You might think that all is well if you do not leave a Will in place, but you might be wrong. Take a look at this advice .. it might make you start thinking about what would happem in your own situation…..

What Happens if You Die Without Making a Will

By Simon Markham

If you die without making a Will in the UK, the state will decide who gets what and how much, so those who you would want to benefit may get far less than you hoped.

Your estate (your property and all belongings) are frozen and become subject to the law of intestacy. You are said to have died ‘intestate’, meaning everything you own will be valued, tax paid at 40% if worth more than £275,000 (as at August 2005) and then shared out to your surviving spouse or relatives or given to the state if you don’t have any.

The problem with this is that neither you or your family will have any say in the matter if you didn’t make a Will. The beneficiaries and the share they receive will be decided by the state and the whole process can takes months or even years because you didn’t take the time to make a Will.

Whilst the law and complete strangers decide how your belongings are shared, your surviving spouse or partner has all the usual household and living expenses to pay. If you are the main breadwinner they will probably be on a reduced income. Your surviving spouse or partner may not have access to money, she or he would normally have a right to if you had made a Will, because the assets could be frozen until all the formalities have been sorted out. If you have got a valid Last Will and testament it should take no longer than three months to complete the legal process and release your assets to the people who you chose.

So Who Gets What if You Die Without Making a Will?

When someone dies without making a Will or Last Will and Testament, their estate (all their property and belongings) are distributed according to the law of intestacy. This is where, in effect, the state writes your Will for you and is most likely not to meet your wishes. The following outlines the basic rules that decides who gets what:

If you are married at the time of your death

Your spouse will get everything if you left less than £125,000. If more than £125,000 is left but you leave no children, parents or siblings, then your spouse will still get everything.

If you are married with children at the time of your death

If you die leaving a spouse and children, then your spouse will get the first £125,000 and your personal effects. The remainder is divided as follows: your spouse gets a life interest in half and the other half is divided between your children. A life interest means that your spouse is entitled to the income on that half for their lifetime and on their death it will automatically pass to your children.

If you are married without children but have parents or siblings

If you die with no children, but have surviving parents or siblings, then your spouse gets the first £200,000 plus personal effects and the remainder is divided two ways. Your spouse will get half and the other half goes to your parents. If your parents have pre-deceased you, this share is divided between your siblings.

If you are not married at the time of you death

If you leave children then it will be divided equally between them. If there are no children but your parents survive you, then everything will go to your parents. If there are no children or parents, then your siblings will receive everything. If you leave no children, parents or siblings, then your grandparents will get everything. If none of these people are still alive, then it will be divided among your uncles and aunts. If there are none of the above then your estate will pass to the Crown.

Notes:

When using the term ‘children’ this includes illegitimate and adopted children but not step-children (unless legally adopted). Joint property generally passes to the surviving joint owner.

Copyright © Make Your Will – Free Guide to Making a Will in the UK. Visit our free guide to UK Will writing and discover the process of making a will thats legally valid.

The Importance Of Making A Will

By Benedict Rohan

Please note: this article applies to residents of England, Wales and Northern Ireland and is provided for general information only. It does not constitute financial advice.

It’s not something that anyone likes to think about, but deciding what happens to your estate when you die is crucially important for ensuring that your loved ones are looked after when you’re gone and that your assets are distributed as you would have wished.

Many people think that wills are only necessary for people with a great deal of wealth, but this isn’t the case. There are certain laws governing how a person’s estate is divided if they die ‘intestate’ (i.e. without a will), which might not be what you would expect or intend. For example, if you’re not married or in a civil partnership, even if you co-habit with your partner, they will not be entitled to inherit anything from you unless you specifically mention them in your will. Even if you are married, without children, your spouse will not inherit your entire estate – other living relatives such as your parents and siblings will be entitled to a share. Also, if your circumstances change, for example if you get married, divorced or remarried or have children, this could make your estate more complicated to settle. Another important point to bear in mind is that if you don’t have a will, you won’t have a named executor to carry out the administration of your estate and the responsibility will fall upon your beneficiaries, whom you may deem unsuitable to handle your affairs.

