How technology supports the wills and probate are of law

Wills and Probate market in numbers

UK population over 65 increasing rapidly – nearly one in five people in the UK are now 65 or older (18.5%), up from one in six in 1999. [1]
Nine out of 10 solicitors prefer physically signed LPAs to digitally signed ones. [2]
The MoJ noted a significant increase in the number of Probate applications being made digitally with 46% of applications made online between October and December 2020 compared with 19% in the same quarter in 2019. [3]
The number of law firms and solicitors working in the Wills, Probate and Trusts sector has increased again in 2020 following similar increases in the previous two years. [2]
Market value growth in the Wills, Trusts and Probate market is estimated to have increased by 4.3% last year. [2]
The market is forecast to grow at an average of 4% a year from 2020 to 2023. [2]
Over three-quarters of Wills and Probate practitioners are expecting increased workload in the next 12 months. [2]
Number of UK adults with a Will is between 40-50%. [4]
Official statistics up to September 2020 for England and Wales registered a 15.9% increase in grants of representation in the same period of 2019. [2]
Legacy income now worth over 3bn a year. [5]

What trends or challenges has the Wills and Probate market seen during the last 12 months?

Technology utilised to solve practical challenges

The pandemic created many challenges across the legal industry. A big challenge has been the need to embrace technology and use digital communications to deliver services. The Wills and Probate area specifically, up until recently, had been quite adverse to change with much of the services provided delivered in a face to face environment but this could no longer be the case. The Wills Act 1837 provides that Wills have to be physically witnessed by two people and Lasting Powers of Attorney require one witness but there has been little choice but for practices to move away from traditional formalities and embrace change, including video technology and remote working.

Below are some examples of how technology has been implemented in recent times:

Video wills have become prevalent during the lockdown as the Ministry of Justice granted concession to allow them to be used to witness Wills being signed until January 2022.
Electronically signed deeds are also more widely used as the lord chancellor confirmed they have legal force in England and Wales which again shows how the sector is embracing modern technology and making things easier and more convenient for the client.[6]
New online lasting power of attorney service was launched last July to support those acting as a attorneys when contacting organisations in regards to their loved ones estates, e.g. banks. The online service speeds up the process as previously paper-heavy process would take weeks.
Finally, another big technological change seen recently in the Probate area specifically, is the centralisation of the Probate Service to the Courts and Tribunals Service Centre in Birmingham and the changes to the Non-Contentious Probate Rules to mandate the use of the online probate service. This move by the Ministry of Justice is part of a wider project to modernise the courts and tribunals service.

Increased competition from online businesses who aren’t ‘law firms’

With the move of more legal services online, such as Will writing, the sector has seen start-ups and other non-legal businesses enter the market increasing competition. A recent consumer survey found that over half of consumers still use a law firm when making a Will and over 80% when arranging Probate however new entrants are starting to take a growing share of the market[2]. This is clearly a concern for law firms operating in the Wills and Probate market with the IT Landscape Report 2021 finding that 12% of law firms believe online-only businesses that sell legal services like wills but aren’t law firms’ as a big commercial threat over the next 5 years, which is the third biggest threat overall.[7]

Increased volume of cases

As the pandemic took hold across the country, many lives were lost and people’s priorities changed. In the Probate area of law, grant applications generally follow deaths therefore 2020 applications were much higher than in 2019 due to the increased number of deaths. In total, around 260,000 grants are understood to have been issued in 2020, up from 237,130 in 2019.[8]

Furthermore, the pandemic changed consumers mindsets and priorities with many wanting to get their personal affairs updated. Many law firms have seen their clients start to focus on what they should have in place in case something happens to them and planning for later on in life therefore arranging Lasting Power of Attorneys (LPAs) and Wills. The increase in Probate grants and people wanting to ensure they have appropriate plans in place has lead to an increase in case for law firms and growth of the sector by over 4% last year.[2]

Increase in contentions

With the increased demand for Probate and Wills, law firms and solicitors have seen an increased workload in contentious Wills, Probate and Trusts. In some circumstances, a person has died intestate leading to more complex and contentious cases. In other cases, families are challenging how Wills are being executed and how the circumstances were deemed acceptable. One law firms saw the number of Wills being challenged by families more than doubling.[9]

