COMPETITION: should be 'wake-up call' to the profession


Probate solicitors could face a 'huge threat' from accountants who have been given initial approval from the Ministry of Justice (MoJ) to carry out wills and probate work.



The MoJ has approved applications from the Institute of Chartered Accountants in England and Wales (ICAEW) and Scottish counterpart ICAS to compete with solicitors, barristers and notaries to offer these services in England and Wales.



At present, accountants cannot prepare papers to support an application for probate or letters of administration. But the Courts and Legal Services Act 1990 ended the monopoly of the legal profession to perform such work. The act paved the way for groups such as the ICAEW to become probate-authorising bodies, but required enabling regulations that were not passed until 2005.



Stuart Murray, partner at Probates Direct, said: 'It's a further erosion of the work that has traditionally been in the hands of solicitors and could be a huge threat to the profession if large accountancy firms set up probate departments.'



He added: 'If accountants enter the probate market it should be a wake-up call to the legal profession to ensure it provides a quick, efficient and cost-effective service.'



Adrian O'Loughlin, chairman of the Law Society's probate section, said: 'As long as there's a level playing field we will be able to meet the competition, but if the insurance requirements for accountants are set at different levels from solicitors, we will be at a disadvantage.'



Peter Burton, head of regulatory policy at the ICAEW, said: 'Solicitors will continue to deal with probate applications from people coming off the high street and accountants will offer the service to their existing clients as part of their tax matters.'



Catherine Baksi