Having a Bank as their Executor could be landing families with tens of thousands of pounds in Executor fees when their relatives die.
Up to 1.5 million people are believed to have signed up for Wills from Banks, with bargain priced Wills typically offered for free or as little as £75.
But in creating the Wills the wording used gave banks the right to appoint themselves as Executor and then charge up to 4% from an estate in legal fees.
For those where the Bank charges 4%, the family expecting an eventual inheritance of £500,000 from their two parents, risk paying out a total of £30,000 for the two estates of their parents because they will be charged on both the first and second estate with some of the assets being hit with twice the fee.
'Families are in for a huge shock when their loved one dies and they face having to hand a bank eye-watering amounts from their inheritance,' said James Daley of the consumer website Fairer Finance.
Some calculate that High street Banks can expect a combined £9 billion windfall from will-writing services!
Banks often offer the will-writing service as a perk for signing up for insurance or fee-charging current accounts.
When customers sign up for wills with banks they may not have understood the consequences of assigning executorship, and the percentage charge may have appeared modest.
Families can request a bank stands down from being executor, however the bank does not need to comply.
Our advice is to choose people you can trust as your Executors unless an Estate is complicated or contentious. The best choice is typically relatives and friends all of whom can then hire lawyers for a set fee after death to deal with any aspects that the Executors are unable to handle.
We can provide a reliable, efficient and reasonably priced Estate Administration Service working with dedicated staff to deal sensitively with the Bereaved and fully explaining the Process.