Another potential reason for more disputes is that many people have felt the economic strain caused by the pandemic, lost jobs and now have reduced finances therefore more likely to challenge Wills which they feel they should be a part of or claim under the Inheritance Act 1975. This could be a result of a greater reliance on inheritance to pay their bills and help them live rather than treat it as an extra financial resource. One survey found that 26% of the population are using an inheritance for immediate costs such as paying off debts, paying rent, adding to household spending and covering costs of child education.[10]

Probate wait times increased and margins being squeezed

With the move to a centralised Probate service and increased grant applications, the Ministry of Justice has reported that grants are taking approximately seven weeks to be issued following submission. If a grant was stopped for any reason then it could take up to 12 weeks to process.[11]

The delays and growing time it’s taking law firms to process Probate cases is putting increasing pressure on their margins with more time, and therefore more money, being spent. Previously Probate was a process which would take only a few weeks but now, in extreme cases, it can take up to nine months. Not only does this mean reduced margins for firms but also creating more stress and anxiety for family and friends.[12]

How has the last year affected the market moving forward?

Continued contentions and claims against estates

As life returns to some sort of normality, the Wills and Probate market is expected to continue to see the number of cases increase. One likely cause is the rise in challenges against the validity of some video Wills as a result of failures to follow the correct procedures when writing the Will during the pandemic. This is expected to be a particularly challenge in regards to ‘DIY Wills’ which have been wrongly witnessed, are missing assets, lack legal knowledge or input and more. Furthermore, there are some concerns that Wills witnessed via video increase the chances of fraud or undue influences as you can’t see who else might be in the room at the time. All of these could lead to more contentions and potentially more complex cases for firms. The uncertainty around this area could also lead to increased professional indemnity insurance (PII) premiums for law firms.

Online and video services here to stay

The effective use of legal technology has been extremely important to many firms during the past year, allowing firms to adapt how they work, where they work and how they provide services to their clients. Many have realised that technology and legal software will remain key parts to their businesses moving forwards, allowing them to work more efficiently and profitability. Using virtual meetings allows for more meetings with clients and flexible meeting times such as after work or on weekends, at little or no extra cost. More importantly it’s allowing firms to engage more regularly and more effectively.

Given our lives over the last year has been spent on video calls and meetings, customers are much more comfortable and accepting of this method of communication and the result could be an opening up of the market with people more willing to consider services of firms who aren’t necessarily local to them. As a result, law firms now consider their technology stacks and investment plans to be even more important and a key element for them to remain competitive and increase profitability.

Continued growth of the Wills, Probates and Trust sector

The growth seen in the last year is expected to continue through to 2023 with an average yearly growth of 4%[2]. Increased demand during the pandemic, expected continued demand from Will challenges following and greater client awareness for later life planning would all of contributed to this. The number of charitable bequests is also expected to increase this year due to the greater number of deaths over the last year and delays in Probate with some reports expecting them to be as much as 50% higher in 2021 than 2020.[13]

Technology key to success now and in the future

What is clear is that legal technology has an important role to play for firms providing Probate or Will services. Firms in this area have had little choice but to embrace certain technologies or better use existing ones in order to continue practicing and providing services to clients. Moving forward, technology will continue to be a key enabler and will support firms to be more efficient, profitable and improve client experience. Furthermore, the creation of the online Probate portal and online Lasting Power of Attorney service are further indicators that the sector as a whole is moving to a more digital way of working.

Below are some key functions we believe firms will benefit from when looking for the right technology to implement:

The electronic signing of documentation through a case management system.
The ability to electronically store the video Wills and link to the relevant case.
Integrations to Will writing services such as Arken.
The ability to generate workflows and checks and balances to ensure that all elements of compliance, procedures, etc. are met to reduce the potential claims i.e. claims against validity of a Will.
Allow for the effective management of cases and, more importantly, the data contained within.
A case management system which populates the relevant IHT forms and produces estate accounts.
Time recording functionality and automated calculations to support accurate billing as you progress through a Will or Probate case. This could be even more important if the case is complicated and much time is spent working through tasks.
Technology which allows users to efficiently manage process, reducing the time it takes and therefore increase the profit margin.
Client portal to allow customers to see case progression and update relevant information without having to phone in or meet face to face.