Top Ten Reasons for Having a Will

Hello. Welcome, everybody. My name's after Mahmoud. I'm a solicitor on daughter. Also Electra. Under today, I'm very pleased to welcome you to this session today where I'm going to be speaking to you in despite side session on 10 top tips on reasons for having a will. So this has been recorded as a bites I session as of May 2000 and 17. Food data law. Now we'll have done Danese prepared a slide for you, which will really set out the essence off what are being covering on then that there, after there are some discussion points under some key questions Teoh test your understanding off this. So the things I'll be looking at then effectively are like I say, top 10 reasons why one would wish to consider making a will. And you'll see that I have set out 10 reasons here which I am to go through in quite some detail over the year course of the next 20 minutes. A side of khat, insofar as the bites Life session is concerned No, what you find is this. Sometimes people might think Well, I haven't really got much to give away to my family when I go on. Therefore, what's the point? Making a will and what you tend to find is in practice. Many people will have that view as well. Work through this bites high session. You'll see that in fact, there's a hold host of reasons what people should consider having a will make fourth, um, or draft a will themselves. Even if the estate is, in fact quite small up on their intentions may be somewhat simple. Even men in that situation as well. See, there are some very significant reasons why one should consider having the will made for them if they do not. And it could be a number of problems, which may be a reason following the death onder, which can cause difficulties not only for the family but indeed also four deep intended beneficiaries in due course. So first and foremost on one of the perhaps main reasons why people would consider having a will made for them is that which relates to the destination off their estate. And that's Intrinsa foes controlling insofar as they can at the destination off what is to happen to their state after they die. So, putting it simply if you make a will you can, to an extent, to decide where your money your assets end up in terms of who the beneficiaries, who will end up getting what you want them to know. This is particularly relevant when you deal with subsequent on second and subsequent marriages, for example, civil partnerships whereby people may have had a first marriage that may well have had Children through their first marriage date, and we married. They have subsequent Children with through their second or third marriage on the May wish to ensure that their Children from their first marriage perhaps are catered for on. One way to do that, of course, is to consider doing that food they will whereby day may leave a certain portion of their estate say they their spouse, who, indeed maybe their second spouse a za result of second marriage. But to ensure that there is a provision left four Children or the first marriage, they may wish to give their spouse media life interest, for example, so that upon he's of her death, Yeah, that part of your state is done handed over to the Children, for example. So that's one very key reasons other than that. Of course, people will wish to consider ensuring that those people who have, of course, being a certainly a major part of their life they wish to ensure that they will benefit towards Only for one way to do that, of course, is Teoh make the will. If they do not do so, then shortly. I look at the position within testes, see who would benefit in the event that the person does not in fact make the will. One of the other things to bury mind here is that in terms of controlling the destination of the estates, that's really one of the key benefits we have. Insofar. Autonomy is concerned in that unlike many other countries, you find out there is provision within England wells to decide as to whom you decide to leave US state who was in many other countries. You find a certain amount needs to be left for certain people in certain situations, and therefore here you can see there is some level of autonomy in that regard. One of the other key reasons why people should consider making a real is that which relates to administration, that is to say, without a world. The deceased next of kin, as we often refer to the term, which is often their wife. Husband, for example, will usually be appointed by the court in to act as the person who administers their state. But in fact, what you find is that if you make a will, you then decide who effectively will be administering your estate. That is, who will be collecting your assets for you will be paying off your debts, debts, and you will actually be distributing your state for you. It doesn't have to be a spastic could be really within reason. Other people that you may wish to appoint a zone executor or executors tricks if you fail to do sold in the order of the administration is in fact, one that is followed by depending upon whether there was a well made it all, or whether if there was no where, where the person died intestate and this would then be caught by effectively rules 20 122 of the NCP on that the NCP eyes the non contentious public rooms of 1987. So if somebody was to die having had made a will which will be is valid. Either did not point executives or did appoint executives who are now unwilling or unable to act. That person, therefore, has died in a situation where, although they have died intestate on, if they have disposed the water estate, there is a valid will. There were no executors able or willing to act. Now that's the real 20 of the N. C. P. R