insurance in trust — for larger estates, these can keep assets outside the taxable estate; take regulated advice first
What estate documents cost
A straightforward will from a solicitor costs roughly £150–£500 (less with a reputable online service). A will with trust provisions or tax planning costs £500–£2,000+. Dying intestate hands distribution to fixed statutory rules — which may not match your wishes and can cost far more in tax and delay.
❓ Frequently asked Frequently asked questions
Is there inheritance tax or estate tax in the United Kingdom?
Yes. Inheritance Tax (IHT) is charged at 40% on the value of an estate above the tax-free allowances: the £325,000 nil-rate band, plus a £175,000 residence nil-rate band if you leave your home to children or grandchildren. Anything left to a spouse or civil partner is 100% exempt, and unused allowances transfer to the survivor — so a married couple can pass up to £1,000,000 tax-free. Gifts to charity are exempt, and leaving 10%+ of the taxable estate to charity cuts the rate to 36%. Source: GOV.UK Inheritance Tax.
What does probate cost in the United Kingdom?
In England and Wales the probate application fee is a flat £300 for estates over £5,000 (free below that), rising to £526 from 13 July 2026 — it is not a percentage of the estate. Scotland (confirmation) and Northern Ireland use their own scales. If you appoint a solicitor to administer the estate, their fees typically add 1–5% of the estate value; a lay executor doing it themselves pays little beyond the court fee and any professional valuations.
Does a pension form part of the estate?
Usually not — a defined-contribution pension is normally paid at the discretion of the scheme trustees and sits outside your estate for Inheritance Tax. Complete an “expression of wish” form to tell them who you want to benefit. Income tax depends on age at death: tax-free to beneficiaries if you die before 75, taxed at their marginal rate if you die at 75 or over. Note that from 6 April 2027 most unused pension funds will be brought into the estate for IHT.
Do I pay CGT when I inherit property?
Not when you inherit. There is no Capital Gains Tax on death — the asset is “uplifted” to its market value at the date of death, which becomes your base cost. CGT only applies if you later sell for more than that probate value, on the gain since death, above the £3,000 annual exempt amount (2026/27), at 18% (basic rate) or 24% (higher rate). Residential-property gains must be reported and paid within 60 days of completion.
What is a discretionary will trust?
A discretionary will trust is created by your will and comes into existence when you die. The trustees decide how and when to pay capital and income to a class of beneficiaries, which is useful for protecting young or vulnerable heirs, keeping assets out of a survivor’s estate, or using a deceased spouse’s nil-rate band. Trust income is taxed at the trust rates (up to 45%), so take advice: setting one up adds roughly £500–£2,000 to will costs but can be worthwhile for larger or blended-family estates.
How long does estate administration take in the United Kingdom?
A simple estate with a valid will, no disputes, and straightforward assets typically takes 6–12 months from death to final distribution. Estates requiring probate, with property to sell, or with complex assets typically take 12–18 months. Contested estates or the intestacy rules can take 2–5 years. The largest single cause of delay is absence of a valid will.