Probate intermediaries believe their clients are being treated unfairly by the system and are poorly served by the processes and platforms designed to help them, according to The Estate Registry.
They stated that reform is now urgently needed, with a call for the banks, energy firms and other service providers to have more dedicated bereavement teams, better online/digital infrastructure, and improved communications and transparency.
In a piece of research undertaken for The Estate Registry, 2,000 consumers and a panel of 200 independent financial advisors and probate solicitors were asked for their views on inheritance tax (IHT) and the probate process generally.
Almost two thirds (65%) of professionals say their clients are unaware of how the probate process works, more than three out of five (61%) believe the process takes too long, and a quarter (25%) that the process is difficult to understand. A fifth (21%) believe the process could also be made simpler if there was more information made publicly available; a similar number (18%) believe the process is unfair.
Beyond the core issues of complexity and communication, the lack of funds to pay HMRC was also a challenge, and one exacerbated by the length of time taken for probate to be granted. The research found that on average, the end-to-end process, from the initial notification to settlement, is taking 10 months. In the more complex cases, it can be well over a year before an inheritance is finally resolved. This is despite new figures from HMCTS suggesting it has cut the average waiting times for probate to be granted by half for all digital applications.
The idea of having a dedicated financial services product that advances cash against an inheritance was unanimously welcomed, preventing the bereaved from having to raid their own savings, take out a loan or borrow from family and friends. Greater use of legacy planning tools was also welcomed.
Of their clients, nearly three in five (57%) used the Government’s ‘Tell Us Once’ service and around two-fifths (39%) found the service useful. Interestingly, younger UK adults who have gone through this process were more likely to use the service (82%) and find it useful (49%) than those aged 55 or over.
Nearly three in four (72%) of UK adults agree that every bank and utility company should have a specific death notification service similar to the service provided by Government. In one case, a bereaved widow had to contact more than 20 individual organisations to inform them that her husband had died. Solicitors were also unanimous in their belief that all service providers and banks should use a private sector equivalent of the Government’s ‘Tell us Once’. Phil Hickson – SVP, Global Partnerships at The Estate Registry said that the probate process is crying out for reform:
“The consumer experience is mirrored by the professionals who recognise the need for a fully digitised online application process,” he says.
We need to create a more unified, user-friendly platform that would connect all parties involved, including HMRC, banks and probate registries to streamline document submission, reduce paperwork and allow for easier tracking of application progress. Investment is also needed in IT across all elements of the supply chain to reduce downtime and technical issues.”
