Our RSS Feed will keep you up to date with all that is happening in the world of Wills, Probate & Estate Planning. We will keep you up to date with law changes and anything we feel you need to know with regards to planning your Will or Estate. http://www.iwc-ltd.co.uk Copyright IWC Estate Planning & Management Ltd http://blogs.law.harvard.edu/tech/rss Wed, 9 Sep 2009 22:14:19 +0100 admin@iwc-ltd.co.uk Wed, 9 Sep 2009 22:13:11 +0100 tonycrocker@iwc-ltd.co.uk http://iwc-ltd.co.uk/images/iwc-logo.gif http://www.iwc-ltd.co.uk For Wills, Probate & Community Care 118 49 One of the key things you will need to decide when you make your Will is who to appoint as Executors – the named individuals who will organise your funeral arrangements and administer your Estateafter your death. It is common to use relatives or friends in this capacity but obviously prior consent must be obtained from the individuals concerned as this is a hugely responsible role. With this in mind, you may also want to consider using an experienced probate professionalas part of the executor team. http://www.iwc-ltd.co.uk/article-the-cost-of-probate.html Tue, 27 Jul 2010 00:00:00 +0100 An Estate plan is essentially several legal documents brought together to guide nominated persons through decisions you have made about the end of your life. In specific terms, a Will, a Living Will and a Power of Attorney all need to be incorporated into the Estate plan. Trust documents may also be included in cases where they are needed. http://www.iwc-ltd.co.uk/article-what-is-an-estate-plan.html Sun, 18 Jul 2010 00:00:00 +0100 Most of us work our entire lives to build up a nest egg for our retirement, with hopefully a little extra put aside to pass down to our families in the form of inheritance. What a shame then, for that money to be suddenly swallowed up, should we need to move into a care home or nursing home in our twilight years. Around 70,000 of us find ourselves in this exact same situation, each year, with this number set to rise. http://www.iwc-ltd.co.uk/article-worried-about-care-home-fees.html Wed, 14 Jul 2010 00:00:00 +0100 When writing your Will, one of the questions which arises if you have children under 18 is who will care for them after your death? Generally, it is agreed that the children will remain with the living parent. However you must consider what would happen in the awful event of both biological parents dying. Clearly, this is an unpleasant issue to contemplate as we all hope to see our children safely into adulthood and beyond. However, making appropriate provision in your Will needs to be considered and is the responsible thing to do as a caring parent. http://www.iwc-ltd.co.uk/article-how-to-appoint-a-guardian.html Thu, 01 Jul 2010 00:00:00 +0100 When writing a Will many people are concerned with the passing of their possessions and money after their death but some may be considering what happens to their body after they die. A previous article discussed the way funeral provisions are contained within a Will and how there is no ‘property’ in a body so it cannot be a binding ‘gift’. After death some clients may be considering donating their body for medical research purposes. This is quite different to electing to be an organ donor as it means the whole body can be retained by the medical institution for at least 3 years. http://www.iwc-ltd.co.uk/article-an-alternative-gift.html Fri, 25 Jun 2010 00:00:00 +0100 The problem with out of date Wills You should always make sure that your Will is updated whenever your family circumstances change – if you are subsequently divorced, have more children or sell your home, for example. http://www.iwc-ltd.co.uk/article-the-problem-with-out-of-date-wills.html Mon, 14 Jun 2010 00:00:00 +0100 Valuing an Estate for probate? You’ve been appointed an Executor or Personal Representative for a deceased person’s Estate. One of the first things you will need to do before the proceeds can be divided up and all bills paid accordingly, is to reveal the entire value of that Estate. http://www.iwc-ltd.co.uk/article-valuing-an-estate-for-probate.html Mon, 07 Jun 2010 00:00:00 +0100 Many of our clients have animals and pets that will require ongoing care after their death and it is important that you give some thought about this when writing your Will. http://www.iwc-ltd.co.uk/article-legacies-for-pets.html Fri, 28 May 2010 00:00:00 +0100 In a recent legal battle a couple sought to rely on the fact that they were promised an inheritance as a reason to occupy a property. Mrs Thomas and her husband had occupied half of her mother’s farmhouse for almost 10 years and refused to move out despite being served with a notice to quit which expired in 2008. http://www.iwc-ltd.co.uk/article-promised-inheritance.html Fri, 21 May 2010 00:00:00 +0100 An amendment to the Wills and Succession (Jersey) Law 1993 has been recently approved by the States of Jersey which gives succession rights to illegitimate children. Where a person who is domiciled outside Jersey owns assets there the law dictates that a separate Grant must be obtained. The only exception is where the total value of the assets held in Jersey is less than £10,000 however, as in the UK, the individual institutions have the discretion to request that a Jersey Grant is obtained http://www.iwc-ltd.co.uk/article-jersey-succession-law.html Sun, 16 May 2010 00:00:00 +0100 If you or a loved one has recently been diagnosed as having Alzheimer’s Disease, it is vital that a Will is drawn up as soon as possible, before the illness can progress to the stage whereby you are no longer mentally capable of making such decisions. http://www.iwc-ltd.co.uk/article-making-a-will-with-alzheimers.html Tue, 11 May 2010 00:00:00 +0100 http://www.iwc-ltd.co.uk/article-diy-probate-could-cost-you-more.html Thu, 29 Apr 2010 00:00:00 +0100 In the event of a wrongful death a claim may be bought by the estate of the deceased and the deceased’s dependants for compensation under the Law Reform (Miscellaneous Provisions) Act 1934 and the Fatal Accidents Act 1976. http://www.iwc-ltd.co.uk/article-fatal-death-claims.html Fri, 09 Apr 2010 00:00:00 +0100 The government have decided that the current threshold of £325,000 for Inheritance Tax will remain in place until 2014-2015. Although it was