will come into play, which will then determined who will then be responsible for administering their estate for them. And, for example, if that person left, say, life interest to, say, minor Children, for example, India trustee off that life interest holding the estate on behalf off the Children would be the first person who had been titled If they were holding the residue on behalf that my child to be the administrative, for example, if somebody dies leaving, no, will it all or Nor Valid will. And this is where 22 of n CPL comes into play on. That sets sadly order of who will be up to act as administrator in that situation. Andi, that's where Se husband dies, for example, has not made a will, and he survived by a say his wife, his Children, his grandparents, his parents, his grandparents, these brothers and sisters that, in fact, the first person who will be up to actors is administrator will in fact be his wife in that situation. 22 which baby what he wanted anyway. But if not, then of course, that's why it's very important for him to consider having had made the will. Now, in terms of who you can appoint US executives, people have my choice. Yet it can appoint individuals that complaint solicitors, other professionals, banks, trust corporations, accountants. The benefit of appointing an individual, of course, is there is the element of trust there on the advantages that that person will know that person and be able to hopefully rely upon them to do what's necessary. Appropriate ending in their best interests. Of course, an individual may not necessarily be legally qualified, may not know what the procedure is, Therefore may need to go and see a lawyer anyway, and therefore it may not necessarily be the cheaper option, if that's what they were aiming for. The benefit of going to a solicitor or the profession, of course. Is that what all they will charge for the work they do. They were loved the expertise to be able to ensure that the mattress progresses swiftly, un appropriately as possible. Now, one of the other reasons why people need to consider making well is that reason which relates to come. Burial arrangements on that these people may express a wish in there were less to burial on also disposal of their body on the May also included in the will There we should safari the positions running use of their body for, say, medical purposes. Now, although such requests and were not binding upon the administrators or the administrators, the wish will, of course be specifically take into account insofar as any dispute that's concerned. So, for example, if, say, the test data in the will was to set out the fact they wished to be cremated and lets her upon death, there is a dispute between various members of the family as to whether the person should be buried or cremated on let's say the issue is taken to the court under court. Will, of course, take into account the the wish off Dear estate in those circumstances that the wish of the diseased and coming to their decision in deciding as to how their body should be disposed off. One of the other key reasons why people may consider making the will is to enable certain types of gifts to me made. And this is where you have different types of gifts. You have to rescind your gift, of course, which deals would distribute in Noah's parts of the will, which have not been distributed otherwise, you have pecuniary legacies which deal would give some money on. It has three specific types of guests known as a specific gift, a general legacy and also a demonstrative legacy. A specific gift is one whereby a person distributes a particular item of property owned by the deceased, which is distinguished from other property of the same kind. So when somebody, for example, in no well, especially fires that I leave my car and they specified a car by specifying the type of vehicle visa registration on Bensel Fourth, then that may be regarded as a specific gift, which means that for the purposes off Section 24 the Wheels Act 18 37 D will normally would read from the date of death, but in the case of a specific gift, it would that part of the world, that clause would actually read from the date off the will, as opposed to from the date of death on there for the benefit of a specific gift. Is it now? He was people to leave those particular assets to those people who they wish to benefit with the reassurance and confidence that they will get that particular item as long as that gift, of course, is still there, available at the date of death. If it's not, and that gift may well bait a dean Rather, that's with a gift Mayadeen sort of concept of redemption in that that person may then not get her replacement. In that regard, there's also what's called a general legacy, whereby for person wishes to not be that specific on which is the beneficiary intended beneficial to at least get the benefit off a gift, but not necessarily that gift. If that gift was to be disposed off, example in a general legacy would suffice. So a classic example of that is way for person in a well was to say that I leave my car whichever card and I'm a on a date of my death to my son, for example, and that's more in line with a general legacy so longer that person had a car, the date of death, and the sun would get that even if the sun, even if there wasn't a card, a date of death. And this is where Section 41 of the administration of the state's Act 1925 years useful because that would allow appropriation through the residue gift so as to enable some item didn't to be produced in order to wanna the fact that that general legacy was to be given to the sun indoor circumstances. Now a demonstrative gift is where somebody leaves a particular