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The Probate Debate 13

The Probate Debate: Part 1 of 5

P r ob ate Case Man gate Case Man ement
Probate Case Management
ement
versus Probate Accounts
v
rs
e
sus P obrus P
te Accounts
te Accounts
a
te Accounts
Probate Accounting or
Probate Case Management ࠮ ࠮ accounting for packaged p oducts such as ISAS raccounting for packaged p oducts such as ISAS
Many p
efer to p
robate
obate
r
obate p ofessionals robate p
r

and PEPS

softwa r e as “p robate case management.” obate case management.” and PEPS
listing the market value of equities and their
listing the market value of equities and their
Many probate professionals refer to probate software as ࠮ ࠮ listing the market value of equities and their

࠮ ࠮
“probate case management.” This is a misunderstanding of
obate softwar
re.
r p

the nature of probate software. does not want sha esrdoes not want sha
What is the cause of this misunderstanding?
What is the cause of this misunderstanding? ࠮ ࠮ auto calculating the net or g
What is the cause of this misunderstanding?
What is the cause of this misunderstanding?
auto calculating the net or g oss tax of equities, gilts ross tax of equities, gilts
and unit trusts
and unit trusts

Most softwa e r suppliers tosuppliers the legal marketplace e r a e not able or lack ࠮ ࠮ listing the fo eign sharlisting the fo res and calculating the tax due
es and calculating the tax due
What is the cause of this misunderstanding? under the double taxation ag eementrunder the double taxation ag
complexity
vigour
of
administration, which administration,
to
r
eplicate theeplicate
the
full
estate
is primarily an accounting function.accounting They the r efo e r supply the case ࠮
࠮ constantly ecalculating the money due to the r constantly ecalculating the money due to the
management tools that rathat e r eadily available to them which theywhich sell as
“p
obate case management.”
obate case management.”
r
Most software suppliers to the legal marketplace are not able or lack the vigour to
replicate the full complexity of estate administration, which is primarily an These a accountingThese a accounting functionsccounting functionsccounting clearly r r equirequir r aer ae dedicated
dedicated
clearly
accounting function. They therefore supply the case management tools that are r p obate accounting system. By contrast a a sp r eadsheet

thein

management.

usefula
tool
management

day
to
day

day

certainly

certainly

isIt
readily available to them which they sell as “probate case management.” is blunta blunt instrument. Only an e

experienced practitioner xperienced

deptha depth

with of knowledge can manage thismanage work in

the estate.
Case management is concerned with workflows, mailmerging and task such An experienced rp obate obate practitioner

mannea manne

management. It is certainly a useful tool in the day to day management of events. It Probate accounting involves a plethora of financial details, such as:
could e
the
on
manage
the work
even hypotheticallyven
!
case management case
fundamental
how
question toquestion
The
useful
ask
is:
is
does not however lend itself to managing the finances of the estate. back envelope. Not ecommended ra ecommended

of

courseof

an
without an a based on a r p ofessional databaseofessional r f om
accounting systemccounting
practice.
practice. logging the assets and liabilities
•
The fundamental question to ask is: how useful is case management without an • separating capital and income
accounting system based on a professional database from which it can suck financial • dealing with post death income and accrued income
data. One discerning solicitor likened it to “trying to catch fish without bait.” • paying the gas bill and funeral expenses
The r eality is that c case managementase is at best about 20%about of the
ounting. • dealing with post probate adjustments
• an easy way to account for an abatement of assets
The reality is that case management is at best • dealing with capital gains/losses and revaluations
themselves short. ou will still need a tool to log the assets andassets liabilities • accounting for packaged products such as ISAS and PEPS
about 20% of the estate administration - the • listing the market value of equities and their dividends
ently high
but
an
useful
estate.
r
inhe
an
r
Sp
risk
e
eadsheets raeadsheets
bulk of which is financial accounting. tool, in • • calculating the cash value to the beneficiary who does not want shares
auto calculating the net or gross tax of equities, gilts and unit trusts
• listing the foreign shares and calculating the tax due under the
n
Sp r eadsheets e r a not inheot r ently multiuse . r Stuck on t the solehe computer double taxation agreement
of the use they cannot becannot used on a central server by moby e r than one • constantly recalculating the money due to the residuary
Law firms who buy ‘probate case management’ are unwittingly selling themselves beneficiaries