originally agreed that the threshold would increase to £350,000 as laid out in the 2007 Finance Bill, the figure has now been frozen for the second time... http://www.iwc-ltd.co.uk/article-iht-threshold-frozen.html Sun, 04 Apr 2010 00:00:00 +0100 A recently decided case has put a modern gloss on the test for testamentary capacity established by Banks v Goodfellow in the 19th Century. Key v Key [2010] concerned a challenge to the Will of an 89 year old testator whose instructions were taken by a solicitor just a week after his wife of 65 years had died. http://www.iwc-ltd.co.uk/article-banks-v-goodfellows--capacity-test.html Mon, 29 Mar 2010 00:00:00 +0100 More reports have been published surrounding the Government’s plans to introduce a ‘death tax’ to fund elderly care. The 10% tax on death estates would leave many families with large bills to pay in addition to the 40% inheritance tax already due on estates. The tax will hit middle income families the hardest and would be payable whether or not their deceased loved ones had required care or not. http://www.iwc-ltd.co.uk/article-death-tax-plans.html Thu, 25 Mar 2010 00:00:00 +0000 Deed of Variation are commonly used to vary the distribution of a deceased’s estate as a means of avoiding Inheritance Tax. This is achieved by varying the provisions of a Will or intestacy in favour of an exempt beneficiary or permitting a beneficiary to ‘gift’ their inheritance to someone else without it amounting to a Potentially Exempt Transfer. http://www.iwc-ltd.co.uk/article-deed-of-variation--tax-planning.html Fri, 19 Mar 2010 00:00:00 +0000 Estate planning should be considered by all married couples but there are particular considerations that should be applied for a couple where one or both parties have been married previously..... http://www.iwc-ltd.co.uk/article-second-marriages.html Sun, 14 Mar 2010 00:00:00 +0000 Every death that occurs in England and Wales is required to be registered by statute and registration must take place with the registrar in the sub-district in which the death occurs..... http://www.iwc-ltd.co.uk/article-regsitration-of-a-death.html Tue, 09 Mar 2010 00:00:00 +0000 The deceased died in 2004 after allegedly making a Will leaving his entire estate to his sister. The Will was witnessed by two nurses. The sister died having already obtained probate of the deceased’s Will and left her estate to her only child. Other family members of the deceased sought a revocation of the Grant of Probate and asked that the Will be pronounced invalid. A handwriting expert concluded that the signature on the Will was not the deceased’s and the claim was allowed. http://www.iwc-ltd.co.uk/article-barrett-v-bem-and-others-2009.html Sat, 06 Mar 2010 00:00:00 +0000 Court of Protection to Review Rules Sir Mark Potter, the president of the Court of Protection, is setting up a committee to review the Court of Protection Riles 2007 and the Practice Directions and forms that accompany them. The review is the result of complaints that the Court processes are too complicated and formal, especially where matters are non-contentious and are straightforward financial matters. http://www.iwc-ltd.co.uk/article-court-of-protection.html Tue, 23 Feb 2010 00:00:00 +0000 While it is common knowledge among many people that a Will is revoked by marriage, and this is enshrined within s.18 of the Wills Act 1837, the subject of extending this revocation to Civil Partnerships has only just been litigated. The end of 2009 saw a case reach the Courts involving the estate of the late Australian rock music executive Peter Ikin. Mr Ikin died suddenly in November 2008 at the age of 62 just a month after entering into a civil partnership. Following his death probate was granted to a Will made in August 2008 which named his civil partner, Frenchman Alex Despalliers, as the main beneficiary. In March 2009 lawyers lodged a High Court claim that the 2008 Will was a forgery, particularly as the original could not be found and Mr Despallier claimed it was stolen in a burglary. The lawyers sought an order that a 2002 Will made by the deceased should be followed instead. The High Court swiftly ended the arguments over which Will should be followed by stating that Mr Ikin had died intestate. Automatic revocation of a Will by marriage under s.18 of the Wills Act takes place even if there was no intention that the Will should be revoked. The Court ruled that both the 2002 Will and the 2008 Will had been revoked by Mr Ikin’s subsequent civil union. To avoid further costly court action a settlement was reached out of court which saw Mr Despallier receive £500,000 of the estate, the rest going to family and friends and charities supported by the deceased. Rectification of Codicil The High Court have agreed to a rectification where it was proven that a codicil was incorrectly worded and did not comply with the deceased’s intentions. The codicil, made in 2004, was intended to pass money that the deceased had received from her own mother’s estate to her six grandchildren. Because of the wording used in the document the gift did not take effect because her husband had predeceased her. The Court heard that it was the deceased’s ‘clear and express intention’ that the gift should go to the grandchildren whether her husband died first or not. The rectification was not opposed by the children of the deceased (who would inherit in their place) but consent was not given by the step-children although no reasons were given for their objection http://www.iwc-ltd.co.uk/article-is-a-will-revoked-by-a-civil-partnership.html Sun, 21 Feb 2010 00:00:00 +0000 More statistics have been released by the Office for National Statistics which show provisional marriage rates for 2008 which represent the lowest numbers since 1862. Figures show that for every 1000 single men age 16 or over just 21.8 got married in 2008. This has dropped from 22.4 in 2007 and 31.1 in 1998. The number of marriages registered in England and Wales during the year currently stands at 232,990 (although this may increase slightly before official figures are released next year). The figures have prompted more calls from groups such as ‘Resolution’ to give unmarried couples more legal rights. Their views echo the rights which would be granted by a new