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Cost of Letters of Administration in Ghana
There are three (3) levels of payments involved in the cost of Letters of Administration in Ghana. These are the Lawyer’s Fees, paid to your Lawyer for legal services, the Court Fees paid to the Court for filing of your documents and the Estate Duty, a levy charged by the Court on the value of the estate.
Learn more about Applications for Letters of Administration here.
In summary, the amount paid to the Lawyer is negotiable, it is a maximum of GHc14,000 or 5% of the Estate or both. The amount paid to the Court also depends on the size of the estate; it may be as little as GHc500 or several times more depending on the documents required. The amount paid to Court as Estate Duty is 1% to 3% of the estate.
Lawyer’s Fees
The Solicitor’s fees usually depends on the size and value of the estate. In other words, a small estate will attract a smaller legal fee than a large estate.
It is worth noting that an experienced senior lawyer will charge more than a lawyer who is fresh out of law school. However, the charges are not arbitrary, the Ghana Bar Association determines the legal fees of lawyers and the 2022 GBA Scale of Legal Fees provides the most current guide for legal charges in Ghana. Inheritance cases are dealt with at page 8 of the Scale of Fees.
Please note that the Solicitor’s Fee is paid to the lawyer for legal services and it is separate from the fees paid to the court and other incidental fees/bills.
Estates smaller than GH₵200,000.00 attract a maximum legal fee of GH₵14,000.00.
Estates greater than GH₵200,000.00 will attract the same legal fee of GH₵14,000.00 in addition to a maximum of 5% on the remainder.
Court Fees
The Administration process is done by filing legal documents at the Court. The Courts charge a filing fee for every legal document. It is a small charge that is levied on every legal process filed at the Court.
Every legal document has its own charge and the charges are determined by the Rules of Court Committee. The most current filing fees are in the Civil Proceedings (Fees and Allowances) (Amendment) Rules 2014 (C.I.86). The costs to be paid for each document depends on the particular type of legal process being filed. It may be as little as GHc50, GHc500, GHc1,000 or more.
The total amount to be paid as filing fee throughout the application process is impossible to pre-determine. This is because every case is different and may require different legal solutions. However, for a small estate with no contentions and no family disputes, about GHc500 to GHc1000 will be a reasonable budget for filing fees.
Estate Duty
The Law levies a Duty on the estate. It is based on the value of the estate. It is approximately 1% – 3% of the value of the estate.
The Court will only release the actual Certificate (L/A or Probate) after the Estate Duty is paid.
Additional Expenses
Apart from the official costs, there are other incidental expenses. These are necessary for a successful estate administration. They are not paid to the Lawyer or Court.
These include incidental costs like transportation, and other similar costs, etc.,.
The Administrator or Executor ought to pay for all expenses out of the estate. They must settle the expenses before the distribution can take place. Therefore, it is advisable for Administrators and Executors to keep receipts of payments made on behalf of the estate. This will allow them to claim the amounts involved from the estate before distribution.
Conclusion
The total Cost of Administration in Ghana is hard to assess.
However, with this post, we hope to provide a guide towards assessment. We can guarantee that whatever estimate is assessed based on this guide, will turn out to be more or less than the actual cost of Administration.
22 Comments
Is there any requirement where a family head is needed during the processing of LA? The entire extended family and 2nd wife of a deceased man have refused to accept the processing of LA. The first wife and children and willing to do so, can the first wife and children go ahead without the second wife and family?
Please note that we cannot give you legal advice on this platform, we can only educate and help you to understand what the law says about a given subject. There is no law that requires the participation of the Head of Family in an application for LA. Most of the Judges require it though.
What is the authority for the 1-3% estate duty.
All fees charged by the various courts are governed by the Civil Procedure (Fees and Allowances) Rules CI 55 as amended by Civil Procedure (Fees and Allowances) Amendment Rules CI 86. (See Schedule under Circuit and High Courts – Probate and Administration)
What is the authority for the 1-3% estate duty that is to be paid before the LA or probate are released by the court
All fees charged by the various courts are governed by the Civil Procedure (Fees and Allowances) Rules CI 55 as amended by Civil Procedure (Fees and Allowances) Amendment Rules CI 86. (See Schedule under Circuit and High Courts – Probate and Administration)
Hi Please what if you realized that the deceased(mother) family wants to take over the estate like bank and house, does not want us children to do a filing. Can I apply without the family?
Please note that we cannot give you legal advice on this platform, we can only help you to understand what the law says about a given subject. It is better if the family agrees and works together, but if there is no unity amongst the family members, then the one who is highest on the list can apply and the Court will take a decision.
In case there is no estate and no contention. Is it really required to have an L/A to access deceased bank account? Does it also warrant same procedure?
Yes, where the only property in the estate is money at bank, or insurance claim or any other financial instruments, the law still requires L/A. Most banks and financial institutions will require L/A before granting you access to the deceased’s account. Note that it is a criminal offence to access the deceased intestate’s bank accounts or other money without first obtaining L/A.
I think you should have a second look at the time the Estate Duty is paid. Some people after they receive the L/A would have to wait for about 6 months to a year to receive the Estate (especially those applying for the benefits of their deceased guardians). These people are forced to borrow huge amounts to settle the duty which puts burden on them. In cases like this, I think the ideal thing is to work hand-in-hand with the authorities responsible for the disbursement of these funds and deduct the duty from source.
The Court can grant the L/A application, but you will only receive the actual L/A document after you have paid the estate duty. This is why many are forced to take loans to pay the estate duty. They get the L/A application granted but cannot afford the estate duty and so the estate is locked up until they pay. I think a good solution is to have a fixed maximum. So the estate duty can be stated as 1% to 3% of the estate or GHc5,000 whichever is lower.
Can you bring your personal lawyer or the court will give you one.
Hello Ivy, You will have to engage a lawyer of your own choice to represent you in a case. If you cannot afford a lawyer, the Legal Aid Department can help you get a government lawyer at little to no cost.
Dear lexisghana.com webmaster, Thanks for the well-structured and well-presented post!
Hello Victor Commons, Thanks for reaching out to us. We appreciate your comments.
Hello pls a lawyer said he’s taking 20 percent don’t know if it’s the inheritance money or the value on it
Hello Ransford, Thanks for reaching out to us. You will have to ask your lawyer for further clarification on his/her legal fee. Our article on Cost of Letters of Administration in Ghana might be helpful.
When are fees due? And,,, can fees be paid out of the proceeds of the estate??
Hello David Knapp, Thanks for reaching out to us. COurt fee must be paid first before they will accept documents. Terms of Legal fee will be negotiated with the lawyer. Estate Duty will be paid before the L/A will be released by the Court. Expenses for the estate must be paid for out of the estate. If it pre-financed, it must be refunded after proof of financing is provided.
Too expensive
Hello Ebenezer,
Your comment is appreciated. How much do you think the cost for L/A should be?