When I read this morning that attempts to block Probate had risen to a record level in England last year it reminded me of the importance of ensuring that Wills are correctly written to achieve your wishes; but I continue to be shocked by the limited regulation of Will Writing Services we see springing up everywhere all over the country and so many Wills which are just wrong.
I was thinking back this morning about a really driven, intelligent business person; whom I had been advising for 20 years. It was a pleasure to work with him. It must be around 20 years ago that Jeremy told me that he had a brain tumour, and it was probably going to be terminal. Jeremy was wealthy and ran two brilliant businesses. I had tried to persuade Jeremy for the previous ten years to marry his partner with whom he had been living with for the last twenty 20 years. Jeremy always pushed this option away telling me that he would get around to it when he was less busy. I even tried to encourage Jeremy to get married if only for tax planning purposes but like many driven successful people his main focus was his business. Now that Jeremy was terminally ill, we needed to act fast and ensure that he was married as quickly as possible and new Wills were written immediately.
The correct tax efficient Wills were written in contemplation of marriage and Jeremy completed a Letter of Wishes in relation to some personal items he wished to pass on and to explain the reasons behind the choices he had made on amounts different beneficiaries would be receiving. Jeremy and his partner were married within two or three weeks following this awful news of his illness. I felt that the right job had been completed albeit way too late and with unnecessary risk. Marriage and time saved around £3 million in Inheritance Tax.
I attended Jeremy’s funeral and felt very uncomfortable standing directly in front of his coffin. Jeremy’s son, whom I had never met, introduced himself to me and immediately informed me that Jeremy had lost £2m on an investment proposition before his death. I was actually aware of this and Jeremy had been so embarrassed by being stupid accepting calls from an investment house in America and throwing away £2 million in bad investments. A lesson to us all. The son, gosh what an unpleasant awful individual.
In Jeremy’s Will he left, I say only, £600,000 to his son with the rest of the money going to his new wife. Jeremy’s instructions were also to set up trusts to ensure that school fees and university fees were always fully funded for his grandchildren. It is nice to look back and know that all of Jeremy’s wishes were achieved and his wife is still alive today.
However, to my shock, although on reflection it should multiply the shock, this awful son challenged Jeremy’s Will to state that father with cancer was not of sound mind and therefore the Will was invalid. I look back with satisfaction that I had arranged before Jeremy’s death for him to be seen by two independent doctors both of whom confirmed independently that Jeremy was of sound mind. The son’s challenges were defeated.
The purpose of this rather long story is to highlight the importance of having the right written tax efficient Wills in the first place. More than half the UK public do not have a valid Will in place. Dying intestate is a horror often leading to probate delays and inheritance tax being paid unnecessarily.
A reminder for us all is to have the right tax efficient Wills in place. I would recommend you write regular Letters of Wishes so that if there are attempts to block Probate known as caveats you have good evidence in place to ensure that your wishes are followed.
Because we see so many Wills that are incorrect, we arrange for specialists to review Wills for our clients without cost.
Trevor Downing FPMI FPFS