Cohabitation Act (the Bill is currently progressing slowly through the House of Lords) and the proposals for new intestacy laws giving more rights to cohabitants. They state that ‘the majority of people don’t understand that living together does not give them any financial protection...which leaves countless people vulnerable to financial hardship’. As any change to legislation is likely to be a long way off it is still vital that cohabitants make a Will which provides for their partner in the event of their death or, conversely, protects their estate for the beneficiaries they wish to inherit, rather than waiting for the legislation to be changed http://www.iwc-ltd.co.uk/article-marriage-in-decline.html Thu, 18 Feb 2010 00:00:00 +0000 The Government have announced that they are opting out of the European Commission's proposed regulation on succession and wills. This means the UK will not be bound by this regulation when it is brought into force. Lord Chancellor Jack Straw reported that hundreds of thousands of UK citizens live and work in other EU member states and millions of others enjoy holidays in the EU. The diversity of rules and systems that apply to succession in different member states can make for considerable complications where a person owns property across borders. In principle therefore, efforts to simplify and clarify the rules that apply to international successions could produce huge benefits for UK citizens, and the Government are strongly supportive of the project in principle. However, there are potentially significant problems identified with the proposal that the EU Commission has published. The Commission’s proposal would allow owners to choose between the law applicable in their country of origin or their place of residence, would ensure that the rights of heirs are better protected. The Commission also wants to introduce a harmonised European certificate of succession that would ensure that the status of heirs and executors is recognised across the EU. That consultation document highlighted two key problems. The first, and most difficult of those, was "clawback", which describes a legal mechanism where gifts made during a person's lifetime can be recouped after their death. The introduction of this concept into the UK could create major practical difficulties, particularly for the recipients of such gifts including charities. The second key concern was the proposal's reliance on "habitual residence" as the sole connecting factor, that is, the factor of a person's circumstances which determines when the regulation's other rules apply. Using "habitual residence" in isolation in this way could mean that the relatives of anyone who lived abroad for a relatively short period of time and then died there, would find their estate was subject to a law with which they had no real connection. That could lead to unforeseen and unfair outcomes. The Ministry of Justice's recent public consultation confirmed that these issues are widely considered to be of very significant concern. A report of that consultation will be published in due course. The Government have concluded that the potential benefits of this proposal are outweighed by the risks and have therefore decided that the best course of action is not to opt in to the proposal and the UK will therefore not be bound by the outcome. The Government intend, however, to engage fully with the forthcoming negotiations between member states on this proposal, with the aim of removing the points that currently cause concern and to deliver further improvements for citizens with links and assets in more than one country. If that can be achieved, the Government could then decide to seek to adopt the final regulation. That will be considered and consulted upon as appropriate at that time. http://www.iwc-ltd.co.uk/article-government-opt-out-of-succession-rules.html Sun, 07 Feb 2010 00:00:00 +0000 Protective property trusts in Wills are becoming a popular estate planning tool, largely due to the decrease in use of the Nil Rate Band trust and the more aggressive nature of local authorities when assessing for care fee liability. The trust, used in conjunction with a severance of tenancy, place the deceased share of the property into trust for future beneficiaries and grant a life interest to the surviving spouse. The nature of the trust allows the survivor to remain in the property, often with a power to sell and purchase alternative accommodation. Should the survivor need long term care in the future the assessment by the local authority can only take into account the survivors share of the property; the other share being protected in the trust. Care is needed when drafting the trust to ensure that it is effective. We have come across a number of Wills recently where the ultimate beneficiaries of the property (after the expiration of the life interest) have not been named and the property is left to be dealt with under the residuary provisions in the Will. This is perfectly acceptable where the life tenant and the residuary beneficiary are not the same person. Of course, in the majority of cases, the surviving spouse is granted both the life interest and the first level of residue. A common misconception is that, because the life interest will terminate on death the provisions in the second level of residue (often leaving the estate to children) will take effect. This is not the case. To be entitled to the residuary estate a surviving spouse is normally only required to survive for the survivorship period before obtaining a vested interest in the residue. We have now seen Counsel’s opinion on the effect of leaving the reversionary interest to residue where the life tenant and residuary beneficiary are the same person. Where the surviving spouse holds both a life interest and a vested interest in the remainder of the property the two interests will merge. This concept was explored in the case of Re Bellville [1964] and means that the spouse is absolutely entitled to the deceased’s share of the property, defeating the object of the property trust. The easiest way to avoid a failure of the trust, and possible action for negligence, is to specifically state the beneficiaries who are to inherit after the termination of the trust. If you have written Wills