Executors

Reassuringly most of the audience at such talks have made wills, but there appears to be one recurring theme: many do not know who they have appointed as executors. Nor are they aware of the positives or pitfalls of appointing a solicitor as an executor, or the potential cost to their estate of doing so. Seemingly, it was not explained at the time of making their will. I may be naive, but I thought that when a professional person intends to charge for his services, is it not incumbent upon him to make that clear the basis upon which he will charge?

If, as appears to be the case, some solicitors choose to bypass such fundamental issues, it does little to enamour the testator’s beneficiaries when the time comes to wind up the estate. If proof of that is needed, visit any internet forum on will-making and there is invariably a barrage of abuse being aired on solicitors’ executor fees. I am reminded of a BBC1 Panorama programme on the non-regulated will writers who happily appointed themselves as executors and levied not insubstantial charges without explanation to the unsuspecting testators.

So, at a time when it could be useful for the law fraternity to distance itself from such practices, and as Dying Matters attempts to raise awareness of addressing death in a more open manner; it may be a fortuitous moment to join forces and for solicitors to rise above the more unscrupulous competition by offering transparency in their charging methods.

By candidly relaying fees associated with not just making a will, but also charges, as applicable, for will storage and fees for acting as an executor, it provides the opportunity to openly discuss the features of all aspects. Without such guidance, client care amounts to nothing, and testators may as well do the unthinkable and download a DIY will kit.

Insurers

Solicitors are not alone in glossing over financial issues surrounding death. I recently received the annual statement on my endowment policy which is due to mature shortly. I noted the list of figures along with the meagre profits bonuses. Clear enough, except at no point does it mention the sum which would be paid to my estate if I died before the policy’s maturity date. It’s a particularly important figure because, happily for my beneficiaries, it would more than double the sum quoted on the statement.

Having challenged the insurance company into offering transparent figures on its paperwork, thereby presenting clarity for executors and policyholders, it volleyed a response: seemingly most people have IFA’s who would deal with such things and the sum I am insured for is on the original (23 year old) paperwork.

Most executors will know to write to the insurance company to find out the sum insured prior to applying for probate, but some lay executors, who are unfamiliar with endowment policies, won’t which can in itself lead to misleading calculations when valuing the estate.

So what is to be lost in declaring openly the amount insured? The company claimed that it would be difficult to calculate the sum if the premiums had not been kept up to date. In this instance they have but, had they not, as policyholder, surely I have a right to know if I had, unwittingly, compromised the sum insured? In any event, this is an age where financial institutions can calculate a policy’s value to the farthing at any given nano-second. The FSA’s Principles for Businesses to give “due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading” appears to be lost on them.

The reality is that, as with the executor fees above, there is a reluctance to mention the D word and all of its implications, which does nothing to assist and everything to stymie the public both figuratively and financially. Whilst such avoidance can ease short term discomfort for all, long term it does nothing to dispel vagueness and misgivings.

Conclusion

No one enjoys talking about death, but that reluctance creates uncertainties and ambiguity. I am most likely stating the obvious, (and apologies for that), but such opaqueness should not occur at any level in relation to products or services associated with death and its consequences – particularly, given that it is a certainty that the testator or policyholder will not be around to challenge figures. Openness and transparency cost nothing and can only enhance the reputations of all who play a professional role in the financial implications of dying.

© Patricia C Byron 2011

© Patricia C Byron - Stellar Books

July 2011

Author of Last Orders; The Essential Guide to Your Letter of Wishes ISBN 9780956508904
Email: info@lastorders.org

Last Orders: www.lastorders.org

Dying Matters: www.dyingmatters.org