By Ben Furlong, Managing Director Estatesearch
Details of the first Labour budget in 14 years will be announced on 30 October 2024. Predictions about changes which may concern private client solicitors could include proposed updates to inheritance tax (IHT), capital gains tax (CGT) and pensions which may influence advice given to clients regarding wealth management and tax planning.
Specifically, such changes could influence estate planning, Will writing, and estate administration. For example, it may be beneficial for clients to update Wills to reflect any changes in tax-free allowances, ensuring wishes are met while minimising tax liabilities. Alternatively, practitioners may need to develop strategies to mitigate the impact of any higher CGT rates introduced, such as timing disposals or using reliefs.
However, firms can only work with clients proactively to adapt wealth management and estate planning strategies if they are able to prepare suitable communications and contact them in a timely manner. While we don’t yet know the precise details of the budgetary announcements due in a few weeks’ time, we do know that many legal firms may not be able to contact clients easily due to inaccurate data.
We know that the average person moves house eight times during their lifetime, so contact details quickly become out of date. Maintaining the accuracy of client records is a constant challenge for busy legal firms, and data integrity quickly declines if it is not proactively managed.
With 100,000 UK households moving house every month, if you are not regularly screening your data, a large proportion of your Will Bank data could be out of date. Our own research findings also suggest that up to 23% of Will Bank clients have already passed away and up to 17% have changed address. Out of date data will make it impossible to re-engage with these clients in a proactive and timely manner to invite them to revisit their Will in the light of any relevant changes announced the forthcoming budget.
We have developed our Will Bank Management solution to assist clients in reconnecting with their customers, identifying incorrect records and helping to source updated addresses and phone numbers. Our service also offers the benefits of ongoing notification of life events which may impact records. This helps to ensure the Will Bank remains up to date, ready for further proactive and timely client communication in the future.
Michael Tobin, Marketing and Business Development Manager, Grant Saw a leading firm of solicitors based in South East London explains: “Estatesearch’s Will Bank Management cleanse now means we have a clear and up to date snapshot of our Will Bank clients including an updated address. We can now be proactive with our communication, enabling us to get in touch with them before they need to get in touch with us. This puts us in a stronger position commercially but also means we can offer more appropriate and more timely services to our clients.”
Whatever changes are announced in the Autumn Budget, firms may well need to navigate updated and potentially complex new rules to help clients take advantage of available relief and to minimise tax liabilities in relation to estate planning. However, without being able to contact clients proactively, it will be impossible to invite them to discuss the relevant options available to them. Having an up-to-date Will Bank can ensure clients can be invited to review their Will and estate administration details at the appropriate time.
Book a demo and talk to a member of the Estatesearch team about our proactive Will Bank Management Service here.
Originally published in Today’s Wills & Probate.