LSB fails to back regulation of estate administration

Lawyers and willwriters have united in backing confirmation by the LSB that it has recommended to the Lord Chancellor that will-writing should be regulated, while expressing their frustration that there will be no similar recommendation for estate administration.

The LSB proposed that estate administration should be regulated in September last year. Some of the strongest criticisms of the LSB’s change of heart came from its own consumer panel.

Elisabeth Davies, chair of the panel, said: “It’s very disappointing that the LSB has ultimately decided not to recommend regulation of estate administration activities at this time.

“While unregulated businesses may currently have a small market share, the damage they can cause to beneficiaries – either through fraud or poor service – is potentially huge.

“Dealing with an estate can involve life-changing amounts of money, but this decision will leave people without a safety net should things go wrong, and at a time when they are feeling at their most vulnerable.”

Davies said that fast progress would be needed on the self-regulation of will writing, including measures to reduce fraud and the involvement of LeO.

Lucy Scott-Moncrieff, president of the Law Society, said: “We submitted evidence to the LSB of people who have been prosecuted for running off with estates, among other problems that have been caused by unregulated people doing this work.

“At the moment unregulated individuals are charged with distributing considerable sums of money. It is becoming more difficult to assist consumers to identify reputable service providers. The evidence hints at many more cases where beneficiaries do not obtain what they should.”

She added: “Choosing a solicitor ensures a high level of service and expertise plus guaranteed consumer protection. Regulation of all providers of will writing services will only be effective if it is of a similar standard to that already applied to solicitors.”

The Institute of Professional Willwriters said it was disappointed that the LSB had not agreed with the consumer panel that the administration of a deceased person’s estate should be regulated.

A spokesman said: “There is a huge risk for consumers because this process involves handling money and assets belonging to a deceased person.

“These sums can often amount to hundreds of thousands of pounds and are susceptible to loss due to fraud or theft. We will continue to work to prove this conclusion is wrong and will continue to campaign for estate administration to be regulated.”

The LSB said it had recommended that the Lord Chancellor amend the list of reserved activities to include will writing, but not estate administration or probate, which is already regulated.

A spokesman said the umbrella regulator had “considered carefully” reports of fraud in estate administration but “has concluded, based on available evidence that statutory regulation would not be effective in preventing what amounts to criminal behaviour”.

The LSB said that instead it was recommending a range of initiatives including voluntary schemes to promote standards and improving information for consumers.