leaving the property to the residuary estate on termination of the life interest you will need to review the Wills carefully to ensure the property trust will not fail. If you need more information please call us http://www.iwc-ltd.co.uk/article-ineffective-property-trusts.html Tue, 26 Jan 2010 00:00:00 +0000 While most people should be very familiar with the law relating to testamentary capacity there is another mental condition which can affect whether a Will, or a specific part of a Will, can be deemed to be invalid. The concept of ‘insane delusion’ was first recognised in 1826 when a case was brought by a disinherited daughter who had been omitted from her father’s Will. In Dew v Clark the Court heard that her father believed she was ‘the devil incarnate’ and his 1818 Will failed to leave her any of his estate. The daughter produced evidence that she was well known for her kind nature and that her father had falsely told others that he had lavished his daughter with praise and wealth during his lifetime. The court found that the father had full capacity in all other respects and that his thoughts about her resulted from a ‘partial insanity’. Insane delusion is distinct from testamentary capacity and may relate to only a particular gift or omission in a Will and does not, in many cases, cause the entire Will to fail, unless the delusion affected all the provisions in the Will. Further examples of the condition have been found in American cases. In 1854 the case of Addington v Wilson involved a father who disinherited his daughters as he believed that they were witches. This reason alone did not deem him incapable of making a Will. A delusion can lead the testator to deny the existence of potential beneficiaries. In Re Robertson’s Estate [1948] the testator declared that he had no children in his Will when he had two living children. The Court in Oklahoma found that he had been suffering from an insane delusion as there was no rational basis to declare that he had no children. Where a testator wishes to exclude potential beneficiaries from inheriting their estate a specific exclusion clause in recommended along with an explanatory letter to the executors detailing the reasons for the exclusion should the Will be challenged. This should be stored with the Will itself http://www.iwc-ltd.co.uk/article-insane-delusion.html Mon, 18 Jan 2010 00:00:00 +0000 Many of our clients are unaware that a separation does not have the same effect on a Will as a divorce and fail to make a Will or amend an existing Will to reflect their change in circumstances. Divorce does not invalidate a Will but any gift to a spouse will lapse, as if the donee had predeceased the testator. A separation however will have no effect on a gift under the Will or the intestacy rules relating to spouses and the estranged partner will still inherit. High profile cases in the press have highlighted the importance of ensuring changes are made during a separation. Peter Sellers separated from his wife, Lynne Frederick, after their three year marriage. An agreement was made between them that Ms Frederick would receive a one off payment of £375,000 and their home in Los Angeles. It was also rumoured that Peter was in the process of re-writing his Will, leaving the bulk of his estate to charity, but neither this, or the agreement, were finalised before he died in July 1980. His previous Will, which was admitted to probate, left his £4.5 million estate to M Frederick and only token gifts of £750 to his three children from previous marriages. The children were unable to bring a claim on his estate as the token amounts meant that had not been left out of the Will ‘by mistake’. Ms Frederick died in 1994 and the fortune was inherited by her daughter who never met the star while he was alive. The situation described above is not uncommon. Financial advisor to many football start, Peter Baxter, died in April 2008 after contracting an infection while on a ski-ing holiday. He had been separated from his wife for three years and was living with a new partner. Although the size of his estate was unclear he was considered to be a wealthy man. His estate was distributed according to the terms of a Will drawn up in 1999, leaving his estate to his wife. His family launched a legal action but the claim was thrown out and they were ordered to pay Mrs Baxter’s legal costs. There is a lot of misunderstanding about the effect of events on a Will. Remember clients are advised that changes in personal circumstances will require them to revisit their Will to avoid their estate passing against their wishes http://www.iwc-ltd.co.uk/article-periods-of-separation.html Mon, 11 Jan 2010 00:00:00 +0000 A recent case has once again highlighted the importance of clients choosing their executors with care. The case involved an executor who ‘went too far’ was sued by the beneficiaries for failing to administer the estate. The executor was a friend of the lady who died in 2006. Under the terms of the Will she gave a right of occupation of her property to another friend then left her estate to be divided between three animal charities. The charities, on becoming aware of their entitlement under the Will, made enquiries of the executor to establish their entitlement. The executor supplied them with a copy of the Will and a letter apparently signed by the life tenant expressing that she wished to stay in the house. The charities made repeated enquiries but the executor provided incomplete responses and a valuation that was much lower than those carried out by the charities. Now suspicious by the executor’s actions they made further enquiries and were shocked to find out that the life tenant had actually lived in sheltered accommodation for quite some time and that the executor was currently residing in the property. As beneficiaries the charities applied to have the executor removed by the court and replaced with a professional executor. Not only did the court agree but also ordered the executor to pay the costs incurred by the charities in sending repeated solicitors letters and obtaining valuations. Although clearly within their rights in this case charities are notoriously aggressive where they are appointed beneficiaries of an estate. Leaving a fixed sum to a charity is