Unregulated probate companies are a growing presence in the estate administration market — and a recent case reported by the Law Society Gazette is a stark reminder of the risks they pose to grieving families. When someone close to you dies, the last thing you want to worry about is whether the person handling their estate can be trusted.
What Happened: An Unregulated Probate Company and £432,000 of Missing Estate Funds
The director of a company called Probate Specialist Ltd has been sentenced to a year in prison for contempt of court, after failing to account for £432,000 of a client’s estate money.
The company had been appointed to manage the administration of an estate following a client’s death in 2021. Executors only became aware something was seriously wrong when they discovered the company was facing a strike-off application at Companies House.
Legal proceedings were launched, the police were informed of a potential fraud, and a court order was obtained requiring the director to disclose the whereabouts of the estate’s assets. He could not — or would not — explain where the money had gone.
His explanation to the court, that a mysterious business partner had access to the accounts and must have taken the funds, was not accepted by the executors. He missed a final court hearing, was found in contempt, and was jailed. As of the date of reporting, no criminal charges had been brought. The estate funds remain unaccounted for.
Why Are Unregulated Probate Companies Allowed to Operate?
In England and Wales, probate is a “reserved legal activity” — meaning only regulated professionals (solicitors, licensed conveyancers, and certain other authorised persons) can apply for a grant of probate on behalf of others. However, the wider work of estate administration — collecting assets, settling debts, distributing the estate — is not regulated in the same way.
This has created a grey area that unregulated probate companies have moved into. Anyone can set up a “probate services” or “estate administration” business without being authorised by the Solicitors Regulation Authority (SRA) or any other professional body. There is no mandatory professional indemnity insurance, no Compensation Fund to fall back on, and no regulator to complain to if things go wrong.
That gap is exactly where cases like this one occur.
What Protection Do You Get With a Regulated Solicitor?
When you instruct a solicitor regulated by the SRA to handle an estate, you are protected in several important ways:
- Professional regulation. Solicitors are bound by the SRA Standards and Regulations. Misappropriating client funds is not only a criminal offence but an immediate disciplinary matter that can end a solicitor’s career.
- Client account rules. Solicitors are required to hold client money in a separate, ring-fenced client account. Estate funds cannot be mixed with the firm’s own money, and the account is subject to regular checks.
- Professional indemnity insurance. All regulated law firms are required to hold professional indemnity insurance, meaning there is cover in place if something does go wrong.
- The SRA Compensation Fund. If a regulated firm were to cause a financial loss through dishonesty or failure to account for money, the SRA’s Compensation Fund exists as a safety net for clients.
- Accountability. There is a named, qualified professional responsible for your matter. If you have a complaint, there are clear routes — through the firm, the Legal Ombudsman, and the SRA — to seek redress.
An unregulated company offers none of these safeguards.
Why Choosing a Regulated Solicitor Over an Unregulated Probate Company Matters
We understand that when you’re dealing with bereavement, cost can be a real concern. Unregulated probate companies often market themselves as a cheaper alternative to solicitors. But as this case shows, the cost of getting it wrong — financially, emotionally, and in terms of time lost chasing the courts — can far outweigh any saving.
At Burd Ward Solicitors, our wills and probate team handles estate administration for families across Wallasey, the Wirral, and Merseyside. We are authorised and regulated by the Solicitors Regulation Authority, and we treat every estate — large or small — with the same care and professionalism.
Frequently Asked Questions About Estate Administration
Do I need a solicitor to administer an estate?
Not always — if an estate is straightforward, executors can apply for probate and administer the estate themselves. However, many executors choose professional help to avoid personal liability for mistakes, and to ensure the process is handled correctly and efficiently. Where an estate involves property, business interests, significant assets, disputes between beneficiaries, or inheritance tax, professional assistance is strongly advisable.
Are probate companies regulated?
It depends on what they are doing. Applying for a grant of probate on someone else’s behalf is a reserved legal activity, meaning only authorised professionals can do it. However, the broader work of estate administration — collecting assets, paying debts, and distributing the estate — is not a reserved activity and can be carried out by anyone, including unregulated companies. This is why it is so important to check whether the firm or individual you are instructing is regulated by the SRA or another recognised body.
How do I check if a solicitor or firm is regulated?
You can search the SRA’s online register at sra.org.uk to confirm whether a firm or individual solicitor is authorised. Regulated firms will also display their SRA number on their website and correspondence. If you cannot find a firm on the register, that is a significant warning sign.
What happens if an unregulated probate company loses or misappropriates estate funds?
Your options are very limited. Unlike regulated solicitors, unregulated companies are not required to hold professional indemnity insurance, are not subject to the SRA’s client account rules, and are not covered by the SRA Compensation Fund. You may be able to pursue a civil claim, but if the company has no assets — or has been dissolved — recovering funds can be extremely difficult. This is precisely the risk illustrated by the Probate Specialist Ltd case.
What is the SRA Compensation Fund?
The Solicitors Compensation Fund is a fund maintained by the SRA that can provide grants to people who have suffered financial loss as a result of a regulated solicitor’s dishonesty or failure to account for money. It is a safety net that simply does not exist when you use an unregulated provider.
How much does a solicitor charge for estate administration?
Fees vary depending on the size and complexity of the estate. At Burd Ward we offer transparent pricing so you know what to expect from the outset. It is always worth asking for a clear fee estimate before instructing anyone — regulated or otherwise.
Can Burd Ward help if someone else has already started administering an estate?
Yes. If you have concerns about how an estate is being handled — whether by a professional, a co-executor, or another family member — we can advise you on your options and, where necessary, help you take steps to protect the estate. Please get in touch as soon as possible, as early advice tends to open up more options.
Need Help With an Estate in Wallasey or the Wirral?
If you have been appointed as an executor and aren’t sure where to start, or if you are concerned about the conduct of someone already handling an estate, we are happy to have an initial conversation. Get in touch with our probate team.
This article is for general information only and does not constitute legal advice. The facts of individual cases vary and you should seek professional advice tailored to your circumstances. Burd Ward Solicitors is authorised and regulated by the Solicitors Regulation Authority.