Report highlights potential regulation diversion for solicitors.

In a recent report into the future of the UK Trust and Estate practice, it has been found that solicitors feel optimistic about the advent of Alternative Business Structures (ABSs), but concerned about the effects of regulation within the sector, the Law Society reports.

In the research carried out by the Society of Trusts and Estates Practitioners, solicitors predicted that although the advent of ABSs will cause the legal market place to be managed, structured and financed in a different way, this is not going to be such a negative thing.

The report suggests that ABSs will bring more work to the high street and will serve to raise awareness and educate the public on trust and estates issues. Growing optimism in the future of the profession was evident amongst the 284 respondents to the survey, many seeing the reform of legal services as an advantage for the consumer, with ‘Tesco Law’ raising awareness of the importance of having a will, lasting power of attorney and death benefits in trust.

As with recent Law Society research carried out by Oxera, this report also highlighted the likelihood of the market becoming increasingly specialised. The increase of people getting divorced or cohabitating outside marriage, as well as buying properties or working overseas means legal advice given under Trusts and Estates law will become increasingly complex.

The report however did raise a number of concerns regarding regulation and the future of the legal profession. Respondents of the survey suggested that tighter regulation of the profession as a result of the Legal Services Act 2007, could have heavy cost implications for solicitors, making it harder for them to compete. It was suggested by one respondent that solicitors are beginning to offer non reserved work and ceasing to practise as ‘solicitors’ in order to avert from the need to be regulated. Finding that they can do virtually the same work as before (minus the small number of ‘reserved activities’), they can avoid the need to be regulated whilst still giving legal advice.

Following on from this another concern highlighted was that of the numbers of unregulated will writers giving legal advice to consumers.  Helen Clarke, chair of the Law Society’s wills & equity committee referred to this as a huge challenge for Trusts and Estates practioners, the nature of the cases being that problems from poor advice will not be uncovered until many years after the will has been written. With regards to unregulated will writers, Helen stated “Regulating them is definitely on the Legal Services Board’s agenda… We can only hope that something is done quickly before more consumers suffer.”

Posted 26.07.10