Articles

The 2009 Probate Service statistics show a continuing decline in Grant applications

06/07/2010

Simon Barber, Case Manager, Title Research

Each year the Probate Service compiles a statistical summary of its main activity, the issuing of grants of representation in England and Wales. Figures for 2009 have recently been released and this allows probate practitioners to understand their legal sector in a wider context.

Winchester continues to lead the way

As most readers will know, probate registries do not have mandatory catchment areas. For example, if a deceased person was resident and died in Avon or Somerset, it is not necessary for a grant of representation to the estate be taken out at Bristol District Probate Registry (DPR); the personal representatives (PRs) could elect to extract the grant in, say, Newcastle if they so choose (for instance, if they themselves lived on Tyneside). Of course, the majority of estates are dealt with locally and this means that, to a greater or lesser degree, activity at DPRs does reflect the population of their region. This is one reason why the Probate Registry of Wales shows a lower level of activity than some of the DPRs in parts of England.

In contrast to this however, Winchester DPR continues to issue a greater proportion of grants extracted by solicitors at 15%. This shows that Winchester’s reputation for being efficient and helpful, particularly for more complex transactions (such as reseals) continues to be high amongst probate practitioners who have repeat business.

Rate of Intestacy

The death statistics for 2009 show a decrease in the death rate of 3.49% with 491,348 deaths registered compared with 509,090 in 2008. 196,245 grants of probate were extracted and 57,919 letters of administration. Adding in the 237,184 apparently intestate estates where no grant was extracted reveals a total of 295,103 intestate deaths. In percentage terms, we have for 2009 40% of deaths being testate and 60% intestate, almost identical to 2008 (where the split was 39/61 testate to intestate). This continues the previous trend of a slow increase in the rate of will making.

Personal v Solicitor applications

As in each year since 2007, the number of grant applications made by solicitors fell. In 2009 this figure fell by 9% to 165,000, which although a slightly smaller decrease from 2008 (when the decline was 10%) must still be a cause of concern, particularly given the 4% increase in personal applications which continues the slow but steady trend in this regard. This figure includes solicitors in private practice, and those employed by organisations such as trust corporations or banks.

The total number of grants extracted can be expected to have fallen overall, given the drop in the death rate as mentioned above. The percentage decrease in solicitor applications can be attributed to a number of reasons, including the recession which will almost certainly have encouraged consumers to attempt probate themselves, but the entry into the market place of the new players such as Co-op and ITC still does not yet appear to have made a major impact as some might have expected.

Further evidence towards the DIY approach can be found in the fact that 237,184 of the deaths registered in 2009 did not result in a grant application of any kind. Obviously a high proportion of these would not have required a grant due to being a modest estate for example, but how many of these estates has been dealt with by a well meaning family member, but resulted in mal-administration of some kind either through mis-distribution or avoidance of IHT?

In conclusion, the 2009 statistics show a continuing decline in solicitor applications for grants, only part of which can be attributed to the lower death rate. This continues to suggest that consumers are not just deserting the traditional high street practitioner, but that they may not be gravitating towards the new entrants to the market place. When the 2010 figures are published next year can we expect to see the decline in solicitor applications continue, or will the marketing by solicitors have recaptured some of the market?

The latest statistics from the Probate Service highlights the importance of marketing within the legal sector. Alastair Moyes of Market Law views probate as being a valuable access point to legal services, click here to find out more.

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The reduction in the issuing of grants overall can also be attributed to financial institutions relaxing their requirements on death. Often if a deceased person has less than £15000 with a particular institution, even though the estate may be worth considerably more, the bank, insurance company or even National Savings, pay out on signature of a declaration or solicitors letter advising of the death. Provided there is no real property involved it is conceivable that an estate worth £100,000 plus, could be administered (even though strictly speaking not correctly), without a grant having been obtained. I have also heard of cases where attorneys have closed bank accounts after death but have not notified the bank. Obviously this can lead to fraud which is not helped by some financial institutions and or their staff not understanding the concept of the estate as a whole as opposed to looking only at the investments they hold.
Submitted by CLIVE MARQUIS CARR on 06/07/2010 17:07:02
Although I say this without firm proof, mal administration is bound to increase. I have heard of banks telling people they can use EPA/LPAs to close down accounts of deceased customers, Clients who were clearly disappointed that relative left so much to charity and only distributed once they received letters from the charities after probate was obtained (one of my own cases)....think of those estates that don't go to probate. Poor training and decreased staff levels at banks contribute to these developments. Another impact is on the DWP Recovery From Estates who only investigate following probate or Stat Notices. Banks need to consider their role in all this. The way they discuss the process leads clients away from disclosing all the assets as they see it as being easier not to.
Submitted by Karl Taylor on 07/07/2010 20:17:30

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