Conduct and service

Residuary beneficiary complaintsThis year there has been considerable publicity about the need for solicitor-executors to treat residuary beneficiaries as if they were clients.

This means supplying them with cost information, progress reports and dealing with any complaints raised.

The rationale behind this was well illustrated in a recent complaint that reached the Office for the Supervision of Solicitors (OSS).

The solicitor in question was sole executor under the will and the complainant was one of four residuary beneficiaries, the others being his sisters.

The father had died in January 1998, leaving a simple estate to sort out - one bank account and one building society account.

When the estate had not been administered by July 1999 a complaint was lodged with the solicitor.

The solicitor responded explaining he needed to deal with any outstanding tax liabilities.

But the Inland Revenue had confirmed in June 1999 that there were no outstanding tax liability, so there was no apparent reason not to wind up the estate.

There was no sign of the estate being distributed by September 1999, and the complainant involved the OSS.

Despite the OSS writing to the solicitor, accounts were not prepared until February 2000.

To compound matters, after the complainant had involved the OSS the solicitors refused to correspond with him or provide a copy of the final estate accounts.

When the accounts were produced, through the third party offices of the OSS, they did not include any interest due to the estate.

The solicitor now made proposals to resolve the original complaint.

This overture was accepted by the complainant provided any interest due was accounted for - this, the solicitor refused to do.

The OSS adjudicator made a decision that effectively reduced the solicitor's costs to 100 and this decision was upheld on appeal.

This case highlights why the OSS takes the view that solicitor-executors should deal with complaints from residuary beneficiaries as if they were clients.

After all, what other course was open to the beneficiary if the solicitor or the OSS refused to get involved?

A full explanation of the responsibilities of solicitors in connection with the administration of estates, is given in [2000] Gazette, 10 February, 38-39.