preferable however caution should be exercised when deciding the amount as a specific bequest is paid in preference to any residuary payment meaning that, potentially, they may be nothing left for the ultimate beneficiaries. The case also highlights the benefits of having a professional executor appointed, even if it is alongside the clients chosen lay executors. Using a professional dispels the possibility of leaving an executor open to aggressive tactics used by charities and any potential claim against them personally, even for innocent mistakes http://www.iwc-ltd.co.uk/article-choose-your-executors-carefully.html Mon, 04 Jan 2010 00:00:00 +0000 In 1998 the Law Commission first produced a report recommending reform of two long standing legal rules, the rule against perpetuities and the rule against excessive accumulations. These recommendations have now been accepted by Government and the Perpetuities and Accumulations Bill received Royal Assent on 12 November 2009. As background; the rule against perpetuities has its origins in common law. A statutory time limit was added by the 1964 Act setting a time limit for future dealings with property of 80 years. The rule against excessive accumulations was enacted in the 1800’s allowing income to be accumulated by the trust rather than distributed. Time limits were also placed on this period by the 1925 Law of Property Act and the 1964 Act. The Law Commission identified problems with this current law which mainly focus on the rule against perpetuities being too wide (it encompassed commercial dealings such as future easements, options and rights of pre-emption which it was never designed to control), complex and confusing, particularly where the common law rule of ‘lives in being’ was imposed. The key changes introduced by the new Act ends this uncertainty by imposing a single, mandatory, perpetuity period of 125 years. This removes any previous statutory periods and the use of the common law rule. The new period will apply for all trusts created after the legislation comes into force. In relation to Wills this means that any Will executed after the implementation date will be subject to the new perpetuity period. Wills executed prior to the date the Act comes into force will still be subject to the old regime regardless of when the testator dies. The Act does however give the option for the trustees to fix the perpetuity period for those trusts that come into existence under the ‘lives in being’ rules. This can assist trustees where it is difficult to establish when the period ends under common law by fixing the period at 100 years. In relation to excessive accumulations; the new Act abolishes the rule for all noncharitable trusts. For charitable trusts there are two accumulation periods available; either the life of the settlor (for lifetime trusts) or 21 years. The abolition of the rule for non-charitable trusts will be particularly useful for trustees of discretionary settlements who will be able to accumulate sufficient income to settle any inheritance tax liabilities on ten year anniversaries. A commencement date for the Act has not yet been specified by the Lord Chancellor but is expected to be in 2010. The need to have a valid Will in place outweighs any benefit to gained by waiting until the new provisions are in force. Should any clients wish to take advantage of the longer perpetuity period a codicil can be produced to effectively ‘republish’ the Will at a later date so that it falls under the new regime. http://www.iwc-ltd.co.uk/article-law-reform--perpetuities-and-accumulations.html Thu, 10 Dec 2009 00:00:00 +0000 Four years after a Green Paper made recommendations for the simplification of succession law in Europe the European Commission have released draft rules governing jurisdiction and applicable laws. (Click the title above for more on this story) http://www.iwc-ltd.co.uk/article-international-succession-simplified.html Sat, 05 Dec 2009 00:00:00 +0000 With the festive season just around the corner many people may be thinking of making generous gifts to family members and will be looking for tax efficient ways to do this. Any cash gift to an individual is a Potentially Exempt Transfer... more http://www.iwc-ltd.co.uk/article-tax-free-gifts.html Sat, 28 Nov 2009 00:00:00 +0000 Internet advice company unbiased.co.uk have recently carried out a survey into wills and the process of regularly reviewing and updating them in line with a client’s changing circumstances. http://www.iwc-ltd.co.uk/article-shocking-will-writing-stastitics.html Wed, 18 Nov 2009 00:00:00 +0000 On 29 October 2009 the Law Commission released a public consultation seeking to bring inheritance law up to date to meet the needs and expectations of modern families. Click the blue heading above to read more on this story.... http://www.iwc-ltd.co.uk/article-law-commission-to-review-rules-on-inheritance--intestacy-issues.html Fri, 06 Nov 2009 00:00:00 +0000 After reporting two weeks ago about the use of proprietary estoppel to claim an inheritance another case has hit the news this week showing that these matters are dealt with on a case by case basis and nothing is guaranteed http://www.iwc-ltd.co.uk/article-proprietary-estoppel.html Thu, 15 Oct 2009 00:00:00 +0100 The law relating to Advance Directives could be reviewed after a young woman used one to commit suicide.... http://www.iwc-ltd.co.uk/article-advance-directives-revisited.html Mon, 12 Oct 2009 00:00:00 +0100 A recent case in Northern Ireland has seen a cohabitee bring a successful claim against the estate of her deceased partner http://www.iwc-ltd.co.uk/article-cohabitee-victory-using-proprietary-estoppel.html Mon, 05 Oct 2009 00:00:00 +0100 The last wishes of soldiers killed in Afghanistan are not being honoured as the Ministry of Defence have lost their Wills, with heartbreaking consequences http://www.iwc-ltd.co.uk/article-lost-wills-cause-heartbreak.html Sat, 26 Sep 2009 00:00:00 +0100 A woman has become the benefactor of an unexpected £200,000 windfall after seeing a case on BBC1 programme ‘Heir Hunters’ http://www.iwc-ltd.co.uk/article-unexpected-inheritance.html Sat, 19 Sep 2009 00:00:00 +0100 As the use of DNA testing becomes more widespread it is worth considering the role it plays in establishing beneficiaries, either