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They live in a different world

They live in a different world

Individual "A" is the settlor, trustee and beneficiary of a discretionary trust which contains nothing more than the original settlement of £10.

Individual "B" (brother of "A" incidentally), is in exactly the same position.  The trusts are identical in every respect.

The documentation was all drawn up by solicitor "S", for both cases.

It is now desired to wind up both trusts, by appointing the £10 back to the settlor, and solicitor "S" (who has all the details on their file, remember) is asked to draw up the two (identical bar name) deeds of appointment.  The solicitor will not be responsible for anything else (such as tax reporting compliance).

Your guesses, please, as to the solicitor's charge for this service. (PS I know the right answer, but wanted to check that I am in the right universe).

The clue, guys and gals, is in the subject header.

With kind regards

Clint Westwood.

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07th Feb 2012 15:04

Whatever it is it will be too much!

I often get involved with complex IHT issues with estates and trusts. I love it as the fees charged by the solicitors always make my fees look exceptionally good value for money (which, of course they are!!).

Cathy

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07th Feb 2012 15:08

In my experience...

... solicitor's fees tend to be directly proportional to one's proximity to a barrel.  Am I to take it that party A and party B are not equidistant from the barrel?

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07th Feb 2012 15:20

£1400 is my shot. However why

£1400 is my shot. However why bother to wrap up the trusts. Sounds like a waste of time and money 

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07th Feb 2012 15:31

£4500 plus VAT

And of course £75 for photocopying costs?

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07th Feb 2012 15:46

Hmmm...

£800 & VAT each?

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07th Feb 2012 16:27

£1,200 plus VAT

Well I'll have a go too ...

£1,200 plus VAT plus disbursements, call it £1,515.37 ... to be precise!!

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07th Feb 2012 16:33

Damn

Now I am going to have to recommend them as good value.  £500 + VAT for the two combined.

Thanks for the insight!

With kind regards

Clint Westwood

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07th Feb 2012 16:34

You're all wrong

It's free, gratis, nada, nowt...

I think it's called 'pro-bono' though what a singer with an Irish rock band has to do with it I don't know.

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07th Feb 2012 17:04

Wow!

Are you allowed to give them a plug here so we can all start using them?

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By MBK
08th Feb 2012 08:07

£500+VAT for...

... two identical pieces of paper (except for the names) is still a lot!

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10th Feb 2012 11:04

Remember they have to cover their "risk"...

... or at least that's what the one acting in an executorship told me.

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10th Feb 2012 12:02

If the Solicitor based the fee on value ...

.. what is the value to each 'settlor'?

Is it their original £10?  Plus interest?  Or is there some 'downstream' implication of not drawing up such deeds of appointment?  Or of not drawing them up properly?  Is there a consequential loss or a fine to be avoided, or even a term of imprisonment?  How critical is it that they are drawn up now?  Or are there other things to be considered?

When the problem and all the circumstances surrounding it are known and understood by the two settlors, they can also understand the value of the solicitor's proposed work.  Once they understand the value, they can communicate this to the solicitor so he/she can understand it.  Then a value-based fee can be suggested as the basis for a fixed-fee, fixed-scope, fixed-elapsed-time piece of work.  Between 5% and 10% of the value now understood might well be an appropriate fee.

Or am I living in cloud cuckoo land?

David Winch

Make Sales Without Selling and Get Paid What You're Worth

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