It’s regularly reported that too few people make a will, with 2014 figures suggesting that 57 per cent of UK adults have yet to do so.
Less well publicised are the issues that can arise when incorrect advice or the lack of advance planning can lead to unwelcome outcomes.
Palmers’ partner Lee McClellan said: “People making wills often say they want to ‘keep things simple’, which is understandable and, where possible, desirable.
“But people’s lives are becoming increasingly complex and failure to take fairly straightforward steps for the sake of keeping things simple could result in beneficiaries:
- losing their entitlement to means-tested benefits and having to spend an inheritance on day-to-day living
- finding that an untimely inheritance results in a windfall for an estranged spouse on divorce
- becoming involved in court proceedings over a post-death dispute
- seeing their inheritance spent on care fees for a surviving parent
- facing a larger inheritance tax liability than necessary;
“In appropriate cases, trusts can be used – whether within wills or, less commonly, created during a person’s lifetime – to avoid outcomes like these. Many people think of trusts as complex and expensive, but they need not be either and can result in a significant overall financial benefit to the beneficiaries concerned.
“Given that your will disposes of all your wealth on your death, taking professional advice is always a sensible step. With the use of deeds of variation – which in certain circumstances, can allow assets to be redirected to save tax or resolve disputes – under review by the government, getting it right in advance takes on even greater importance.
“This will never be more true than when you know that there are existing issues – for example, second marriages, an estrangement within the family or a beneficiary with a rocky marriage, financial or addiction problems or who is facing long-term care – which increase the possibility of post-death problems.
“For more information on how Palmers Wills, Trusts and Probate team can help, please contact us.”