item are off out of a particular fund. So you say the father was to leave, say, 500 shares out of fees say he's BT shares, for example, and that's where he's itemizing. Shares out of a particular fund on the's didn't also take the same format in terms of the hard A work as general legacies. So again, making it will allows people to make different types of gifts sent to specify in those circumstances. Another key reason Why Person may wish to make a will is to appoint guardians in the will. Never test data, for example, has Children under the age of 18 than the May wish to appoint guardians to look after their Children event of their death before the Children attain the age of 18. On that This is when the absence of any express appointment, of course, may in fact appointed guardian on the edge of 18 off parents who have died on that. This is very important, therefore, that in terms of a discussion that needs to be had there forward clients in those circumstances, sometimes he will have difficulties with, say, the parents have fallen out and say the mother, for example, which is to appoint a guardian and event off her dying before a Children attain 18. But then he first for my husband, for example, is still alive, and he's appointed a guardian wouldn't ordinarily come into effect until he's death. Also, although there are exceptions, if, for example, there was a child arrangements order, it specified that the child live with mother and then she was to appoint a guardian. The new appointment can come into effect upon her death. One of the key reasons why people may wish to consider making a will is to effectively tax plan and, as I'm sure you will be aware, wanted a key taxis, which one needs Teoh. Certainly give advice on in these types of matters is that which relates to inheritance tax on making a will enables one to be able to take appropriate advice, since fires being up to mitigate any potential inheritance tax liability. Now many of you will be aware that, as from April this year 2017 we had the residence near a planned, which came to effect as from a death on the world the sixth of April 2017. And that's again a very important provisions to bear in mind insofar as bearing in mind that if a person was to leave a home or shared a home, uh, to to that a direct descendant or share off it, then in that way there is D residents new rate band, which has brought in the extra £100,000. That's from this tax year, Rebovich than that have been increased in line with deer next four years on that, that's one advantage off being able to take use of the residents new rate band exemption. But also, of course, we all have the residents Saidi Nil Rate band, which has been for some years, £9,325,000. So even though from some people you may find that their estate is less than 3 to 5 or is now less than effectively 45 in the case of if they have her stuff to leave into a direct descendent and there may potentially be no tax payable. But of course, if it's more than that, then this is where making a will can be particularly helpful because it enables people to think about using, for example, various forms of exemptions. There's a spouse exemption as a charity exemption does the so the partnership exemption. There's business property relief. There's agricultural property relief. There's this more payments exemptions, and there's There's a number of things that lawyers kind, of course, advise on to ensure that one can then take the best possible advice to limit d yet potential tax liability upon death in that regard, then there's also administrative closes, its various types of clauses that will can cater for in a will on administration trustees of trusts advising on the testes rules of only the power given to him by statute on these can be quite limited on this is, well, if one was to make a will, for example, and this gives the test date of the opportunity. In fact, consider the statutory powers of the executive is a more sort of trustees, and in fact, we have to extend the scope of these and therefore it is a number ways in which 1 may wish to consider extending the scope off the administrative clauses in disregard. An example, for example, is if the test data had a business, for example, and they wish for Save the family to continue running the business after death. And this is where business clothes could be provided for in the will to enable up to be done. As I mentioned earlier, one of the drawbacks would not. Making a will is that when it comes to distribution off three estate, the person would then be limited by what can be provided for InterVarsity in testis. E provisions are concerned on this is way insofar as in testis is concerned who benefits depends very much upon whom the person is survived by. So, for example, under the intestine to provision. If Deep Person was survived by, say, this violence bus or VEGETA civil partner on there were no need no issue but say they were survived by, say, their parents. That wasn't sisters, uncles and aunts and nephews and nieces. They accepted in that situation, if there were no issue, but there were certainly survived by the surviving spouse, will sue for survivors have a partner in that situation. The spouse to save a partner would in fact take everything, even though I like to say, the surviving parents or brothers sisters, that may stop your life in the second stances. But if the disease had no surviving spouses, registers civil partner in the order of beneficial entitlement is you would look a tissue on the statue trusts and, if not nondairy, looking at parents or diseased. If non members and sisters of the whole blood understand Cherie Trust and building Sisters of the Half Blood and you look