Probate solicitors can bill clients extra according to the value of the estate they are administering - although they should agree the basis of the charging at the beginning of instructions, the Court of Appeal ruled last week.

The issue arose after Bolton firm Kippax Beaumont Lewis (KBL) acted in administering the 9.5 million estate of Sir Geoffrey Hulton and submitted bills for 386,000 for time spent, plus 268,000 based on the value of the estate.

There was no express agreement between the firm and the trustees about how the firm would charge.

Costs judge Master Rogers ruled that KBL was not entitled to an uplift as the value element should be reflected in the hourly rate; he argued that time-recording material was now sophisticated enough to enable firms to do this.

The Law Society intervened in the case because more than 70% of probate solicitors charge on the dual basis of time spent and value.

The Court of Appeal said practitioners should have the choice of either reflecting value in the hourly rates or including a separate charge at the end - although they must not do both - but recommended that this be discussed with clients at the beginning of the case.

Lord Justice Longmore said that although it was normal and possible to reflect value in the hourly rates when billing, solicitors should receive 'fair and reasonable remuneration, taking all relevant factors into account'.

Law Society chief executive Janet Paraskeva said the decision had clarified the position for probate solicitors.

'It confirmed that a separate value element may be charged provided that the value of the estate was not reflected in the hourly charge,' she said.

West Sussex law firm The Owen-Kenny partnership acted for the trustees.

Partner Simon Kenny said the guidelines were helpful, but stressed that the assessment of costs for the case was still on-going and argued that discussing how costs would be determined with the client beforehand was 'good practice to follow'.

KBL declined to comment at this stage.

Paula Rohan