Susan Peck of Healys LLP on preparing a Will & setting up a trust

Be prepared

It is estimated that one half to two thirds of the adult population do not have a Will and for those who do have a Will, it is not always the case that it has the intended effect. The Will may be challenged on grounds of lack of capacity or undue influence. It may be ambiguous or uncertain, it may not be executed properly, it may simply be inadequate by failing to address effectively important issues including for example:

• The appointment of executors and guardians for any children under 18
• Setting an age for children to inherit and providing for funds in the meantime
• Ensuing assets are substantially protected (e.g. from the impact of care home fees)
• Managing gifts to charities or other organisations
• Reducing the tax burden
• Providing for specific funeral arrangements

The appointment of guardians can be an important issue where those with parental responsibility are no longer in a relationship. It will be difficult to resolve who the guardians should be if each parent has appointed different guardians and subsequently die at the same time. Ultimately the court will decide, but it can be a lengthy process with no certain outcome.

“Setting up a trust isn’t just for the wealthy”

With an increase in people either not having children, or for a variety of reasons, becoming disconnected from them, it is not surprising some people choose to leave their estate, or part of it, to charity. The decision in a recent case highlights the importance of carefully drafting alternative gift wording to avoid uncertainty and potential costs of legacy disputes.

Clients may see trusts as something that only wealthy people consider putting in place to ensure that, when a person dies, or is no longer able to care for them, their dependants have an income stream. There are many situations in which setting up a trust may be a logical and sensible decision to take; for example, people in a second marriage with children from respective first marriages, may want the surviving spouse to be able to live in the family home after the first death, but ultimately want their children, to benefit from the assets.

For further advice on preparing your Will please contact Susan Peck a Member of The Society of Trust and Estate Practitioners at Healys LLP (01273 685888) susan.peck@healys.com