It is quite astounding to consider that people work their whole life to generate wealth for their loved ones yet quite often, do not take the necessary steps to ensure that their intended loved ones receive that wealth upon death.
I have said so many times that one of the most important documents a person will execute in their lifetime is their Will. It never ceases to surprise me why only around 20% of people have a properly drafted and up to date Will.
The reasons for this are unknown. Perhaps it is lack of awareness in respect of what happens to a persons wealth when they die without a Will or simply because people find the task of a Will too much like they are admitting that one day, they will pass away.
The result quite often is that the wealth generated in a lifetime will be squandered away in legal fees due to families, loves ones etc, arguing over what they feel they should be entitled to.
It is not unheard of for legal fees in a disputed will/estate to cost more than the actual value of the Estate. This means, you work your whole life to generate wealth to ensure your loved ones have some financial security yet that wealth is dissipated over a matter of months.
If you do not have a Will, take some time to contact a solicitor who will guide you through the process quickly and protect your wealth.
In a case which proved the wisdom of putting your affairs in order before it is too late, a High Court judge’s intervention was required to ensure that the £500,000 proceeds of a deceased father’s life insurance policy went to his three children.
When divorcing the children’s mother, the father had undertaken to execute a trust whereby the policy would be held for the benefit of the children. However, the terms of that trust were never agreed and instead the father executed two other trusts which did not achieve the objective that had been envisaged.
Following his death, the result was confusion as to who was currently entitled to the income and capital of the policy proceeds. Although mediation resulted in an accord, an application to the Court was nevertheless required to sort out the muddle because one of the children was still a minor.
Employing powers conferred by the Variation of Trust Act 1958, the judge varied the two trusts so as to give the two older children an immediate and absolute entitlement to two thirds of the proceeds of the policy. Expressing confidence that the youngest child would not waste her inheritance, the judge directed that the remaining one third should vest in her when she reached the age of 18.
