1.5 million families face losing billions because their loved ones were sold rip-off Wills by banks
An article published in the Daily Mail on 15 June 2018 reports on how an estimated 1.5 million customers are believed to have signed up for the will writing service with high street banks in the late 1990s and early 2000s.
Whilst banks offered their services at very attractive rates; often as low as £75 or free. It has since been discovered that the small print often gives the banks the right to appoint themselves as executors and claim up to 2.5% of the estate in fees. Giving the banks an estimated windfall of £9 billion based on an average charge of 2%.
James Daley of the consumer website Fairer Finance said “These small percentages may seem reasonable at the time but they can add up to tens of thousands of pounds on a customer’s death.” Indeed the article explains that when customers signed up for Wills with banks they may not have understood the consequences of assigning executorship and percentage may have seemed modest at the time. However, the soar in house prices since the 1990s means that even those estates of people with modest incomes may attract large unexpected fees.
So what can you do about it?
If you were sold a Will by a high street bank either during this period or at a later date, it is extremely important the you review and understand the terms of the Will. In the event that the bank has been appointed as the executor of the estate you will need to ask yourself whether you consider the fee charged to be reasonable given the size of your estate and also whether it is necessary for the bank to carry out this role or whether it might be possible to appoint a family member or trusted friend. If you have any concerns, it is best to write to the bank and ask that they either reduce their fees or resign from their position as executor.
If you are unsure we’ll happily review your Will free of charge to explain the key terms. Click here to contact us.
The Daily Mail article really serves to highlight the number of instances where loved ones end up inheriting less than is intended as a Will is either out of date or the person making the Will fails to understand the terms of the Will. Was your Will prepared by a professional who has reserved the right to be appointed executor? Could a family member or trusted friend perform those services for free? If you are in any doubt or have any questions or concerns regarding your current Will or if you are yet to prepare a Will and do not fully understand the consequences of dying intestate, please contact us on info@fusionpartners.co.uk for a free consultation.