Editor's blog | Return of the private client lawyer

One of the more pernicious effects of the recession on high street firms has come to light vividly this week. Probate work, one of the natural income streams for smaller firms, is ebbing away from them.

While average funeral costs are going up, estate administration costs – as part of these overall costs – are going down. And not just by a few per cent. These costs, the bulk of which is the discretionary cost of using lawyers to wind up the estate of the deceased, have dropped 20 per cent on average in the past year, from £2,292 to £1,907.

This is only one of the findings in Sun Life’s sixth annual report into the cost of dying. The costs relating to estate administration are only one part of the picture but they connect intimately with the private client timeline for solicitors. Pressure at one end – non-discretionary costs – will have repercussions at the other – discretionary costs.

There is little statistical information on people’s attitude to probate and probate costs. Additional research conducted by the life insurance giant suggests that more and more people are obtaining probate themselves without going through a solicitor. What’s more, 90 per cent of those who have done so had no regret, according to Head of Life Planning, Simon Cox.

There could be several reasons for this. One that Cox says is increasingly relevant is that price competition has increased as a result of innovation, with cheaper pre-paid products being offered before the event.

When it comes to tying up funeral arrangements with legal services, the Co-op, of course, comes to mind. But there is no reason why law firms couldn’t start thinking in this way too. It’s standard practice in many firms to suggest discussing LPAs when advising clients about wills. Sure, structuring a pre-paid probate service that’s both attractive to the client and cost-effective for your firm in the long term would require a bit of work but it’s not impossible. And you might even want to consider partnering with local funeral directors.

In the 1990s, private client work was regarded as a bit dull by young lawyers mesmerised by the salaries on offer at City firms. Now, Britain’s fast-growing ageing population and the wealth it has accumulated collectively makes it the next battleground for legal services. Unless lawyers are part of the process from the start, they will lose out to more business-savvy organisations. But for firms embracing the spirit of change, it could also mark the return of the private client lawyer.