The Legal Services Consumer Panel has this week called for probate and estate administration services to be regulated and made reserved activities.
A submission by the Consumer Panel to the Legal Services Board follows a earlier call for the regulation of will writing.
The Consumer Panel has suggested that the proposed regulatory regime for probate and estate administration services should include suitability checks on individuals, including criminal records and bankruptcy checks; measures to ensure financial protection for consumers; and a system of complain to the legal ombudsman.
The panel suggests that regulation in this area would protect consumers from the risk of fraud and offer redress against poor service and over-charging.
The Law Society has previously warned that consumers risk losing everything if they allow unqualified and unregulated will writers to have full control of their estate's assets. The Law Society highlighted the potential risks during the estate administration process in its submission to the Legal Services Board's call for evidence into will writing, estate administration and probate activities.
Responding to the Consumer Panel's call, Law Society President John Wotton said: “We welcome this proposal and are pleased that the Consumer Panel share our concerns about this. Their report highlights Law Society concerns that there is currently no regulation or monitoring in place to ensure that administrators do not misappropriate the estate's assets.
“All solicitors are subject to strict regulation by the Solicitors Regulation Authority to ensure that they deliver the best service to their clients. Solicitors are required to have insurance, which protects the public, while the Law Society, which represents solicitors in England and Wales, also provides a compensation fund if things go wrong. Choosing a solicitor ensures a high level of service and expertise plus guaranteed consumer protection. Regulation in the area of probate and estate administration services will only be effective if it is of a similar standard to that already imposed on solicitors.”
John Wotton added that it is becoming more difficult to assist consumers to identify reputable service providers as many providers now operate online.
A YouGov survey published in January 2012 by the LSB found that overall there was a positive attitude among consumer respondents towards regulation.
The YouGov survey also indicated that 86% of consumers who use professional probate services use solicitors, who are already regulated. However, while the unregulated market for probate and estate administration is small, a third of the will-writing market is served by unregulated will writers.
Ends
Notes to editors:
The Law Society is the independent professional body, established for solicitors in 1825, that works globally to support and represent its members, promoting the highest professional standards and the rule of law.
The Society has launched a dedicated 'issues' page on its website, which contains a campaign booklet, setting out the problems unregulated will writers cause and the arguments for their regulation.
Visit the campaign page
View the Law Society guide to making a will