Probate costs set to fall by 'a third' as lawyers face competition

The licensing of chartered accountants to offer probate work follows from the deregulation of the legal profession in 2011. This began the process of opening up certain reserved legal activities to outside competition.

The government and the Law Society are identifying which activities should be deregulated, with probate becoming the latest. A statutory instrument issued in parliament in August allows chartered accountants to undertake probate in non-contentious cases subject to the passing of the necessary exams and being properly licensed.

UK accountancy firm Reeves, which has offices in London and the Southeast, is set to be among the first such firms to offer probate services. Sixteen of its accountants have already undertaken the necessary exams over the summer period and the firm is looking to be licensed with the Institute of Chartered Accountants in England and Wales (ICAEW) as soon as the necessary approvals are in place.

Solicitors typically charge 1.5 per cent of the value of assets left by a will or intestacy, and an hourly rate, as their fee. Clive Stevens, executive chairman of Reeves and a member of the governing council of the ICAEW, said: "I broadly expect this change will increase competition for non-contentious probate assignments and this should lead to a reduction in the cost of probate. For a typical, non-contentious estate this could be by as much as one-third, which is potentially very significant for consumers.

Stevens, who has already sat the licensing exam, said Reeves will be offering the service as soon as the ICAEW's licensing process is completed: "I hope that this will be by October this year."

He continued: "Probate work in non-contentious cases is straightforward, and something accountants will be comfortable with managing. It is largely an administrative process, and one that fits in well with the financial planning we already offer."

Stevens said he expects the government to come under pressure to open up other reserved legal activities, particularly notary services, to other professions. "There seems to me no particular reason why only lawyers and not accountants and others should be deemed suitable to witness documents, which is the current position."

At least 250 accountants have already taken the licensing exams. The ICAEW is expected to have its administrative framework in place to oversee applicants this month, allowing those who have qualified to start offering probate immediately.