Making a will has other advantages too – planning your estate and who will inherit may help you to minimize the impact of the inheritance tax laws.

To make a will, you must be 18 years of age or older. You must be considered to be of sound mind and it should be written without pressure from any other party. A will must be recorded in writing, and it needs to be signed by yourself in the presence of two witnesses, who must also sign. Beneficiaries of the will and married partners of beneficiaries cannot act as witnesses. If they do, the will won’t be invalidated, but their inheritance will be. The completed and signed will can be kept anywhere you want – at home, at your bank, at your solicitor’s office, at a Probate Sub-registry, a District Registry or the Family Division Registry of the High Court.

The big question for many people is whether it’s necessary to employ a solicitor to set up a will. The answer is no, but it is certainly recommended, particularly if your estate and personal circumstances are rather complex. It’s also easy to make seemingly simple mistakes which could end up having significant consequences. Common errors are not understanding what has to be done to make a will legally valid, changing the will without having it signed by witnesses, failing to make alterations in the event of a change in personal circumstances, forgetting about parts of your estate, or not taking into account that the beneficiary might die before inheriting.

Solicitor charges for setting up a will can vary between solicitors and will also depend on how complex your estate is. If you’re a member of a trade union, your membership may entitle you to a free will-writing service or free legal advice. You can bring down costs by considering in advance what your assets are and to whom you would like to leave them – whether family, friends or charity. This will include property, possessions, bank accounts, insurance policies, pensions and shares. Also think about who you want to appoint as executor of your estate and who you want to look after your children should you die before they reach the age of 18.

You should certainly consider using a solicitor if you have complicated personal circumstances, for example if you live with someone who isn’t your spouse or civil partner, if you have a dependant who is unable to look after themselves, if you have a business or own property abroad, if you don’t live in the UK or aren’t a UK citizen, or if you have lots of family members who may make claims on your estate, such as ex-spouses or children from previous marriages.

If you don’t want to use a solicitor, it’s possible to purchase ‘DIY’ will kits from many high street stationers and bookshops or online providers, which will provide basic guidance.

Remember to make amendments your will any time you have a change in circumstances such as marriage, remarriage, divorce, civil partnership or the birth or adoption of children. You’ll need to be careful in how you amend your will to ensure that it remains valid. It’s not possible to write alterations onto an existing will. Instead you must either write what’s known as a ‘codicil’ or draw up a new will entirely. A codicil is like an addendum to your will. It doesn’t replace the original will, but makes alterations to one or more of the sections. Only the person who created the original will can make a codicil, and it must be signed and witnessed in the same way as the original will (although not necessarily by the same witnesses). It’s only suitable for making small and uncomplicated changes such as increasing or decreasing the amount of money left to a beneficiary, adding a new beneficiary or changing the executor. You can add as many codicils as you want to your will, but if you have lots of amendments or complex changes it’s best to start afresh with a new will altogether. When you draw up your new will, you should insert a clause at the beginning to explain that this new will revokes all previous wills and codicils. Your old will is no longer valid after you do this (and have your new will signed and witnessed), and you should therefore destroy it. You must destroy it yourself too, or have it destroyed in your presence – otherwise it may still be considered valid.

Your will may be challenged if a person feels that it hasn’t left them with adequate provision or they don’t believe it to be valid – for example, if it hasn’t been drawn up in line with the legal requirements outline above.

Author: Benedict Rohan Website: http://www.mortgagenation.co.uk Benedict Rohan works as a freelance finance writer. Commercial Mortgage, Homeowner Loans, Remortgages

Now, here is something that is critically important:

Barclays Bank, HSBC, Lloyds Banking Group and RBS Group have all voluntarily agreed to review and, where necessary, improve the way they sell will-writing and executor services following discussions with the OFT.

The OFT approached the four banks during 2010 as part of a wider effort to improve the will-writing market for customers and their beneficiaries, following concerns that some consumers were appointing professional executors without fully understanding the likely costs and the alternative options.