under a Will or under the intestacy rules..... http://www.iwc-ltd.co.uk/article-dna-testing-establishes-beneficiaries.html Mon, 14 Sep 2009 00:00:00 +0100 Lindup v Agus - Claim under the Inheritance (Provision for Family and Dependants) http://www.iwc-ltd.co.uk/article-claim-under-the-inheritance-act-1975.html Wed, 09 Sep 2009 00:00:00 +0100 The Supreme Court have dispensed with the need to sign and have witnessed a Will or an amendment to a Will where it can be shown that the testator's intention was clear. http://www.iwc-ltd.co.uk/article-australian-court-shows-relax-in-formalities.html Wed, 02 Sep 2009 00:00:00 +0100 The importance of appointing a professional to administer a Trust is always something we stress. However, more people are relying on their friends and relatives to take on this important role. Unfortunately, these people they 'trust' can take advantage of their position as the temptation of cash becomes too great. http://www.iwc-ltd.co.uk/article-professional-executors.html Wed, 26 Aug 2009 00:00:00 +0100 An arrangement between the beneficiaries of an estate has just been declared void as a deliberate avoidance of I H T . A man was due to inherit the sum of £665,000 from a legacy in his stepfather's will. His step-father died in 2004, leaving an estate worth £7 million. http://www.iwc-ltd.co.uk/article-deliberate-avoidance-of-inheritance-tax.html Tue, 11 Aug 2009 00:00:00 +0100 A recent Court of Appeal decision h as again reaffirmed the move towards prenuptialagreements being more persuasive in the divorce courts. The current position in this country is that pre-nuptial agreements are not enforceable as they are seen to be against public policy. http://www.iwc-ltd.co.uk/article-prenuptial-agreements-and-wills.html Sun, 09 Aug 2009 00:00:00 +0100 A recent Court of Appeal decision h as again reaffirmed the move towards prenuptialagreements being more persuasive in the divorce courts. The current position in this country is that pre-nuptial agreements are not enforceable as they are seen to be against public policy. http://www.iwc-ltd.co.uk/article-prenuptial-agreements-and-wills-75.html Sun, 09 Aug 2009 00:00:00 +0100 The concept of receiving a double saving on both inheritance tax and income tax has been raised in a recent Lexis Nexis Private Client Tax conference. Nicholas Hughes spoke about gift aid and IHT at the conference referring back to a 1997 case, Saint Dunstans v Major. http://www.iwc-ltd.co.uk/article-double-dip-for-tax-relief.html Mon, 03 Aug 2009 00:00:00 +0100 The ongoing problem of intestacy is constantly in the news, normally when it effects a celebrity or their family. Even in these cases the hardship and suffering caused by inadequate provisions are plainly demonstrated. http://www.iwc-ltd.co.uk/article-laws-of-intestacy-create-inheritance-tax-bill.html Mon, 20 Jul 2009 00:00:00 +0100 Many people when they are making a will like to include donations to charity. As well as national charities there is often a desire to support local groups in order to 'give something back' to the local community. While some of your clients may know exactly which local causes they want to support, others may be less sure. This is where your local Community Foundation is ideally placed to help. http://www.iwc-ltd.co.uk/article-local-giving.html Tue, 14 Jul 2009 00:00:00 +0100 Lets assume a man called Mr Smith's passes away whose estate was over £1million when he died. If his residuary estate had been passed to an Immediate Post Death Interest (IPDI) for the benefit of the spouse there would have been no IHT to pay on first death due to the spouse exemption rules. http://www.iwc-ltd.co.uk/article-is-it-possible-to-pay-no-inheritance-tax.html Thu, 25 Jun 2009 00:00:00 +0100 A woman has been awarded a share of her husband's inheritance 22 years after they separated in a ground breaking divorce settlement. The couple, who met in 1979 and married in 1982, lived as husband and wife for just four years before separating. They had one child together and never formally divorced. http://www.iwc-ltd.co.uk/article-claim-against-a-22-year-old-inheritance.html Mon, 22 Jun 2009 00:00:00 +0100 Life insurance policies are used for a variety of reasons, whether it is to provide for dependent's or making a future provision to pay an IHT liability. If these policies are written in trust they fall outside the estate for IHT purposes but what is the tax treatment during the donor's lifetime? There are different types of insurance policy. http://www.iwc-ltd.co.uk/article-taxation-on-life-policies.html Sat, 20 Jun 2009 00:00:00 +0100 A village in Pembrokeshire has benefited from the £407,028 estate of a deceased resident who wanted to thank the community for their kindness. Margaret Alan and her husband Harry used to holiday in Solva, a picturesque seaside resort, and moved there 30 years ago to retire. http://www.iwc-ltd.co.uk/article-spreading-happiness-in-a-will.html Fri, 12 Jun 2009 00:00:00 +0100 IWC are pleased to announce a new agreement with WillData the National Will Registration service. http://www.iwc-ltd.co.uk/article-iwc-company-news.html Fri, 05 Jun 2009 00:00:00 +0100 To qualify as an immediate post death interest a number of conditions must be satisfied. If they are, then the treatment of the interest can avoid certain charges that other trusts are subject to. To qualify as an immediate post death interest the settlement must have been created by Will or under the rules of intestacy and must arise immediately on death. http://www.iwc-ltd.co.uk/article-life-interest-trust--probate.html Wed, 27 May 2009 00:00:00 +0100 If a Will is written by a person as a result of force, fear or fraud it will not be classed as the act of the testator and will not be accepted by probate. When a person dies it is common for an aggrieved beneficiary to raise issue relating to the circumstances under which the document was made. http://www.iwc-ltd.co.uk/article-fear-force-and-fraud.html Wed, 20 May 2009 00:00:00 +0100 Thanks to section 47 ( 1 ) (i) of the Administration of Estates Act 1925 it has been held that a grandchild can not inherit from his/her grandparents estate if they have deceased at the hands of the grandchild's parent. http://www.iwc-ltd.co.uk/article-disqualified-from-inheriting.html Sun, 