When considering end-of-life planning, one crucial step is preparing a will. A properly crafted will ensures that your assets are distributed according to your wishes, protecting your loved ones and minimising potential disputes. While many people choose to work with solicitors for this task, some opt to involve accountants, particularly if they have complex financial portfolios or tax concerns. Here, we’ll explore the pros and cons of using an accountant to help prepare a will.

Pros of Using an Accountant to Prepare a Will

1. Tax Expertise

Accountants specialise in tax planning and can offer significant insight into inheritance tax (IHT) implications. In the UK, estates over the IHT threshold can be taxed at 40%. An accountant familiar with your finances can help ensure that your will is structured in a way that reduces tax liabilities for your beneficiaries. This may include advice on trusts, gifts, or investments that can minimise the tax burden on your estate.

2. Holistic Financial Planning

Accountants often have a broader view of your financial picture, including assets, debts, and investments. This holistic understanding can be advantageous when preparing a will, as they can ensure that all financial matters are coordinated and that there are no overlooked assets. This is particularly helpful for individuals with complex portfolios or business interests.

3. Personalised Advice on Asset Distribution

Because of their familiarity with your financial situation, accountants can offer practical advice on how to distribute your assets. For instance, they can guide you on whether to leave assets to family members, charitable organisations, or into trusts that could provide long-term benefits.

4. Assistance with Business Succession Planning

For business owners, planning for succession is essential. Accountants often have experience in succession planning, ensuring a smooth transition of business ownership. They can work alongside solicitors to create a will that outlines your wishes for the business, helping prevent potential disputes among beneficiaries and business partners.

5. Continuity and Familiarity

Many people work with the same accountant for years, building a strong rapport. This continuity can be beneficial, as your accountant will already have an in-depth understanding of your financial situation. This familiarity can simplify the will preparation process, saving time and potentially lowering the costs associated with gathering and reviewing information.

Cons of Using an Accountant to Prepare a Will

1. Limited Legal Knowledge

While accountants are well-versed in financial matters, they may not have the same legal expertise as solicitors, especially concerning wills and probate law. A will is a legal document, and drafting one improperly can lead to complications or disputes. For this reason, many people still choose to work with solicitors, as they are legally trained to handle all aspects of will preparation and probate.

2. Potential for Higher Costs

Engaging an accountant for will preparation may involve additional costs, especially if they are working in tandem with a solicitor. Although accountants can offer valuable financial insight, the dual approach of having both an accountant and a solicitor review the will might increase the overall fees associated with the process. However, for complex estates, this additional cost may be justified by the benefit of receiving specialised advice.

3. Risk of Oversight in Legal Nuances

There are specific legal requirements and terms in will preparation that, if not met, can invalidate the document or lead to interpretation issues. Without legal training, accountants may unintentionally overlook critical legal terms or formalities that a solicitor would not miss, increasing the likelihood of complications during probate.

4. Potential Conflicts of Interest

An accountant advising on the will may be privy to information that could lead to perceived or actual conflicts of interest, especially if they are also managing assets on behalf of the testator (the person making the will). While most accountants maintain high ethical standards, the potential for conflicts can arise in certain cases, such as when family members question the motives behind certain financial decisions outlined in the will.

5. Reliance on Dual Professionals

In cases where the estate is complex, many people prefer having both an accountant and a solicitor involved in will preparation. While this approach leverages the expertise of both professionals, it can create confusion if there is a lack of coordination or if advice differs. Clear communication and collaboration between both parties are essential but may require additional effort and time.

Final Thoughts

For individuals with simple estates, it may be sufficient to work exclusively with a solicitor when preparing a will. However, those with complex financial arrangements, multiple properties, or businesses often find value in involving an accountant as well. An accountant’s expertise in tax and financial planning can be invaluable, providing a well-rounded view that complements the legal knowledge a solicitor offers.

Ultimately, the decision will depend on the complexity of your estate, your financial circumstances, and your willingness to manage the cost and coordination involved in working with both professionals. By carefully considering these factors, you can make an informed choice that will safeguard your legacy and provide clarity for your loved ones.