The four banks have agreed to meet three key principles, to ensure customers are able to make well-informed decisions:

* Consumers making a will should not be led to believe that appointing a professional executor is essential or the norm. * Consumers should not be encouraged to appoint a professional executor unless it is clearly in their best interests. * Providers should be satisfied, before the will is drafted, that the consumer has the information necessary to make an informed choice. The consumer should understand the options around executor appointments and be aware of the likely basis of charging for the professional executor service.

All four banks are currently reviewing their product literature and processes and any necessary changes should be in place within six months at the latest.

There is no requirement in law to appoint a professional executor, although, according to a survey published by the OFT last year, some 43 per cent chose to appoint the professional will-writer or solicitor who wrote their will. While the costs for preparing a will can be relatively modest, the costs for a professional executor to administer an estate can be high and vary considerably. For an average estate, consumers can pay between £3,000 and £9,000. Failing to shop around for executor services could be costing UK consumers around £40 million a year, according to OFT estimates.

David Stallibrass, Director in the OFT Services and Public Markets Group, said:

‘The wrong decision when appointing executors could mean a potentially expensive professional service is chosen, when a family member or friend may be quite capable of handling the task either alone or with professional support. We are pleased that each of the banks has agreed to review its selling practices and marketing literature to ensure customers are getting the information they need to make informed choices.’

NOTES

1. Barclays Bank, HSBC, Lloyds Banking Group and RBS Group are the only banks that currently offer will-writing and executor services. Each bank outsources the preparation of wills to external solicitors, but provides the executor service itself. 2. When a will is prepared, thought will usually be given to who is legally responsible for administering the estate according to the provisions set out in the will. When appointed under a will, these persons are known as ‘executors’. Lay executors – such as friends or family members – can be appointed. Alternatively, one can employ a professional executor, who will administer the estate in return for a fee (often a percentage of the value of the estate). This might be the same person or firm who wrote the will. 3. The OFT has previously worked closely with the Solicitors Regulation Authority (SRA), which led to the introduction in June 2010 of new guidance on will-writing and executor services. Since then the SRA, which regulates more than 120,000 solicitors in England and Wales, has noted improvements in transparency for consumers from some large law firms. In June 2010 the Institute of Professional Willwriters’ code of practice, which also covers the principles above, was given approval by the OFT under its Consumer Codes Approval Scheme. 4. For more information on the OFT’s previous work in this area see the press notice Don’t lose out when preparing wills and appointing executors, advises OFT (16 June 2010) 5. General consumer advice on will writing and executor services is available on the Consumer Direct website.

Source: http://www.oft.gov.uk/news-and-updates/press/2011/23-11

Author: Paul Easton

So you’ve decided the best thing to do to protect your hard earned assets is to put them in a Trust. This way, asset protection will prevail and the assets will be available for you, your children and other Beneficiaries to enjoy.

But what happens when things turn sour and the Beneficiaries want to know what’s in the Trust and what they’re entitled to. Are they entitled to know all about the Trust and its affairs?

This issue comes up more than most people realize. It especially raises its head when Beneficiaries are fearful and suspicious which can occur if there is limited communication between Trustees and Beneficiaries.

What’s needed is good dialogue between everyone which tends to foster good will and trust.

In the event however that the Beneficiaries do want to know about the Trust, what information are the entitled to see?

Legal Rights of Beneficiaries

Historically, it has been thought that a Beneficiary’s right to information stemmed from whether they were a Fixed or a Discretionary Beneficiary.

Fixed Beneficiaries had an entitlement to Trust assets pursuant to the Trust Deed provisions. Therefore, it was argued they had an entitlement to view Trust documents and to receive disclosure of Trust information.

Discretionary beneficiaries on the other hand had no entitled to Trust assets. All they possessed was a right to be considered by the Trustees when the Trustees exercised their discretion with respect to the paying out of capital, income and /or the allocation of assets.

Accordingly, it was supposed Discretionary Beneficiaries had no power to demand to see Trust information or to view Trust documents.