17 May 2009 00:00:00 +0100 Claims under the Inheritance (Provisions for Family and Dependents) Act 1975 can be made by certain categories of person. One thing that a claimant must show is that they were financially dependent on the deceased and therefore entitled to a payment from their estate. http://www.iwc-ltd.co.uk/article-financial-dependence-claims.html Sun, 10 May 2009 00:00:00 +0100 A £30,000 inheritance tax bill has been avoided by probate specialists by transferring the nil rate band of what is thought to be the earliest 'first death' for inheritance tax purposes. The widow, who died last year some 65 years after her husband, left an estate that without the transferred nil rate band would have incurred a £30,000 inheritance tax bill. http://www.iwc-ltd.co.uk/article-transfer-of-earliest-nil-rate-band.html Mon, 27 Apr 2009 00:00:00 +0100 A farmer who claimed that he should inherit the farm from a deceased relative who died intestate has won his claim in the House of Lords relying on proprietary estoppel. After three Court hearings and an estimated £400,000 in legal costs Thorner v Major & Others [2009] has finally been decided. http://www.iwc-ltd.co.uk/article-contentious-probate.html Mon, 20 Apr 2009 00:00:00 +0100 Last week saw the start of the new tax year and the planned increase in the nil rate band from £312,000 to £325,000. http://www.iwc-ltd.co.uk/article-increase-in-nil-rate-band.html Mon, 13 Apr 2009 00:00:00 +0100 Looking at case law is the easiest way to assess how courts will deal with matters of contention with Wills. The recent case of Shah v Joshi considered some of the most common causes for claims. http://www.iwc-ltd.co.uk/article-contentious-probate-21.html Mon, 13 Apr 2009 00:00:00 +0100 A seven month inquiry into a probate firm is drawing to a close with shocking results and discoveries. Solicitors Probate Services Ltd first came to the attention of the authorities last year and in July they were banned from dealing with probate work. http://www.iwc-ltd.co.uk/article-probate-firm-investigated.html Wed, 01 Apr 2009 00:00:00 +0100 In simple terms a pilot trust is one that is set up during the lifetime of the testator ready to receive property on their death by a specific legacy in the Will. Also know as 'feeder' trusts they are normally discretionary in function and can be created with as little as £10. http://www.iwc-ltd.co.uk/article-pilot-trusts.html Sun, 29 Mar 2009 00:00:00 +0000 When genealogists and probate researchers located an Italian man with a view to passing on his inheritance he was adamant that he should only be contacted using a PO Box address. When this was questioned he claimed that his daughter would kill him for the money. http://www.iwc-ltd.co.uk/article-heir-hunters.html Thu, 26 Mar 2009 00:00:00 +0000 This week the Telegraph reported that the aptly name ' vulture syndrome' is to be blamed for the increase in disputes by families over a deceased's Will. As study has been carried out by leading London law firm Seddons on 3000 adults which reveals that one in ten of those surveyed have been, or are currently involved in, a dispute following a death in the last six months. http://www.iwc-ltd.co.uk/article-vultures-coming-out-of-the-woodwork.html Tue, 17 Mar 2009 00:00:00 +0000 When making decisions about the property and welfare of a person lacking mental capacity the overarching principle pursuant to the Mental Capacity Act 2005 is that any decision made on behalf of that person must be made in his best interests. http://www.iwc-ltd.co.uk/article-statutory-wills.html Thu, 12 Mar 2009 00:00:00 +0000 The 60 day tax limit during which HMRC can investigate tax paid on an estate has been scrapped. Instead they will focus on taxpayers who have made gifts before their death, giving them more time to conduct their investigations. http://www.iwc-ltd.co.uk/article-60-day-hmrc-investigation-limit-scrapped.html Thu, 12 Mar 2009 00:00:00 +0000 A recent statement from the Law Society warns the public that the current financial crisis may mean that many wills are now out of date. The press release for the Law Society states that the current financial situation along with the housing slump means that many wills are out of date and will need to be redrawn. http://www.iwc-ltd.co.uk/article-law-society-issues-warning.html Mon, 09 Mar 2009 00:00:00 +0000 The provisions of a Will are normally contained in one properly executed document and if changes or additions are to be made to the Will then this should be done by codicil or the execution of a new Will but an unexecuted document can be incorporated into a Will at the time it is written. http://www.iwc-ltd.co.uk/article-incorporation-of-other-documents-into-a-will.html Fri, 06 Mar 2009 00:00:00 +0000 As we know it is not illegal for a taxpayer to attempt to minimise or avoid tax by arranging their financial affairs in a certain way. It is only illegal to evade paying tax by failing to declare transactions or by declaring false amounts of income or capital. Where a tax payer evades the payment of tax the person could be open to both civil and criminal penalties. The revenue has previously challenged tax avoidance scheme, especially those which are complex and technical as they view them as artificial. http://www.iwc-ltd.co.uk/article-tax-avoidance-or-tax-evasion.html Tue, 03 Mar 2009 00:00:00 +0000 With everyone forecasting a bleak outlook for the rest of 2009 it is nice to see that there are still areas of hope on the horizon. As probate properties are usually sold for a price less than their market value it has been reported that this type of sale is having a positive effect on the housing market. http://www.iwc-ltd.co.uk/article-are-probate-sales-helping-the-property-market.html Sun, 01 Mar 2009 00:00:00 +0000 In a recent case the Court has made it obvious that it will not condone actions where trustees under a will do not discharge their duties properly. In this case the trustees were removed by the court and professional trustees were appointed in their place. The case arose because of a dispute over a Will, the last of several made by the testator, who was a multimillionaire. http://www.iwc-ltd.co.uk/article-trustees-breach-of-duties.html Mon, 23 Feb 2009 00:00:00 +0000 The principle tax saving opportunity available