I Will if You Will

Last Will & Testament

Wills seem to be in the news again or at least twice on BBC Radio 4 this morning. Curiously, writing wills is regulated in Scotland but not south of the border. Most people do not get round to writing one including quite a few solicitors I have met, so there is a raft of rules the government has made up over the years so money and chattels can be dealt with when someone passes on. It would be chaos otherwise. Needless to say, these rules may not suit everybody and there are always horror stories like my earlier Will You, Won't You?

But here is another will story from Tony Millson, at Royds solicitors.

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David was a very understated guy, people just knew him as the quietly efficient company secretary always puffing on his pipe (in the days when one could puff away on a pipe in an office!). Mavis his wife, did some clerical work and they lived in a modest but well maintained semi-detached in the suburbs of South West London.

The company where David was secretary was now a household name - an international public company and he was getting paid to match with some significant share options. He and Mavis had married relatively late in life - his pipe smoking went with the confirmed bachelor image and he was now in his mid-fifties. They had no children, but he had the responsibility of his aged mother in a nursing home. David had a married sister with two daughters at university while Mavis had no family.



One of David's habits was a postprandial bath, but one evening when Mavis went into see him - he was dead - and he had not made a will. The semi-detached house had been David's before the marriage and was still in his name. Conveniently for Inheritance Tax, it was valued at £450,000 and on intestacy, this house (together with his personal chattels) amounted to the entitlement that Mavis had as his surviving spouse.

The remainder of his estate worth about £1,000,000, passed: one half to Mavis on a life interest only basis - after her death the capital of that half passed to David's mother (if she was still alive or, if not, to David's sister). The other half of the excess over the initial £450,000 passed to David's mother outright.

Doing the Right Thing?

By the time of David's death, David's mother dementia had reached such a stage that she did not understand that David had died - possibly happily. A few months later she herself was dead. It being a family tradition she also had not made a Will. The whole of her estate, including the half a million or so pounds she was about inherit from David's estate passed to David's sister. David's sister was embarrassed about this and believed that morally the money was Mavis's. Accordingly, because the deaths had taken place in fairly swift order, she was able to enter into a Deed of Variation relating to Mavis of her mother's half share of David's estate to the effect that that passed back to Mavis - incidentally it also saved something like £70,000 in Inheritance Tax.

It is not entirely clear what the moral of this tale is. In my experience, families rarely 'do the right thing' when money is involved. David's sister certainly did the right thing. Mavis has done her best, particularly for David's nieces, ever since.

However, this issue that was left to chance could easily have been dealt with by David having made a proper Will.



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In the same vein, if you have any old pension policies you might wish to check that your beneficiary details are up to date.


To read George's other blogs or if you have any comments or feedback, go to: www.georgeemsden.co.uk

George Emsden ACIB, DipPFS
The Cancer IFA

Adrian Traher

adriantraher-370818

I Will if You Will

Thanks for this George. The Legal Services Board reported today with a further consultation period. "We consider that the regulatory menu for the three activities - will-writing, probate and estate administration - must contain certain features to target the risks and detriments that the investigation has identified. These are: - a strategy and early action for consumer education; a mandatory register of authorised providers; - authorisation gateway checks including a fit and proper person test for ownership and control; - appropriate financial protection arrangements, especially where a provider has access to consumers' money, including indemnity insurance unless work from regulators and financial institutions avoids the need to hold consumers' money; - outcomes based code of conduct, with appropriate emphasis on sales practices; - a requirement that providers have an appropriately trained workforce a risk-based supervision strategy that targets regulatory action to protect consumers; - an enforcement strategy that encourages and creates incentives for compliance, deters non-compliance and punishes transgressions appropriately, including the levying of financial penalties; - arrangements to ensure each provider has an appropriate in-house complaints process; - and bringing all three activities within the jurisdiction of the Legal Ombudsman." The Institute of Professional Willwriters has all these items in place now and currently works in an economic environment where anyone can work without any of these things. IPW members are quite happy to be regulated by any agency who takes on the role. Let it happen at the earliest opportunity. Adrian Traher MIPW

1 comments

Claire Pitts

clairepitts-682281

I Will if You Will

Thank you for this article. It is one very near to my heart as my parents refuse to make a will, stating my sister and I have to sort it out, once they are gone. Claire

1 comments