Recent case law has now clarified the basis on which a Discretionary Beneficiary may seek disclosure of Trust documents and this has nothing whatsoever to do with whether they are a Fixed or a Discretionary Beneficiary.

Rather, the approach has been to apply to the Court’s on the basis that the Court has an inherent jurisdiction to administer Trusts.

Using this approach, the Courts have said that they possess inherent jurisdiction to supervise and if necessary, to administer Trusts. Beneficiaries of both classes have a right to approach the Courts to seek discourse of a Trust’s documents and it will be for the Courts to determine whether they will exercise their inherent jurisdiction or not.

This of course means that the right of a Beneficiary to view Trust documents is at the discretion of the Courts.

The Courts have said that when they are considering exercising their discretion they will be mindful that they are engaging in a balancing exercise, balancing the competing interests of different parties (eg: trustees and beneficiaries and third parties) and will take into account various issues including personal and commercial confidentiality, parties privacy, consequences of disclosure, etc.

The Courts have also noted that they will be mindful that Trustees are not obliged to disclose to Beneficiaries their reasons for exercising their discretionary powers. This is important as it could have an impact on what documentation is released to a Beneficiary to view.

In some circumstances the Courts have pronounced, disclosure may be limited and safeguards may have to be put into place.

Types of information that Courts have approved for disclosure include:

- Deeds of Trust; – Deeds of Variation of Trust Deed provisions; – Deeds of Changing of Trustees; – Deeds of Resettlement; – Legal opinions relating to the interpretation of a Trust Deed’s provisions; – Legal opinions with respect to a Beneficiary’s rights; – Valuations of assets of the Trust; – Financial accounts of the Trust.

This is some information that Beneficiaries are not entitled to see. For example, the Courts have ruled beneficiaries are not entitled to view letters and notes from Settlors, Memorandum of Wishes, Trustees reasons for decisions made and motives of Trustees.

Beneficiaries Rights to Demand and Receive Payment

Because the Trust’s financial statements may be viewed by a Beneficiary under a Court Order, it is important to deal with allocation of income each and every year.

Any income that has been allocated to a Beneficiary and shown as such in the financial statements, may be called by that Beneficiary to be paid to them upon them becoming adults.

Accordingly, only income that is to be spent on them should be allocated to them in the financial accounts. Failure to allocate income in this manner may result in a Beneficiary requiring a Trustee to pay them the surplus income that appears as a credit in their Beneficiary account shown in the financial accounts of the Trust.

The best way to avoid any type of disagreement is communication. If full communication is made with a Beneficiary, whether they are a Fixed or a Discretionary Beneficiary, then there will be no mystery or reason for distrust to arise.

Whilst Trustees are not legally required to show Beneficiaries all Trust documents, it is in our view, sensible to be clear and honest with Beneficiaries when they ask about a Trust’s affairs. Failure to do so will simply create suspicion and exacerbate tension.

Janet Xuccoa BCom LLB, is a director from Gillgan Rowe + Associates. She is a recognised Family Trust and LAQC expert in New Zealand where she leads the Trusts and Estate Planning division. Want to protect your assets and grow your wealth? Get your Free Family Trust Report:  ”The 9 Deadly Sins of Setting Up a Family Trust”

It helps to know what porbate is, making a will UK:

‘Probate’ is a term commonly used when talking about applying for the right to deal with a deceased person’s affairs. It’s sometimes called ‘administering the estate’. This page contains information about what to expect if a loved one’s estate is in probate.

In practice, different terms are used, depending on whether or not the deceased person left a will and where they lived. This information covers probate in England and Wales.

If the person who has died leaves a will

In this case one or more ‘executors’ may be named in the will to deal with the person’s affairs after their death. The executor applies for a ‘grant of probate’ from a section of the court knows as the probate registry. The grant is a legal document which confirms that the executor has the authority to deal with the deceased person’s assets (property, money and possessions). They can use it to show they have the right to access funds, sort out finances, and collect and share out the deceased person’s assets as set out in the will. If the person who has died didn’t leave a will

If there is no will, a close relative of the deceased can apply to the probate registry to deal with the estate. In this case they apply for a ‘grant of letters of administration’. If the grant is given, they are known as ‘administrators’ of the estate. Like the grant of probate, the grant of letters of administration is a legal document which confirms the administrator’s authority to deal with the deceased person’s assets.