to a home owner is the Capital Gains Tax (CGT) private residence exemption. A saving on income tax is no longer possible since the withdrawal of mortgage interest relief from 2000/2001 onwards. As a substantial asset clients frequently raise questions about gifts of the family home, or at least an interest in it, as part of estate planning and IHT savings on its value at death. http://www.iwc-ltd.co.uk/article-the-family-home.html Tue, 17 Feb 2009 00:00:00 +0000 Before a Will can be admitted to probate the district judge or registrar must be satisfied that it was duly executed in accordance with the proper formalities. The attestation clause in a Will will raise the presumption that the Will was correctly executed where it recites that the formalities have been complied with. http://www.iwc-ltd.co.uk/article-the-importance-of-the-attestation-clause.html Mon, 16 Feb 2009 00:00:00 +0000 A city law firm has reported three-fold rises in High Court disputes over Wills. Wedlake Bell put this down to the breakup of the nuclear family, longer life spans and larger estates. The figures quoted in their recent report into disputes show that the number of disagreements reaching the High Court in 2006 were just 83 compared to 228 last year. http://www.iwc-ltd.co.uk/article-rise-in-inheritance-tax-disputes.html Mon, 09 Feb 2009 00:00:00 +0000 Despite still not being legally binding more couples are entering into premarital agreements and courts are becoming more willing than ever to consider their terms on a divorce. They still, however, have a wide discretion and each case is judged on its own facts and circumstances. http://www.iwc-ltd.co.uk/article-prenuptial-agreements.html Mon, 02 Feb 2009 00:00:00 +0000 As part of IHT financial planning many clients may be in a position in which they would benefit from gifting property to children during their lifetime to avoid it forming part of their estate on death and incurring an inheritance tax liability. The gift is 'potentially exempt' from IHT which means that there is no IHT payable at the time the gift is made and, as long as the donor survives for seven years, the gift will not 'fall back' into the estate on death. http://www.iwc-ltd.co.uk/article-reservation-of-benefit.html Mon, 26 Jan 2009 00:00:00 +0000 This case is a long delayed probate retrial concerning which of three Wills should be admitted to probate in respect of the estate of Alice Adam. In 1978 Mrs. Adam executed the first of the Wills under which she appointed Mr Couwenbergh her executor and, after a £500 legacy to her brother Eugen, left the remainder of her estate in equal shares to Eugen's two sons, his daughter Barbara (i.e. to her two nephews and niece) and to Mr Couwenbergh. There was no issue concerning the validity of that Will, the original of which had gone missing. The question raised during the case was whether the 1978 Will was revoked by one or other of the two Wills executed in October 1990. http://www.iwc-ltd.co.uk/article-couwenbergh-v-valkova-2008.html Mon, 19 Jan 2009 00:00:00 +0000 Inheritance Tax is a considerable concern to most clients particularly when they begin the process of writing a will and considering to whom their estate will be left. In previous times of spiralling property prices, the number of individuals whose assets exceed the Nil-Rate Band has continued to increase. As a result, more and more people are looking for ways to minimise their Inheritance Tax liabilities. http://www.iwc-ltd.co.uk/article-utilising-exemptions.html Mon, 12 Jan 2009 00:00:00 +0000 Mr Zink was a lawyer in Iowa who died in 1930. In his Will he left $75,000 in trust for 75 years at the end of which time he hoped the fund would have swelled to $3 million, enough to found the Zink Womanless Library.The words No Women Admitted were to mark each entrance. http://www.iwc-ltd.co.uk/article-bizarre-wills.html Mon, 05 Jan 2009 00:00:00 +0000 New case law has led to the Privy Council providing more guidance on the interpretation of Wills in general and the expression 'per stirpes'. The debate in this case related to Clause 6 in the Will of the deceased who died in the Bahamas in 2004. http://www.iwc-ltd.co.uk/article-interpretation-of-clauses.html Mon, 29 Dec 2008 00:00:00 +0000 What advice should you be giving when advising your clients on their choice of executor? Executors have an important role to play, their decisions can affect the amount of tax paid on an estate for example. They can also effect the speed with which the estate is dealt with and can help alleviate any stress at what is already a difficult and emotional time. http://www.iwc-ltd.co.uk/article-choosing-the-correct-executor.html Mon, 22 Dec 2008 00:00:00 +0000 The review of the impact of the Mental Capacity Act, which commenced in October, will close on the 15th January. The Society has been involved and has been working with the Office of the Public Guardian in making amendments to the current process. http://www.iwc-ltd.co.uk/article-lpa-reviews.html Mon, 22 Dec 2008 00:00:00 +0000 With 45% of children being born outside of marriage illegitimacy raises not only questions of principle but also technical points on drafting. Although it is a matter for the testator to decide whether any illegitimate children should be included as beneficiaries under a Will if a drafter is asked for any advice the preference should be to include them according to James Kessler QC. http://www.iwc-ltd.co.uk/article-illegitimate-beneficiaries.html Mon, 15 Dec 2008 00:00:00 +0000 In August 2006, Mark Birley, the founder of an aristocratic night spot in London, passed away leaving an amassed fortune of £105 million. The extraordinary dispute over the multi million pound legacy that has split one of Britain's leading society families, has been privately settled. http://www.iwc-ltd.co.uk/article-aristocrat39s-wills-challenge-ends.html Mon, 08 Dec 2008 00:00:00 +0000 In August 2006, Mark Birley, the founder of an aristocratic night spot in London, passed away leaving an amassed fortune of £105 million. The extraordinary dispute over the multi million pound legacy that has split one of Britain's leading society families, has been privately settled. http://www.iwc-ltd.co.uk/article-aristocrat39s-wills-challenge-ends-46.html Mon, 08 Dec 2008 00:00:00 +0000