like grand parents and if non because an answer, the whole blood on statue, trusting if non uncles and answer the hard path blood and finding the crown. And you can see therefore that if disorder works for that person, that that's fine. But if not if they if in fact wanted a different form of orders to who they wish to benefit, and that's why it's very important for them to have had considered at the benefit of having a, well, drafty so that they couldn't specify whose to benefit in the event of their death. Indal circumstances now one of the other issues and reasons why 1 may wish to consider making a warily states. If there is no will, then it may take longer and potentially may cost more for the lawyer to actually prove the estate, and that is to actually deal with the administrative process. That's because, of course, there's a number of enquires that need to be made when it comes to probate. Onda personal representatives will have a wide range of powers which will be given to them in carrying out the administration now, if one was to make a will and therefore point executors. In the benefit of that is they are entitled to take the authority from the will so once they accept office. They can do a lot more as executors than what they would be able to do if they were mere administrators, which it would be if they were acting a situation where I think there was a well, but no for a A sectors willing or unable to act or where the person died, intestate or potentially, it could take longer to be able to carry out the administration off the estate if the person had not made a will on. But this is where it's very important to bear that in mind. And as I mentioned earlier, there are famous administrative clauses, some which are already catered for in the trustee act on, amongst other acts. But also it's possible to actually extend the powers of thes so many of you who draft wheels. For example, you'll be aware that there is TheStreet provision provided by the Society of Trust on the State Practitioners, which allow for certain administrative clauses to become part and parcel of the will by enjoying that, the step provisions are specifically added. I referred to in the year the will. Now one of the other aspect soft administrative clauses are there are clauses which can cover, for example, issues related to power to ensure power to delegate. Nominate nominees power to carry on a business. For example, Andi, Even though there were some extensions to demonstrative closes in relationship hours, off maintenance and advancement, there are still many other powers which can be specifically referred to and provided for in the will provided. Of course, the world was drafted, and then one of the last key reasons why 1 may be to consider having a will made for him. Is this to deal with any preemptive claims that 1 may wish to bin Ghandi inheritance provisioned for Family Independence Act 1975. This is where, although there is testamentary autonomy, that doesn't prevent people from bringing claims against your state. If they're arguing that they were left nothing or very little indie will and those of you who have had claims that have been brought under the 1975 act, you'll be aware that there is a number of potential applicants in those circumstances. So, for example, a spouse or civil partner combine your claim against their disease. Passive civil partner, former spouse of former civil part of competing claims Cohabit T. Who has had been residing with the disease for two years or more, could bring a claim. A child of the deceased convicted claim, which is also an adult child, a person treated other traveller family from bring a claim on also somebody who was maintained. But it seized immediately before the death for for valuable consideration. So there are a number of potential applicants. It can bring claims in these circumstances on that. This is where many of you will be familiar with cases that have made the news. Unless there was the recent case of Eilat against Medicine, for example, which was the Supreme Court decision off earlier this year in 2000 and 17 were by here or the the Supreme Court did not. A poli quarter appeal decision. They did nonetheless allowed a daughter in that situation who had brought a claim against her deceased mother's estate, where disease mother had left and nothing and instead left or order monies to various charities. A daughter nonetheless still did have upheld the lower court's decision to give an amount of £50,000. Now this is where, because of potential claims in these circumstances, it's very important if one is wanting to set out why they feel that particular family members should not benefit that to consider making a will because the will would enable them to, for example, of lit less so wishes kept alongside a well so that the two documents could be kept together, or maybe sometimes statements being drafted or being put together to enable I want to be able to use that in his evidence if and when there is any claim brought under the 1975 act. So therefore, just pulling this together, you can see that these are some of the 10 key reasons why 1 may wish to consider making a will. And really, as as I mentioned from the outset, sometimes people take the view that they may think that a will is not worth making, because that may not feel that they are financially in a situation where there is it sufficient monies for them to leave somebody. But as we've seen, there's a number of other reasons very significant reasons why people may wish to consider making a will. I hope that's been used before you and cannot thank you asshole ways for listening and speak to you next time. Thank you very much indeed. Bye for now