Kings court fixed fee probate and executor services

FOR YOUR PROTECTION AND PEACE OF MIND

03/09/2010

William Feeny, Director at Kings Court, looks at some of the issues arising from BBC TV’s Panorama programme, screened in August 2010, which looked at the independent Will writing and Estate Administration sectors.

Anyone who watched the recent Panorama investigation broadcast on Monday 9 August on BBC One entitled “Wills – the Final Rip Off” might be forgiven for thinking that the show was an indictment of the Independent Will Writing Industry. The reality was that the programme focussed on 3 examples of problems caused by businesses that were offering Estate Administration services. In one example the individuals concerned (including a struck off solicitor) had been found guilty of fraud in Lincoln Crown Court and had been given prison sentences.

This latter example is undoubtedly a serious matter and the families and clients involved have little expectation of getting all their money back. Our Clients have a right to expect a highly professional safe and secure service and to receive fairly and on a timely basis everything to which they are entitled.

For your protection and peace of mind

Kings Court has placed this issue at the top of its agenda and sees the protection of clients as a priority. The questions that should be asked of any Estate Administrator are “What measures have you put in place to guarantee the safety of the money in the estates you administer?” and “How do you guard against professional negligence, fraud and dishonesty?” Clients should also ask about the safety of client money in the event of that the business goes into insolvency and, if a business is appointed as professional executor in a Will, what protection does the client have.

Here is Kings Court’s position on these important matters.

Protection against professional negligence, fraud and dishonesty
If we make a mistake in the administration of an estate, Kings Court is insured against the financial consequences to the estate of that mistake. Kings Court has professional indemnity insurance, arranged through Hiscox Insurance Company under Policy No HU P26 1682616 (16) which insures us for up to £2 million per claim. Our policy also covers the company against its liability for the consequences of any claims relating to fraud or dishonesty.

Sometimes a client may be asked if we are protected by the Solicitor’s compensation fund. This fund only compensates people who have suffered financial loss due to a Solicitor’s dishonesty or failure to account for monies received. Kings Court is fully covered for these risks under its own insurance.

Protection of client monies

In addition to our insurance arrangements, all of the money in each estate we administer is held in that estate’s individual designated client account. Each of these client accounts is unique to the estate whose money it holds and, although Kings Court Trust Corporation’s name appears on the account, the account is owned by the estate, not by Kings Court. For example, the client account relating to the estate of John Smith (deceased) would be named “Kings Court Trust Corporation client account: estate of John Smith (deceased)” and is owned by the estate.

Client bank accounts do not form part of the assets of Kings Court and are not available to creditors, receivers or liquidators in the event of Kings Court’s insolvency and our bankers cannot use the assets in them to offset against our own, or any other, bank accounts.

The effectiveness of Kings Court’s internal controls over client bank accounts is an essential part of the Board of directors’ responsibilities. The management team is accountable to the Board for operating its internal controls and demonstrating to the Board that it has done so.

Kings Court as professional executor

Kings Court offers a professional executorship service and a free support line to families at the time of the death of a member of the family. We do not sell to clients when they are writing a Will any service which commits the Estate of the person writing the Will to expensive Estate Administration services.

However many people do choose to appoint us as sole, joint or substitute executor in their Will. Since our first day of trading, we have always said that, if we are asked not to act as executor, we will simply step aside without charge and without fuss. Where we are asked to step aside, we continue to offer our clients as much support as they need through our dedicated Probate Helpline.

Kings Court welcomes regulation for probate services and believes that it is fully compliant with the anticipated requirements for regulation as it already has in place consumer protection measures equivalent to those required by approved regulators overseen by the Legal Services Board. We support more choice and more protection for consumers.

We also welcome the current discussions about regulation for will writing and support actions to protect the consumer that are proportionate and appropriate. Will writing is an important part of financial planning and inheritance management should not be left to chance by not writing a will.