Exizent: A third of people now suffer financial difficulty paying for estate administration
New research conducted by Exizent, into current bereavement processes shows that the price to pay for losing a loved one could actually be steeper than the grief and sadness we already suffer, as the costs required to cover the processes that follow leave many of us vulnerable – a fact that is becoming more apparent year on year.
Since 2021, food, energy and fuel prices have all risen substantially. The annual cost of inflation is now the highest it’s been since 1982 and it seems there is no end in sight for the costs the UK public have to pay as a consequence of the fallout of COVID-19, the impacts of the Russian Invasion and new Government Policies that have brought rises in tax payments, among many other things.
Given that people are already struggling to sustain their previous standard of living, it’s possibly no surprise that the proportion of individuals struggling with the costs necessary to fund often unexpected costs like estate administration, has also increased.
Last year, research into the bearing of bereavement processes on consumers told us that 1 in 4 people suffered financial difficulty paying for estate administration following the loss of a loved one. Considering that financial difficulties contribute to our quality of life, this figure should have already raised much cause for concern and spurred action among professionals that play a part in the process, who could therefore be part of the solution. Yet in 2022, despite rising financial pressures on society, it appears nothing has been done by sector professionals to curb the costs left to grieving consumers, as now 1 in 3 (34%) find themselves financially unstable as a result.
This year’s Bereavement Index research shows a correlation between those that struggle financially and those that suffer mentally. Of those that struggle financially, 86% are more likely to have their mental health impacted, leaving critical outcomes at stake.
But considering the technological solutions in play today that are speeding up how legal professionals manage estate administration cases and driving down their operational costs, why aren’t legal professionals utilising these resources to help vulnerable individuals, particularly considering that the use of technology in the industry is renowned to benefit professionals too?
The financial responsibility of legal professionals
Our Bereavement Index research has shed light on a number of issues within the processes of legal services firms when it comes to handling bereavement cases. Issues that are likely to prolong case timeframes and add ample potential for risk within the process, both key factors that can increase costs to the consumer.
Within a large majority of firms, nearly half of professionals manage their bereavement cases in their own individual ways – meaning when handovers are necessary, as individuals take time off for illness and holidays, these handovers are likely to be lengthy – increasing the billable hours of legal professionals and thus, costs to the consumer. But should consumers really be the ones to pay for a lack of standardisation in the industry?
Another key contributor playing a part in high case costs lies in how most legal professionals rely on executor knowledge to verify assets and liabilities of a deceased, while they are grieving (the exact figure can be seen here). This responsibility is one that could be sped up, while bringing in more reliable case information, if legal professionals turned to data sources like Experian to attain this information quicker – and more accurately.
Finally, with many of today’s firms predominantly using manual methods to manage parts of the processes like data entry, as well as unprotected common office tools like Microsoft Excel to manage case information, many, it seems are at risk of human error and cyberattack – both causes of excess case timescales that have the potential to increase costs to the consumer.
Improving your customer’s bereavement journey can improve your firms’, too
Our research tells us that less than 1% of individuals know ‘a lot’ about estate administration before they’re required to do so. This tells us that many individuals are unaware of the cost implications of the process and as a result, are less likely to be prepared to cover them.
But whether prepared or not, a third of people do struggle to cover these costs, which could be minimised by firms taking responsibility to standardise the way they manage their cases to speed up collaboration between professionals, use software that gives case documents added protection from human error and data loss, and find more reliable data sources that puts less onus on the grieving individual, unlikely to recall all case data accurately during this time.
Society is already under a lot of economic pressure. Combine this pressure with the loss of a loved one, plus further unexpected costs caused by estate administration, and this could have lasting damaging effects on mental wellbeing. But, by adapting their own processes, legal professionals can play a part in the solution and help drive consumer wellbeing – and they won’t be the only parties that benefit.
Standardised processes, automated workflows and digital data attainment doesn’t have to come at a cost thanks to software providers like Exizent offering effective, scalable solutions for legal services firms managing estate administration. This price tag, combined with digital features that reduce manual labour means legal teams can help speed up case resolution while cutting down operational costs per case. Leaving time for legal professionals to manage more cases or spend more time providing personalised services to current clients at a time when empathy could go a long way in enhancing their wellbeing. What’s more, this could translate into brand advocates for your firm too.
Download the full findings from our 2022 Bereavement Index research
