Following a report into the Will-writing and estate administration services market, the Legal Services Board (LSB) has announced plans to deliver greater protection to consumers by bringing these services within the scope of regulation, regardless of who provides them.
The LSB commissioned the thorough independent review of how the services are currently delivered and what the concerns are. The report by IFF Research examines the provider perspective on delivery of these forms of legal advice, looking specifically at the market share by each different type of provider, as well as their arrangements for delivery and the respective risks.
Having read the report, here is a list of the key points:
- Average solicitors administer 100 estates every year
- The median fee is £1,500 for a simple estate and £5,000 for a complex one. Trust Corporations are more expensive
- Solicitors are regulated and some have the LEXCEL standard
- Non-solicitors are far less regulated and have less access to systems
- All solicitors are members of the compensation fund, approximately half of non-solicitors are
- Most solicitors offer a full range of probate services
- Non-solicitors are less likely to offer lower service levels including preparation of documents
- In law firms, half of staff providing probate services are qualified solicitors and a quarter are STEP members (Society of Trust and Estate Practitioners)
- A minority of non-solicitors had STEP members
- There is little consistency in charging structures – can be based on hourly rates, percentage of value of estate or flat fees. Often combined.
- There is concern that non-solicitors are not as aware of changes to the law
- There is no overall supervisory body for probate / estate administration services but solicitors are regulated by SRA
- Use of case management systems common among solicitors
- Non-solicitors are less likely to have IT systems and rely on practice manuals
- SRA requires complaints procedures for solicitors
- Less consistency regarding complaints in non-solicitors
- All solicitors carry Professional Indemnity Insurance, but non-solicitors are less likely to have insurance
- Lack of transparency of charging is the main issue for customers
On announcing the changes, chairman of the Legal Services Board, David Edmonds, said: “Making a will is something everyone should do. It is one of the most important actions that individuals take. We all should have a high degree of confidence in those entrusted with the task of writing our wills, advising us on the most appropriate actions, and ensuring that our wishes are carried out. For many people, the service they receive from their lawyer or will-writer meets their needs. But our research shows that there are significant numbers of people receiving poor service and poor outcomes… This is not about extending regulation for the sake of it; it is about maintaining public confidence in an important legal process; enhancing the environment for reputable providers; and protecting consumers at particularly vulnerable times in their lives…”
From Stephensons perspective, we welcome the IFF report findings and the changes announced by the LSB. We understand that clients want clarity over how much the service will cost. They also want peace of mind that the person dealing with the administration of their estate, or writing their Will, is qualified and regulated to do so.
When dealing with the administration of estates, we don’t charge a percentage of the estate, which others do, as it can lead to a large degree of uncertainty and the potential for increased fees. Instead, we aim to make our pricing as transparent as possible by providing fixed fees for some services, and hourly rates agreed at the outset where fixed fees are not suitable, rather than using confusing percentage rates based on lots of variables.
We have also developed a Probate calculator accessible on our website, www.4willsandprobate.co.uk, which will provide an instant quotation for administering estates with under ten bank accounts and which are under the Inheritance Tax threshold.
By Wills & probate Managing Partner, Tom Bridge