Should banks act as executors?

Hewitsons has welcomed a new code for banks who sell Wills.

The Office of Fair Trading (OFT) approached the big four banks during 2010, following concerns that some consumers were appointing the banks as professional executors without fully understanding the likely costs and the alternative options.

Those banks have agreed to meet three new principles, to ensure customers are able to make well-informed decisions. This includes that consumers should not be encouraged to appoint a professional executor (the bank) unless it is clearly in their best interests. 

Solicitors who make Wills have always had a duty to act in the best interests of their clients, not themselves.

David Stallibrass, Director of OFT said: "The wrong decision when appointing executors could mean a potentially expensive professional service is chosen, when a family member or friend may be quite capable of handling the task either alone or with professional support. We are pleased that each of the banks has agreed to review its selling practices and marketing literature to ensure customers are getting the information they need to make informed choices."

The banks are currently reviewing their product literature and processes to put any necessary changes in place within the next six months.

How can we help?

Hewitsons offers a free online will service which allows people to take the first important steps in drawing up a will in just 10 minutes. By completing a series of questions concerning their family and financial circumstances, a lawyer from Hewitsons' highly rated Private Client team will be able to assess an individual’s situation and contact them to advise on the options available.

Click here for more information, or contact Partner Carolyn Bagley via email here or on 01908 247015.