A shocking one in three Wills in the UK is out of date, leaving over £1 trillion of assets at risk of ending up in the wrong hands, according to new research.
A report commissioned by Remember A Charity titled When WILL You Change Yours? reveals that 29% of people with a Will admitted it is out of date and intend to change it. And with the amount left in Wills now averaging £160,000, up to £1.1 trillion (equivalent to two-thirds of the UK’s GDP in 2011) could fail to reach the intended recipients. Staggeringly 70% of the UK population have not made a Will!
The West Midlands topped the list when it came to out of date Wills, with 48% of people surveyed saying their Wills needed to be updated compared with just 22% in the East Midlands and Wales. The report also highlighted strong regional differences in Will making. 53% of people in Scotland have made a Will, the highest in the UK, whilst only 39% of people in the West Midlands have done so.
Peter Watts, Solicitor & founder of glossLegal said, “Everyone should write a Will and ensure that it’s up-to-date by reviewing it periodically. The major lift events which should prompt a Will or review are marriage, separation, divorce, the birth of a child, a death in the family, or cohabiting”.
“I’ve sadly experienced many instances over the years where a valid Will wasn’t in place and the consequences have often been severe with the estate not being divided up as you would have wished, and the beneficiaries sometimes ending up with an entirely avoidable tax bill.”
A previous Will is automatically revoked in the event of marriage or a civil partnership in England and Wales, for example. In the case of divorce or the dissolution of a civil partnership, a bequest to a spouse would no longer be valid and fall back to the estate. Equally, children born after a parent has written a Will do not automatically become beneficiaries.
The UK is incredibly charitable with 75% of us regularly giving to charities in our lifetimes but only 7% of us currently leave charitable donations in our Wills. Nevertheless gifts in Wills are vital to many charities in this country, contributing around £2 billion every year.
A draft clause has been submitted by STEP to make it easier for Britons to leave charitable legacies or donations in their Wills.
The Society of Trust and Estate Practitioners (STEP) has published a draft model clause for Wills in response to proposals to reduce the rate of Inheritance Tax where there is a charitable legacy of ten per cent (10%) or more left in a will.
It is hoped that the introduction of this clause will encourage the widespread insertion of a donation in peoples Wills.
The act is also being encouraged by the Legacy10 campaign, which highlights that the work of charities is dependent on funding and people’s generosity.
Wendy Walton TEP, chairman of the STEP Technical Committee, explained that Her Majesty’s Revenue and Customs (HMRC) is aware that the number of people who will use a charitable legacy is dependent upon promotion of scheme and are thus encouraging the adoption of STEP’s clause.
“In publishing this draft model clause STEP seeks to encourage charitable giving by making it easy for people to take part in this initiative,” she added.
All the Wills which are created using the glossLegal website have the ability to leave a charitable legacy.
An adopted son will not be able to benefit from the probate process of his adoptive parent’s estate because of a Will writing error.
The appeals court ruled that Terry Marley could not inherit over Maureen and Alfred Rawlings’ natural sons because they technically died in intestate, Metro reported.
Mirror Wills had been made by the couple disinheriting their natural children and naming Mr Marley as their beneficiary.
However, they had signed each other’s Wills instead of their own during a mix-up at a solicitors’ office in 1999 which was not discovered until Mr Rawlings died in 2006, three years after his wife, meaning that they were not legally binding.
Although the Court of Appeal claimed there was “no doubt” that Mr Marley’s adoptive parent had wanted him to inherit, they had no power to correct the error.
Lady Justice Black said: “Unfortunately, that certain knowledge is not what determines the outcome of this appeal. The Will is therefore not valid.”
Mr Marley was unofficially adopted by Mr and Mrs Rawlings at the age of 15. He cared for them until they died. Mr Marley must now pay £25,000 in costs but the final bill may be higher.
“A judge has called for a change in the law on deathbed wills after an eight-year legal wrangle over whether a dying man’s sister offered him a ‘steadying hand’ as he signed all his possessions over to her.”
Read the full story on the Daily Telegraph.
Nearly two-thirds of Britons (63%) do not have a Will, with many people employing a “head-in-the sand” approach to them, according to a new study.
Investment managers Brewin Dolphin found that 57% of married couples do not have a Will, meaning they would have no control over their houses, savings or possessions if either of them were to die without writing a Will.
The main triggers for people writing a Will are said to be childbirth (18%), reaching a landmark age (15%), marriage (13%) or taking out a mortgage (12%). Divorce is also a factor for revisiting a Will!