In some cases, for example, where the person who benefits is a child, the law states that more than one person must act as the administrator.

* What to do if there is no will

If the person who died lived in Scotland

If the deceased person lived in Scotland you apply for a ‘grant of confirmation’.

* Find out more about applying in Scotland Opens new window

Personal representative

This is a general term which means executor or administrator. Grant of representation

This is a general term which includes grants of probate and grants of letters of administration Is a grant of probate/representation always needed?

When a grant is needed A grant is almost always needed when the person who dies leaves one or more of the following:

* stocks or shares * certain insurance policies * property or land held in their own name or as ‘tenants in common’

In most cases above, the bank or relevant institution will need to see the grant before transferring control of the assets. However if the estate is small some organisations, such as insurance companies and building societies, may release money to you at their discretion.

* Meaning of ‘tenants in common’ Opens new window

* Applying for probate

When a grant may not be needed

A grant of representation may not be needed where:

* the person who died left less than £5,000 * they owned everything jointly with someone else and everything passes automatically to the surviving joint owner

To establish whether the assets can be obtained without a grant, the executor or administrator would need to write to each institution informing them of the death and enclosing a photocopy of the death certificate (and will if there is one). Probate and Inheritance Tax

The personal representative won’t be granted probate until some or all of any Inheritance Tax that is due on the estate has been paid.

Source: http://www.direct.gov.uk/en/Governmentcitizensandrights/Death/Preparation/DG_10029799

Here is really useful video about making a Will in the UK.

Pop down and take a look at it – you might find it extremely useful.

Making a Will in the UK Video

Remember to come back here when you are done to find out about how to make a Will quickly and easily. You really ought to get around to doing it, shouldn’t you?

You can also see some FAQs at While no actual figures exist, it is thought that as many as 7 out of 10 people here die without making a will, leaving all kinds of problems behind for loved ones to sort out.

Sarah Travers talks to solicitor, Barry Finlay, about the importance of making a will to avoid further heartbreak and, below, Mr. Finlay answers some of the questions put to him by the public following the broadcast of this edition of Family Focus.

It also goes onto to explain some details about Enduring Powers of Attorney which are useful to get done many eyars before you need them. Do not leave it too late as it could cause your family a huge financiall loss and more hassle than you could ever believe!

Many people will associate big trust funds with their famous beneficiaries (or potential beneficiaries). Without needing to name anyone, you can probably think of a few yourself. In very many cases their massive inheritances leave huge numbers of people wondering what on earth they have done to be so lucky as to receive huge payouts, with more to come when their elderly relatives die. And yet that is just how things are. Money held in trust does not (necessarily) go into a trust fund on the proviso that the potential beneficiary behaves like a decent human being for the rest of their life. In fact, the only thing that generally governs who will benefit from a trust, and how much they will get, is the testator’s own discretion – and/or that of the nominated trustee who will manage the fund with them and after their death.

This has led to money getting left in trust for some surprising beneficiaries over the years. For example, the hotelier Leona Helmsley – known by many as “the Queen of Mean” – who died in 2007 at the age of 87 from congestive heart disease – left a surprising amount of money in trust for two of her grandchildren. That amount was precisely nothing. The reason she is reputed to have given is that they did not name any of their sons after her late husband Harry. She did, however, leave an amount of $12 million to her white Maltese dog Trouble, as well as a further large amount in trust – believed to be between $5-8billion for dogs in general. Although the trust is not bound to abide by the latter stipulation, Trouble has made out pretty well from Helmsley’s death, with a further stipulation stating that she will be buried next to Helmsley in the family mausoleum.

