An up to date will is essential for making the transition of your passing bearable for those around you. By amending your will through a codicil you can save your family and friends any potential disputes after your passing.

The importance of creating a will 

Despite it being the only way to make sure your wishes are carried out after your death, there is still a significant portion of our population in the UK without one. In the UK around 59% of adults don’t have a will and a total of 5.4 million are unaware of how to create one. The importance of creating a will is that you have the ability to control exactly where your possessions go. Creating a will is truly the only way to protect your estate in its entirety when you pass.

This is why we want to raise awareness and understanding of wills

By raising awareness we can impart our knowledge to some of those 5.4 million adults and strive to increase both awareness and understanding of the importance of a will. 

Specific amounts and items cannot be controlled unless documented by a will. For those with a will in place, the process is simple and lets you share the inheritance with family, friends or even those you wish to inherit some of your assets.

Those who die without a will leave their assets to the rules of intestacy. Intestacy is a complex process that leaves all possessions to only close family members and partners. 

Rules of intestacy complicate inheritance 

The worst-case scenario for those without a will starts the process of intestacy. This is a list of people who have no right to inherit without a will:

• Unmarried partners 
• Lesbian or gay partners (not in a civil partnership) 
• Carers 
• Close friends 
• Those related by marriage

By law, your assets cannot be passed onto these figures without a documented will. If you die with no surviving family members The Crown will claim your estate, this is known as a bona vacantia.

Other important benefits of having a will 

For those with kids or pets they love. A will gives you the choice to decide where you want them to go where you die. If your child is a minor you can nominate a guardian so you can have peace of mind when you pass that they are safe without you there. Similarly, you can name a beneficiary for your pet. In both circumstances, you can leave funds behind to aid them with the future care of your pet or child.

You can also support your favourite charities by leaving behind a monetary donation or passing belongings on too. This allows you to support your favourite causes even past your death.

Perhaps the biggest area that having a will affects is reducing any future family disputes. Your will is legally final and prevents disagreements about what assets are given to who.

Amending your will

Any time a major personal event occurs we recommend changing your will or considering doing so. A reliable timeframe is to have your will reviewed at least once every five years. 

Without amending your will through a codicil you could miss out on leaving significant portions of your estate or assets. Additionally, you may find who you wish to inherit your estate may change throughout your life. Therefore it is invaluable to keep your will updated through the use of a codicil.

What is a codicil?

If you already have a will then this is relevant to you. So what is a codicil? In simple terms, it is a document that allows you to alter the outcome of your will. Without having to create a whole new will, you can have a codicil made to supplement your original will. Without a codicil, a new will would have to be created in its entirety.

Why choose a codicil?

Codicils consequently are typically cheaper than having to write a new will. In spite of this, the document is still fully legally binding.

How we can help you create a will

You can speak to a member of our staff on 020 8891 6141. Through them, you can create your first will or change your current will.

You can find more information on our expert private client team, they have the specialist knowledge to give you the first-class legal service you need. Through their services, we aim to reduce your inheritance tax and present solutions to any concerns you have surrounding your will. So don’t hesitate to get in contact with SRB today. 

The events of the last year have of course given rise to well-documented stories of personal tragedy and hardship. However, there has been one unintended consequence of the situation that has started to receive more attention as we progressively move towards a more normal time.

Official figures have shown that gross savings as a proportion of disposable income for 2020 was 16.3%, a record, up from 6.8% in 2019. Whilst the pandemic has clearly impacted adversely on many, for some, not spending on travel and leisure, or eating out or commuting means money has been put aside. Much of this money is in current accounts waiting for a “longer term home”. If you are one of the lucky ones and do not intend to immediately spend this surplus, an alternative option may be to consider “gifting”. For those of slightly more mature years, if you have accumulated surplus money, you can consider making gifts of money up to your £3000 annual allowance. This can be to family or friends who may have experienced greater hardship in the Lockdown. You may decide to be more generous with a gift of more than £3000 and make a PET (potentially exempt transfer). Such gifts are not subject to inheritance tax if the donor survives for 7 years or more following gifting.

We are always happy to advise on these delicate matters and help to ensure that you document your decisions correctly as you seek to be generous with family or friends.

When a Will is made it can be difficult to predict what changes may happen to a family in the future, and it is even harder to predict changes in the law. Fortunately, all is not lost if a Will is no longer fit for purpose, or if the opportunity to mitigate tax liability has apparently been missed.

Deeds of Variation make it possible to rearrange where an estate goes after death so that inheritance tax liability is mitigated for beneficiaries, such as children or spouses.

They can also be used when someone dies without having made any, or any valid, Will (death intestate). Current rules mean that if a husband or wife dies without a Will, then the surviving spouse may be put at an unintended disadvantage in terms of what they inherit and a Deed of Variation can be used to redirect inheritance.

Following a 2015 HMRC review of Deeds of Variation, they were found to be an unobjectionable method of tax mitigation and so a family’s wealth can still be dealt with in the most efficient manner without the need for a new Will.

If you feel you would benefit from guidance on making or changing a Will, or would like to know more about Deeds of Variation in general, please contact the Private Client department at Stone Rowe Brewer LLP on 0208 891 6141 or by email at a.spall@srb.co.uk.  

There has been significant case law in recent years regarding the duties and liabilities of trustees when faced with decisions regarding whether to sell or retain land, incur expenditure on repairs or to take legal action (Brudenell-Bruce v Moore [2014], Jeffrey v Gretton [2011], Cotton v Earl of Cardigan [2014] and Page v West [2012])

Notably, in Brudenell-Bruce v Moore [2014] a beneficiary with a 49% share in the trust was unhappy with how the trustees had managed the trust’s assets. This beneficiary brought a number of claims against the trustees for allowing a building (forming part of the trust’s assets) to fall into disrepair, failing to re-let a property and allowing a non-beneficiary of the trust to live rent free in one of the properties. Both trustees were found to be in breach of trust, with one trustee ordered to repay the remuneration he had received as trustee and removed as trustee.

In Jeffrey v Gretton [2011] we were reminded that trustees are held to the standard to be expected of a reasonable, prudent man of business, meaning they need to review trust investments and to seek professional advice if they are unsure on whether to sell trust assets (e.g. land or property).

It is a trustee’s paramount duty to generally provide the greatest financial benefits for present and future beneficiaries, but, as case law shows, it is not always easy to know how best to do this and proper advice from reputable experts is essential.

If you feel you would benefit from guidance, as a beneficiary or trustee, please contact the Private Client department at Stone Rowe Brewer LLP on 0208 891 6141 or by email at a.spall@srb.co.uk.