A wills bank is a centralised storage system for original wills and estate planning documents, often used by law firms to manage and safeguard clients' testamentary documents.
Purchasing a wills bank can provide law firms with long-term client retention and business opportunities. However, it also comes with regulatory responsibilities under the Solicitors Regulation Authority (SRA) Code of Conduct and potential implications for your insurance.
In this article we explore the advantages and disadvantages of purchasing a wills bank, the compliance and insurance risks to consider, and how risk mitigation can help you overcome some of the disadvantages detailed below.
Advantages of a wills bank
Purchasing a wills bank can have many advantages for firms, including:
Client retention and long-term engagement – Holding clients' wills encourages long-term relationships and increases the likelihood they will return for estate updates or other legal services.
Revenue generation – Managing a wills bank can be a source of recurring revenue, often leading to the firm being engaged in probate and estate administration matters when the testator passes away. Clients are more likely to return to the firm when they need estate planning revisions if the firm holds the will.
Security and risk management – A wills bank provides a safe and centralised location for original wills ensuring proper safekeeping, reducing the risk of loss, theft, or unauthorised alterations, which could lead to liability issues. It can also assist in preventing disputes by ensuring that the most recent, valid will is readily available.
Operational efficiency – A wills bank streamlines document management, making retrieval, tracking and updating of wills more efficient, streamlining estate planning and probate services. It also reduces reliance on clients to keep their own wills safe.
Competitive advantage – Offering secure will storage can differentiate the firm from competitors who do not provide this service. The service can build trust and credibility with clients, showing commitment to safeguarding their legal documents.
Disadvantages of a wills bank
Despite its advantages, purchasing a wills bank could introduce significant challenges for a firm. Failure to manage wills properly could lead to professional negligence claims.
Initial and ongoing costs – Setting up and maintaining a wills bank requires investment in secure physical or digital storage solutions (fireproof safes, digital vaults, or offsite secure storage) along with the potential insurance, and administrative costs to protect stored wills.
Liability and compliance risks – The firm assumes responsibility for safekeeping, which can expose it to potential legal claims if a will is lost, damaged, or mismanaged.
Administrative burden – Managing a wills bank requires staff time to track, update, and respond to client requests, adding to the firm's workload. Maintaining accurate records and ensuring secure access can be resource intensive.
Client relocation or changing law firms – If clients move or switch firms, retrieving and transferring their wills can become a logistical challenge. Some clients may be hesitant to store their will if they are unsure about long-term accessibility.
Potential liability for lost or damaged wills – If a will is lost, damaged, or destroyed, the firm could be held liable for negligence. This risk increases if storage systems are not properly maintained or audited regularly.
Risk of firm closure or merger – If the firm dissolves or merges, transferring stored wills to another entity can be complex and may require client notifications. Clients must be informed, and proper arrangements made, which can be logistically difficult. Firms should consider obtaining a testators consent first before the sale or a transfer of a stored will, as there could be issues arising such as the purchasing firm charging higher fees for probate services thus diminishing the estate for beneficiaries causing complaints. There is also the concern of the passing of liability from the selling firm to the acquiring firm. The starting point from an insurance perspective is that if the will was drafted negligently, the legal liability for a negligence claim would rest with the will drafter and would not automatically transfer to the acquiring firm. However, it would be prudent for the acquiring firm to avoid holding themselves out as assuming any duty to review the will during the transfer. Having well drafted disclaimers are an extra safety measure to mitigate this risk.
Another point to consider where there is an acquisition, any wills where there is a provision for the ‘partners at the date of the death’ in the selling firm to be appointed as professional executors - the purchasing firm would need to consider how that transfer would be structured and the implications of this for the acquiring firm.
Compliance factors to consider
When deciding whether to purchase a wills bank, firms should carefully consider their responsibilities under the SRA Code of Conduct (opens a new window).
Rules relevant to the adoption and use of a wills bank include:
The duty to act in clients’ best interests (Rule 3.1), and to provide a clear explanation of the implications of storing their wills.
The duty to be clear about fees and services (Rule 8.7) to avoid misleading clients about costs. Clients should also be informed about retrieval procedures, potential fees, and what happens if the firm closes or merges.
The duty to not exert undue influence or restriction (Rules 1.2 & 1.4) on clients to store their wills with your firm or create barriers to retrieval. Clients must also be free to move their will elsewhere without excessive delays or charges.
Firms must protect client documents, prevent loss or unauthorised access, and ensure proper safeguarding (Rules 6.3 and 6.4). This includes preventing damage to wills, which may require secure physical storage or encrypted digital solutions.
Firms must have an appropriate system for protecting client assets and documents (Rule 4.2). Clients must also be able to access their documents without unreasonable delay.
The duty to plan for client document transfer in case of firm closure or major business changes (Rule 2.4). Continuity Planning (Rule 2.4 & SRA Accounts Rules (opens a new window) 2.5) Firms must have a plan for transferring wills if the practice closes, merges, or if the solicitor handling the wills retires or dies. Clients should be informed about what happens to their wills in such events.
Firms must also comply with any other legal and ethical obligations, such as GDPR if using digital wills storage.
Conclusion
Purchasing a wills bank can be beneficial for client retention, security, and revenue generation, but it also comes with financial, legal, and administrative challenges. If the firm has the infrastructure to manage it properly and complies with legal requirements, a wills bank can be a valuable long-term asset.
This article has been co-authored by Sarah White, Underwriting Manager, Professional Liability at HDI and Nicola Anthony, Risk Manager & Vice President at Lockton.