Helmsley had two other grandchildren, and they benefited from her will to the tune of $10million each – but they will lose at least half of that if they do not visit their late father’s gravesite once a year. The story does not end there, however. On legal challenge, it was ruled that Helmsley was not of sound mind when she made these bequests, and as a result they were amended by the courts dependent on certain factors. The two disinherited grandchildren were paid $6million and Helmsley’s own charitable foundation a further $4million. Where did this extra $10million come from? Trouble.

Because Judge Renee Roth judged that Leona Helmsley was of unsound mind when she made the original bequests, and possibly to save Trouble from becoming the first dog ever to be the victim of a constructive homicide, Roth decided that the grandchildren would be entitled to $6million as long as they maintained a media silence about their dispute with their grandmother. Trouble’s caretaker, Carl Lekic, explained that $2million would be more than adequate to keep Trouble in the manner to which she was accustomed for the next ten years – and as a result, numerous death threats against Lekic were dropped.

It seems, then, that there are two lessons here to be learned. One: that you should be nice to anyone who may leave you money. And Two: Even if disinheriting your grandchildren seems like a good revenge, you may wish to undergo a psychiatric evaluation before you actually do it.

Disclaimer: This article is for informational and entertainment purposes only, and should not be construed as legal advice on any subject matter.

Melissa Gordon is the publisher of LegalBuffet.com, a complete online resource that compares the legal services from various online companies. Find the best company for your LLC formation needs at http://legalbuffet.com/llc-services/

by James Becksdale

Everyone should consider making a will, and when you’re thinking about the various issues involved you will invariably come across matters upon which you will need legal advice.

The most common areas of concern for people are:

1. Jointly owned property: property jointly owned with another person can sometimes present problems on death depending on the nature of your co-ownership. If a property is co-owned as Joint Tenants the survivor will inherit the whole of the property on the death of the other, regardless of the terms of any will. If, however, a property is co-owned as Tenants in Common, you can leave your respective share in the property to your chosen beneficiary under your will. If you are unsure about the consequences of joint ownership, it is crucial to have it explained to you by a legal professional so that you can be sure your will deals with your property as you would wish.

2. Unmarried couples and civil partners: many couples who are not married are unsure of their legal rights on death and how to provide for each other in their wills. By law civil partners now have the same legal rights as married couples. The situation is more complicated for unmarried couples who do not have an automatic right to inherit the other’s estate and in these circumstances it is particularly important that your will is properly drafted to protect your partner. If you are in a relationship you should seek legal advice to ensure your partner is properly provided for in the event of your death.

3. Potential claims from third parties: if you do not adequately provide for those individuals who are dependent upon you in your will, this could later result in a claim against your estate – regardless of the wishes you made in your will. The law allows dependants to make a claim where they consider insufficient provision has been made for them by your will. If you wish to exclude a close family member from your will for whatever reason you should ensure you seek legal advice as to how to minimise the risk of such a claim.

4. Providing for children under 18: if you have children under 18 and are concerned about their upbringing and welfare when you die you can appoint an individual you trust to be their legal guardian. This can help to avoid legal arguments as to who will look after your children in the event of your death. If you have children under 18, you also need to consider how they would be provided for financially in the event of your death. A will enables you to ensure that your children’s financial future will be secure.

5. Providing for vulnerable or disabled beneficiaries: If you are responsible for an adult beneficiary who is unable to take care of themselves or manage their own affairs you should seek legal advice to ensure that any inheritance you leave for that beneficiary will give them the protection they need. Most often being in receipt of a large inheritance will mean that any state benefits to which your beneficiary is entitled will cease. If this is something which is of concern to you writing a trust into your Will could help. A trust allows you to appoint a trustee to assist your beneficiary in managing their inheritance. It also protects any inheritance left to beneficiaries from being means tested allowing them to receive their inheritance without losing their state benefit entitlement. If you have vulnerable or disabled beneficiaries who you wish to inherit, you should seek legal advice on how best to provide for them in your will.

Whatever your concerns when making a will, take proper legal advice from a wills and probate expert for your peace of mind.

Making a will can be a confusing process and you will want to be sure everything is accounted for to avoid being intestate because of an invalid will. Get the best free legal advice online to make sure you and your family are looked after.