Research undertaken by Direct Line found that a significant proportion of probate lawyers feared for inheritances being locked or lost in digital accounts.
- 88% of probate lawyers believe digital banking has made it harder to identify all an estates assets.
- In the last 12 months probate specialists reported difficulty identifying all estate accounts in over a quarter of cases
- When administering an estate two fifths (38 per cent) of people surveyed did not know where a loved one held all their financial accounts.
A variety of contributing factors were reported with the leading issue being lack of physical statements or cards (62%), increased use of biometric security to access a phone or table (56%), and a greater number of financial service providers (47%). Additional factors included difficulty accessing the deceased’s email, a lack of discussion with family prior to death, people managing finances online and people simply forgetting where they hold assets.
More than a fifth of people reported not knowing where their spouse or partners financial assets are held, and almost two thirds (66%) did not know where their parents held funds. A lack of knowledge in respect of where the deceased held assets can create additional complexity for professionals. It introduces the risk of costs associated with assets or liabilities discovered after distribution, and the potential for disgruntled beneficiaries.
Services such as the Estatesearch Financial Profile Service employ technology to electronically check financial records and contact a wide array of financial institutions to help locate all of the accounts in an estate. Providing Executors, beneficiaries and family members with the peace of mind of a comprehensive and efficient search that mitigates against the risk of missed assets, and helping to ensure that all funds are re-united with their rightful owners.
Effective communication of potential risks to clients is essential to protect professionals providing an advice or service as well as helping you add value for clients. In partnership with sector experts we’ve drafted suggested wording to provide guidance and advice in drafting or updating client care letters. If you’d like more information please get in touch below.