being

one

user

timeaat

overwritten byoverwritten

without thewithout

dataof

user

risk

short. You will still need a tool to log the assets and liabilities of an estate. Many firms
over anothe
use spreadsheets to record the financials of an estate. Spreadsheets are useful but These accounting functions clearly require a dedicated probate accounting system.
an inherently high risk tool, in contrast to a probate specific accounting system. By contrast a spreadsheet is a blunt instrument. Only an experienced practitioner
eating managementating
data rfata
d
re
management eportsrmanagement eportsrmanagement
r f om
with iith
C
w
information usingnformation u
Cr
all
all
om
using allusing allsing
om separate sprm separate sp
cases f ro eadsheets is not feasible. with a depth of knowledge can manage this work in such a manner. An experienced
Spreadsheets are not inherently multiuser. Stuck on the sole computer of the user, probate practitioner could even hypothetically manage the work on the back of an
they cannot be used on a central server by more than one user at a time without the envelope. Not of course a recommended practice.
risk of data being overwritten by one user over another. askance Financial informationFinancial needs to be held inheld such a

likelyis

the
auditors.
law
The

alarmto

and

might look
society might
can
other
manner Financial information needs to be held in such a manner that it can easily be
understood by
easily
that itthat
be
any
Creating management reports with information using all data from all cases from understood by any other member of the team. In an efficiently run firm, work needs
separate spreadsheets is not feasible. needs to be easily delegated to a probate assistant when necessary. Otherwise taking on
r p
to beto
delegated
easily
obate assistant obate
a
to
new work is limited, and you will be in deep trouble if you fall ill and require an
࠮ ࠮ when necessar .ynecessar Otherwise taking on new work is
logging the assets and liabilities
logging the assets and liabilities
Inadequate management reporting is a significant risk factor for the firm, and is limited, assistant to pick their way through your spreadsheet.
ill
and youand
r t
deep
you
ouble ifouble
be
will
fall
in
࠮ ࠮
separating capital and income
separating capital and income
likely to alarm the auditors. The law society might look askance at such a practice, and r equi erequi an assistant to pick their way thway r ough your
࠮ ࠮
dealing with post death income and accrued income
dealing with post death income and accrued income
dealing with post death income and accrued income
and you definitely will not win Lexcel accreditation. sp readsheet.
An effective solution needs both case management and an accounting database,
eadsheet.
࠮ ࠮ paying the gas bill and funeral expenses working in harmony with each other. The result is a profitable private client
paying the gas bill and funeral expenses
࠮ ࠮ dealing with post p obate adjustments department. A number of probate managers have reported achieving gross profits
dealing with post pr
robate adjustments
࠮ ࠮ an easy way to account for an abatement of assets and an accounting database, working in harmony
an easy way to account for an abatement of assets
in excess of 70% for their department as a direct consequence of using the Isokon
࠮ ࠮ dealing with capital gains/losses and evaluationsrdealing with capital gains/losses and department. Adepartment. number of r p obate m

accounting system combined with an integrated Isokon case management
managers have anagers
Isokon their Isokon accountingIsokon a di system c using
component.
department asdepartment
ect c
r
consequence ofonsequence
the
combined withombined
an
integrated Isokon case management component.integrated Isokon case management component.integrated Isokon case management component.
For further information please contact: Gregory van Dyk Watson, Managing Director of Isokon Limited. furtherFor information pleasenformation contact: G re Dyk W atson, Managing DiManaging r ector of I Isokonsokon Limited.
egory vangory
i
For further information please contact: Gregory van Dyk Watson, Managing Director of Isokon Limited. Email: [email protected] or call 020 7482 6555.
r
[email protected] or call 020 7482 6555. Alte
.isokon.com.isokon.com
w
Email: [email protected] or call 020 7482 6555. Alternatively visit [email protected] or call 020 7482 6555. Alte natively visit [email protected] or call 020 7482 6555. Alte
Email: g
development
was
Dyk
van
Isokon
founded
Isokon was founded by Gregory van Dyk Watson in 1999. The company has invested 44,000 man hours in development Gbyfounded
Alternatively visit www.isokon.com W atson in 1999. The company has invested 44,000invested man hours in development
of the p oduct over the last 15 years.
of the product over the last 15 years.

of

is

usedisIt

36%
obate

cur

supplier softwa

the

by
leading
and Private

cur

rP

Private
for

company
law

Client
work.

The company is currently the leading supplier of software for Probate and Private Client work. It is used by 36% of law
The

of

Isokon was founded by Gregory van Dyk Watson in 1999. The company has invested 44,000 man hours in development of the product over the last 15 years.
estates, as well as basic estates.
estates, as well as basic estates.
estates, as well as basic estates.
The company is currently the leading supplier of software for Probate and Private Client work. Isokon is used by 36% of law firms who do private client work. It is used by
Isokon is based on an accounting database engine with an integrated Isokon case management component.Isokon is based on an accounting database engine with an integrated Isokon case management component.
Isokon is based on an accounting database engine with an integrated Isokon case management component.
Isokon is based on an accounting database engine with an integrated Isokon case management component.
Isokon is based on an accounting database engine with an integrated Isokon case management component.
Isokon is based on an accounting database engine with an integrated Isokon case management component.
more than 2,000 individual users. It is used for the most complex estates, as well as basic estates.
Isokon is based on an accounting database engine with an integrated Isokon case management component.