By Simon Barber, Technical Manager at Title Research
This is the final blog in our four-part series exploring how genealogy supports estate administration. Here, we examine the different ways that the costs of tracing missing beneficiaries and genealogical work are charged, and why some methods are fairer and more transparent than others.
As has already been discussed, the genealogy industry in the UK is unregulated and can be split into two categories: heir hunters and probate genealogists. Heir hunters typically charge percentage or contingency fees, while probate genealogists usually work on a fixed-price or hourly basis. In terms of both fairness and transparency for legal professionals and beneficiaries, it is my belief that there is no scenario where a percentage fee is the right solution for a missing beneficiary or intestacy challenge.
The problem with percentage fees
The genealogy industry in the UK is unregulated and can broadly be split into two categories:
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Heir hunters, who usually work on a percentage or contingency fee basis
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Probate genealogists, who typically charge fixed fees or on a time spent basis
While contingency fees may appear attractive, there is no fair scenario where a percentage fee benefits the estate or beneficiaries. For example:
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Tracing a missing beneficiary usually involves the same work regardless of the inheritance value. A fixed fee ensures costs reflect the effort involved, not the estate’s size.
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Even a modest 10% fee can quickly become disproportionate. On a legacy of £5,000, that’s £500. On £80,000, that’s £8,000, often for identical work.
From a legal perspective, percentage fees raise questions of fairness. In cases of intestacy, beneficiaries may be charged different rates depending on what they negotiate with an heir hunter. This creates inequality and can lead to disputes.
A fairer alternative: Fixed and time-based fees
Using a probate genealogist who charges fixed or time-based fees ensures:
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Fairness: All beneficiaries are treated equally, avoiding disputes
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Transparency: Personal Representatives (PRs) know the likely cost upfront
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Estate protection: Fees can be charged as an estate administration expense (see Evans v Wescombe [1999])
We have seen extreme cases where percentage agreements risked spiralling into hundreds of thousands of pounds. For instance, we are aware of a case where the fee was projected at over £300,000. This was later challenged by beneficiaries and settled for nearer £30,000. Situations like these highlight why percentage fees are unsustainable.
The legal risk: Unconscionable bargains
A key legal issue is that heir hunters often know the estate’s value but do not disclose it before beneficiaries sign contracts. This imbalance of information means beneficiaries cannot make informed decisions, strengthening arguments of an unconscionable bargain.
In contrast, probate genealogists take a professional approach, working transparently with PRs who act as the instructing client. Even in cases where no PR is initially available, probate genealogists can help identify a suitable Administrator and defer their fees until instructions are in place, without resorting to percentage-based charging.
Conclusions
When faced with the choice of how genealogical research should be charged, our advice is clear: avoid percentage fees. They are often disproportionate, misleading, and risk creating unnecessary contention. Fixed or time-based fees provide fairness, transparency, and confidence for both PRs and beneficiaries.
At Title Research, our professional team supports legal professionals from the initial enquiry through to securing Missing Beneficiary Insurance, always with a transparent and fair charging methodology. If you want to find out more, get in touch via the form below.
Topics: Intestacy, Probate, Contingency Fees, Estate administration, Fixed fee, Heir hunters, Pricing
