Families are being reminded to always seek specialist legal advice when setting up a Will, in order to avoid unforeseen fees or complications later down the line.
Last week, a report in The Times revealed that some 1.5 million UK families who approached high street banks for ‘cheap’ Will-writing services in the 1990s and early 2000s could be at risk of being hit with thousands of pounds in hidden fees.
During this period, banks and other providers were advertising budget Will-writing services for a small fee – which appeared very attractive to British families who wanted to set up a Will at the time.
However, reports suggest that “sneaky” clauses were often written into the small print of contracts which, in some cases, gave banks the right to act as executor of the Will after the person passed away.
In recent days, media reports have emerged warning that this could cost UK families thousands of pounds when the person named in the Will dies.
This Is Money cites the example of Ms Barbara Morey, a nurse from Wolverhampton who took out a Will with NatWest approximately 10 years ago.
The 78-year-old, who re-examined her Will earlier this week upon hearing the worrying news, found that NatWest had the right to charge her a £1,500 administration fee for their executor service.
On top of this, the small print stated that the bank was entitled to a frightening 2.5 per cent of her total estate when she dies.
As her estate is currently worth approximately £220,000, this would cost her around £7,000 plus VAT, she found.
Meanwhile, The Times warns that the average UK family, which stands to inherit a state of around £500,000, will fare off even worse – being hit with some £12,500 in fees.
Justin Modray, of consumer advice website Candid Money, described the practice as “sneaky,” while other experts have warned that some high street banks are still offering these dubious services.
The news highlights the importance of always seeking specialist, independent legal advice when it comes to setting up a Will.