I fully understand that knowing the cost of a service upfront is important. However, it’s equally crucial to understand that being driven solely by price can sometimes lead to a ‘false economy’.

Let me explain why working with a regulated legal practice isn’t just about cost – it’s about ensuring your peace of mind and protecting your wealth.

The Importance of Wills and Powers of Attorney

Making a will or a power of attorney is one of the most significant decisions you’ll make in your lifetime. These documents provide peace of mind, ensuring that you remain in control of who will receive and manage your assets after your passing or in the event of your incapacity.

In my view, creating a will and a power of attorney should be part of a broader estate planning exercise. The documents are the result of what should be an informed discussion between the client and their adviser.

For instance, when I’m approached by a couple – whether married or unmarried or civil partners – they often wish for the survivor to inherit their estate outright on the first death, expecting the survivor will leave part, or all, of what they inherit to their children or family.

While this is, of course, entirely their decision, I feel it’s my responsibility as their professional adviser to highlight the potential risks involved with this. For example, if the survivor remarries, forms another civil partnership, or enters into care or financial difficulties (e.g. – bankruptcy), this could jeopardise the assets passing to those they ultimately wish to benefit. I often recommend an alternative structure that provides for the survivor’s security while also safeguarding capital for the ultimate beneficiaries, such as their children. This approach is usually well-received and implemented by clients.  It is the advice behind the making of the Will which is critical.

The Value of Expertise in Estate Administration

Dealing with the estate of a loved one can be distressing and having a professional involved can reduce this and be reassuring. Additionally, when dealing with estate administration, it is important that all tax exemptions and reliefs available are claimed. There are lesser-known exemptions and reliefs in the Inheritance Tax legislation which may be missed. We can advise on tax exemptions and reliefs available to lower the estate’s tax burden. This advice can result in significant tax savings, often more than covering our fees.

These are just a couple of examples where a specialised adviser can add substantial value.

The Risks of Unregulated and Unqualified Providers

The Society of Trust and Estate Practitioners (STEP) conducted a survey in April 2023 entitled ‘Wills and Trusts: Buyer Beware’. The survey focussed on the risks and impact of unqualified and unregulated advisers in the estate planning sector. The findings were alarming, revealing instances of disastrous consequences due to poor advice. For example, some individuals were advised to gift their home into a trust during their lifetime without being informed of the adverse implications, such as immediate tax charges ranging from tens of thousands to £2 million!

Unregulated providers might claim their fees are significantly cheaper than those of a regulated practice, but, as the survey makes clear, this is often misleading when you consider the full picture. According to the survey, there can often be hidden extras not clearly disclosed upfront. For instance, a will might be offered at an attractive price, but the provider or an associated entity may be appointed as the executor and then charge substantial fees for administering the estate. Other hidden costs could include storage or retrieval fees.

Moreover, poorly drafted wills can result in significant legal costs down the line. In the STEP survey, 79% of respondents reported encountering a will with errors in the previous year. This can have particularly catastrophic consequences if not discovered until after the Testator’s passing. This underscores the risks of opting for an unregulated or unqualified provider.

Why You Should Choose a Regulated Provider

There are significant other benefits to using a regulated professional for writing your will, estate planning, or estate administration services. Regulated legal professionals are required to disclose their regulator’s name, provide transparency in relation to fees, carry professional indemnity insurance, and maintain an in-house complaints process. Additionally, clients of regulated providers have access to an independent legal ombudsman in the unlikely event of something going wrong. Regulated practitioners are also subject to continuing professional development requirements in order to keep up to date with the latest legal and tax changes in the field.

Even within the regulated sector, it is important that properly trained advisers with a recognised specialist qualification are used.  Instructing a member of STEP is a reliable indicator of quality.

In conclusion, while it’s natural to consider the cost of legal services, it’s crucial not to be swayed by price concerns alone. The risks of working with unregulated or unqualified providers can far outweigh any initial savings. By choosing a regulated legal practice, you’re not only paying for a service; you’re securing the peace of mind that comes from knowing your estate is in safe, expert hands.