RegulationMay 1 2013

Why will writing must stay alive

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I feel that the greatest consumer detriment exposed by the investigation carried out by the board is that one in four wills, including those written by regulated solicitors, are worthless because they fail to achieve what was intended by the testator.

This represents tens of thousands of people wasting millions of pounds every year in legal fees, mostly paid to solicitor firms. While I welcome higher standards and consumer protection through the Legal Ombudsman, I question if will writing has to become a reserved activity, especially when you consider the ministry of justice’s reluctance to add more regulatory burdens for businesses.

I accept that there have been some isolated problems within the independent will-writing industry, but these were mostly confined to small companies, often sole traders. Most large organisations in the sector operate professionally and ethically, and provide a service which sections of the public clearly want and value. Existing laws, regulations, and codes of practice provide a strong framework of protection against many of the excesses identified, whether originating in the independent sector or among solicitors, in particular the Consumer Protection from Unfair Trading Regulations 2008.

For larger companies and for members of the two self-regulatory organisations, the Institute of Professional Will Writers and the Society of Will Writers, high standards are maintained through continual professional development with training provided by organisations such as the Society of Trusts and Estates Practitioners and the Chartered Institute of Legal Executives.

The issues raised by the board’s investigation go wider and deeper than the issues raised by those who have been lobbying for more restrictions. The investigation revealed some significant issues with the will-writing market that touche on all corners of the market – including, of course, solicitors who continue to write the great majority of wills.

It is widely accepted that not enough people in the UK have wills and that considerable consumer detriment arises when people die intestate so there appears to be a strong case to improve the situation.

The Cost of Dying, a report by Sun Life Direct, suggested that a quarter of adults will not have written a will before they die. A survey in October 2010 by research group unbiased.co.uk suggested 30m adults in the UK do not have a will. This includes almost 90 per cent of people aged less than 35, and two-thirds of those aged between 35 and 54, despite 92 per cent having a firm idea of where they would like their money to go.

Given these disappointing figures, I believe the starting point in any consideration of the future shape of the market should be a focus on what will help ensure that more, not fewer, wills are written.

I disagree with suggestions from some quarters that cost is not an issue when consumers consider whether to make a will. Surveys such as those undertaken by the Law Society suggest that consumers do not cite cost as an issue but, as anyone familiar with such surveys knows, consumers rarely admit to cost being the motivator for non-purchase. There is an actual example: to test its pricing, one company undertook an exercise and offered will writing at £110 and £65. Uptake of the service fell by 50 per cent at the higher price. I have no doubt that anything more than a small additional cost will mean a fall in wills being made.

In my view, these matters need to be considered when designing any new regulatory regime. The main issues as I see them are detailed below with my views on how they should be addressed.

* Independent arbitration for consumers. The simplest and most consumer-friendly approach would be to give the Legal Ombudsman wider powers and enable him to investigate complaints raised by the public against all providers of wills. The Professional Association of Legal Services has discussed this with the Legal Ombudsman and received a positive response.

* Quality of wills. The board’s consumer panel’s investigation found no better quality of will writing by regulated solicitors than the independent sector. Evidence from others demonstrated solicitor firms, particularly non-specialists, created problems with poor, or no, will storage and retrieval systems, a lack of continuity of service when firms close and when sole traders retired or died.

The Trading Standards Institute would be an ideal organisation to enforce higher standards. All will providers could be made to comply with a code of conduct provided by their regulator, their trade association, or directly through the institute. The latter is my preferred option for larger organisations as many regulators in the legal profession are more suitable for smaller providers. This code of conduct could include a requirement for each provider to carry a minimum of £2m professional indemnity insurance.

Ultimately the less onerous the solutions, the lower the cost passed on to the consumer while providing them with the additional protection they require.

As Citizens Advice Bureau stated: Regulation should be proportionate to ensure that small and large will-writing businesses can remain in the market, as long as they provide adequate services to consumers

Steve Jenkins is chief executive of Trust Inheritance

Key points

One in four wills are worthless because they fail to achieve what was intended by the testator.

There have been some isolated problems within the independent will-writing industry, but these were mostly confined to small companies.

Research suggests that a quarter of adults will not have written a will before they die