Dealing with probate causes financial issues for 25% of people

New research by Exizent has found that the estate administration process causes stress, frustration, financial issues and even mental health problems for the bereaved.

In its first annual Bereavement Index, Exizent has discovered that 25% of people dealing with the administrative side of bereavement suffered financial difficulties as a result, while 40% saw their mental health decline, with women (61%) twice as likely to be impacted as men (38%).

On average, it takes around five months to complete probate, but in one in 11 (9%) of cases it takes at least a year. More than half (52%) of those who recently dealt with probate said it took longer than they’d expected. In at least one in four cases (25%) the process was delayed, with 16% of firms saying between 75% and 100% of their own cases are delayed.

This all adds to the already overwhelming burden of the loss itself. Of those who recently dealt with probate for a loved one, 36% said it was harder than they’d expected. Overall, 87% found the process stressful – and of those, 20% found it extremely stressful.

Legal professionals themselves are also seeing how the administration involved when someone passes away affects people; 64% said their clients become visibly stressed by the process, with 39% saying that most clients dealing with bereavement need emotional support from someone within the firm.

The task of estates administration is complicated further when the deceased’s financial affairs are not in order. The Bereavement Index shows that 37% of accounts are only discovered during probate, and in one in 20 (5%) cases, no assets are known at the start of the discovery process. Most legal professionals (60%) say that on average, less than half of their clients have all their affairs in order when they die. And things are not helped by the fact that a third (33%) of people dealing with probate admit they knew ‘absolutely nothing’ about it before they started – just 4% knew ‘a lot’ about what they were about to face.

One-in-seven estate executors (15%) only learned of their assigned role after the person had died, which is worrying given 97% of solicitors rely on the knowledge of the executor and the documentation they provide to verify assets and liabilities. More than a third (36%) of us will be the executor of someone’s will at some point in the future.

Legal professionals themselves are well aware of the issues; 88% think probate is ‘slow and inefficient’ and 52% admit the time it takes is ‘unreasonable’. And while one in four are resigned to the fact it doesn’t work as efficiently as it should, 75% think there are things that could be done to improve it.

According to 78% of legal professionals, awaiting responses from institutions causes delays, with 31% saying this is THE single main cause; most (53%) have to wait at least four weeks for asset and liability providers to respond.

When asked what they think would make the probate process easier, both for themselves and their clients, 44% said better communication and relationships with financial institutions, 49% said an easier asset discovery process and 41% said better technology.

Nick Cousins, Founder and CEO of Exizent said “Death is a difficult time for everyone. And sadly, as we have discovered in our report, the processes that come with it can be lengthy, repetitive, and complicated, dragging things out for everyone involved. At an already challenging time, handling estates administration is an added burden for the bereaved, with legal professionals themselves admitting that the probate process is not fit for purpose.”

“We believe estates administration should be simpler, and that modern technology solutions can make this a reality. We are also pushing for ‘open finance’ for the deceased to make asset discovery much easier, because – as our research shows – this is a major cause of stress and delay.”