15 December 2009
As supermarkets enter the legal field, we find out why you should never underestimate the value of a good lawyer.
In the midst of the January sales, there’s barely a product or service available on the High Street or online that hasn’t been heavily discounted.
But while everyone knows a half price cashmere sweater will still keep you warm, not all new deals are such good value.
A recent change in the law means that for the first time non-legal bodies, such as supermarkets, will be able to offer legal services. Many lawyers however, believe it’s fraught with danger and warn that what seems like a bargain could end up as a very expensive mistake.
Here, David Wilkinson, consultant and wills specialist at leading Thames Valley law firm B P Collins, explains why:
Q. What does this change in the law mean to the public?
A. The reforms introduced under the Legal Services Act 2007 enable businesses, such as the big supermarkets or motoring organisations, to provide legal services. It means customers could buy legal services in the same way they would a packet of biscuits or a breakdown service. It’s why the Act has been dubbed “Tesco law”.
Q. What type of services are they likely to offer?
A. Some services, such as wills, powers of attorney, divorce, prenuptials and other personal legal services are already available online and some websites also provide basic domestic or commercial contracts. We expect the newcomers to replicate these services and probably add some others.
Q. Isn’t it good to make legal services more accessible?
A. Yes it is, but our main concern is to ensure the public understands the legal services they buy from a supermarket will be provided on a very different basis to the ones obtained from a solicitor.
Q. Can you give me an example?
A. Take making a will, 50-60% of people in the UK don’t have one – so if the opening up of the market encourages people to make a will, that’s good. And, if those individuals have relatively few assets and very few beneficiaries, it should be fairly straightforward and a ‘supermarket-style’ service may be sufficient.
However, as some of these services will be provided online or through call centres, it’s essential that people know all the facts about their assets to ensure they get the right will, even seemingly straightforward decisions may have important ramifications for the distribution of an estate. People shouldn’t underestimate the requirement to read and understand detailed guidance on the websites before responding and we’re concerned they may not fully understand the nature of the questions.
What starts off as something very simple can quickly become more complicated and we’re worried these organisations won’t have the professional expertise available to advise clients in more detail, particularly at the prices they are planning to charge.
Q. What difference can you make?
A. We have many years of experience and a wealth of knowledge in advising individuals and families with large estates whose affairs are not straightforward. We meet all our clients to discuss their needs and offer them several options. If we feel a client needs a relatively straightforward will, then we will say so, but it’s very rare these days for anyone’s affairs to be that simple.
Where we add most value, however, is with clients who have businesses they wish to pass on through their estates; who want to make provision for assets to be held in trust until a beneficiary is considered mature enough to take ownership of the assets directly; or who want to ensure assets pass through a particular line. We also advise clients on the most tax efficient way of preserving the value of assets for beneficiaries, how foreign owned assets should be dealt with and how to ring-fence assets.
Very often we find clients don’t know what they really want until all the options have been explained to them – a simple tick box approach doesn’t provide this flexibility or identify alternative strategies for achieving a client's objectives.
Q. But isn’t this a much more expensive option?
A. Although you may think you will save money by using a cheaper will making service, the truth is it could cost you more in the long run. If you have significant and varied assets, then you may find those who you had intended to benefit will miss out, or that your wishes will be challenged, which may cause considerable heartache and expense for your executors and (intended) beneficiaries.
Q. So you'd always recommend that people use a solicitor to make their will?
A. I would always recommend that people consider carefully their needs and then decide how they should be met. What you can be sure of though is that a solicitor will provide you with a personal service geared to your specific needs.
If you would like to speak to a solicitor at B P Collins concerning your private affairs, please call 01753 279030, complete the online enquiry form or email privateclient@bpcollins.co.uk. |