The sudden death of a friend or family member can prompt people to draft a Will, and did so in 11% of the cases in the study.
Meanwhile, factors which were found to delay people writing their Wills are: not thinking they have enough assets or possessions to make it worthwhile (30%), thinking they are too young (24%) or simply seeing it as not important at the present time (another 24%).
A total of 13% think the idea is just too morbid to think about.
Charlotte Black, Head of Corporate Affairs at Brewin Dolphin commented: “Will making should definitely be on the 2012 resolution lists for 63 percent of British residents”.
“If they didn’t have a Will and died suddenly, their estate could go to a relative who they wouldn’t necessarily choose to benefit. The research shows many people deploy a head in the sand approach to wills.”
Making a Will Question: We have two dogs which we wish to leave to a rescue centre together with a capital donation. How do we deal with this?
Making a Will Answer from glossLegal: In glossLegal Will questionnaire you should leave a Money Gift to the rescue centre which will be the ‘capital donation’. You should also add in Funeral Wishes your wishes that the dogs, if alive, are given to the rescue centre, and that you are making a capital donation in Money Gifts. You can also edit your Will over time so that your Will(s), so the capital donation can be increased or withdrawn if the dogs predecease you, etc.
Making a Will Question: I have changed my name by deed poll so will I have to make a new Will, or is the one in my old name still legal?
Making a Will Answer from glossLegal: You do not have to change your name as your Will remains valid. However a new Will might be better as the Grant of Probate [official certificate] issued to the Executors will show your old name. This might make it more difficult to collect in assets e.g. close bank accounts & sell property.
Making a Will Question: I am currently separated and jointly own a house with my estranged husband which is currently being rented. Divorce proceedings have begun. I have named my two children (from a previous marriage) to be the beneficiaries, but is my estranged husband still entitled to all of my assets?
Making a Will Answer from glossLegal: You are technically married until a decree absolute. You can however sign a new Will which leaves your property to whoever you would like. The difficulty is that your husband could challenge the Will (in court after your death) until divorce financial proceedings are complete – on the basis he has not had reasonable financial provision. We suggest you do sign a new Will as it will be valid, and will continue to be so after decree absolute.
The advice to make a Will as soon as you have assets to leave behind has been reiterated by one organisation, because according to the Law Society, as many as one in three people die intestate (without a Will).
Paul Sharpe, the chairman of the Institute of Professional Willwriters, explained that the number of people writing a Will tends to fall during economic downturns such as those being experienced by many families over the last few years.
“Households tend to have more pressing needs on their disposable income,” he pointed out.
However, this can be a dangerous approach to take, as it may result in people dying intestate and their families having to get involved in expensive court cases to claim what should have been theirs in the first place.
Despite this, he suggested that Britons are heeding the advice to only seek a professional when getting a Will written, as he reported members being asked by customers about their regulated code of practice.
Earlier this month, Brian McMillan from The Society of Will Writers had warned it is important to look for credentials when choosing a solicitor, rather than simply going for the cheapest provider.
While this may cost more, it will undoubtedly give the client more for their money too and reduces the likelihood of any problems occurring with the document after it is drawn up, such as it being contested.
Peter Watts, a solicitor and founder of glossLegal also added that when speaking to a solicitor about writing a Will, it is important to ensure they are members of STEP, the Society of Trust and Estate Practitioners which is the foremost organisation for Wills and trusts. The entry requirements for the Institute of Professional Willwriters and The Society of Will Writers are fairly basic, and do not require members to be solicitors. To become a member of STEP has a far more rigorous set of examinations, but is open to all Will writing professionals and specialists.
Making a Will Question: Should I include property abroad in the will I make in the UK, or should I make a separate will in that country?
Making a Will Answer from glossLegal: The Wills automatically cover your worldwide property. This means that you do not need to specifically mention them. The reason for this is the International Convention on Wills, so UK Wills are recognised in other countries.
Having said that, the other country where property is located might have specific rules on who inherits which override the UK Will. For that reason it might be better to have a ‘local’ Will in that country, but care not to revoke/cancel the UK Will. There may also be death tax in that country. Either way, any UK Will to cover all property is better than none, especially as the foreign property might be sold before you die etc. The UK does not have to name foreign property – it is automatically covered and will be left as per the Will to main beneficiaries, unless stated in Specific Gifts.
