SUCCESSION PLANNING: UK citizens not discussing inheritance with their families | STEP

Source: SUCCESSION PLANNING: UK citizens not discussing inheritance with their families | STEP

 

There’s a shortage of Round Tuits.

There’s never enough time

Don’t leave it to the last minute

How much of a mess do you leave behind?

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Buying a house? Have you made a will?

In recent conversation with my colleague, we noted that few conveyancers [1] talk in any detail about whether a person has made a will or not. Few conveyancers actually talk about tenancy in common either. Of course it’s all there in the fine detail, somewhere in the terms of engagement, or in the closing letter that no-one really needs.

That makes sense – it’s stressful buying a house. Who needs to think about dying as well? And who can afford to make a will?

But hang on a minute – that house will be worth hundreds of thousands – the most valuable asset you own. And you either don’t know or don’t care what happens to its ownership when you die? Surely you should find out? Make a plan?

Well yes. And lets be honest, since there is no such thing as a common-law spouse, no such thing as automatically inheriting from your partner, or even automatic entitlement to all that your spouse (or civil partner) owned, it really should be looked into.

And second marriages with children on both sides? Yes! go make that will.

[1] (the sort of lawyer that deals with buying and selling houses here in the UK)

Lessons from ‘Clarity on Capacity’ | The STEP Blog

Lessons from ‘Clarity on Capacity’ | The STEP Blog.

The original article was very interesting indeed.  That, coupled with some practical advice on how to get cooperation with a medic at the right time would be very interesting.

 

I have had the doctor refuse to give a capacity opinion on the basis that he was an NHS doctor, and this did not fall under NHS work – it was a private enquiry or opinion, and therefore not something he was prepared to do.

Spouse gets the lot, but what about the children from the first marriage?

Amendments to intestacy and reasonable provision rules in England and Wales | STEP.

 

Very interesting:  it might be simpler, but the ills the old system was set up to avoid are now not cured.

 

I could almost wish for a notice to be put up in the Registrars Office, for those contemplating their second marriage:  make a will!

Why yes, thank you for holding on to the bridle of my white charger…

What is a grant of probate?

A grant of probate is the word used to describe the process of confirming the right of named individuals to deal lawfully with the estate of a person who has died.

If a person has died leaving a will, then the people who are named as executors are those people entitled to take out the grant of probate. The authority of an executor to act stems from the will itself, and is confirmed by the grant of probate.

If the person has died without leaving a will, or has died leaving a will, but the executors have predeceased, then there is a statutory order of who is entitled to take out the grant of letters of administration. The authority of the administrators stems from the grant of letters of administration itself.

In order to pass through the process of the court, the executors, or prospective administrators must complete an oath, whereby they swear the extent of the estate, the full name and address of the person who has died, details of the deceased’s birth and death and age at death, together with any other names by which the deceased was known. The Personal Representatives also swear that the deceased was domiciled in England and Wales and that the will attached was the last known will of the deceased.

In addition to citing the basic facts, the PRs also state that the estate was of a certain value. They then go on to promise that they will deliver up to the court accounts of the estate if requested, will gather in and distribute the assets and pay the liabilities lawfully.

If the assets are relatively few, and Inheritance Tax does not need to be paid (and there are no complicating features of the estate), then the probate registry will accept a short Inland Revenue form citing the values of the items in the estate. If the value of the estate is high (or if there are complicating features) then the longer form needs to be filled in. This long form asks more detailed questions, but both documents need to be completed with a care for the detail that is appropriate – it is not enough to make an estimate of value if you are not making an effort – if in doubt, employ someone who can tell you how much that Meissen china or that Georgian silverware is worth. If your dad was into antiques, then get a valuation – if it is all reproduction, then perhaps it might not be a high value after all. If you are claiming a transferrable tax band, then you will also need to be able to show this on the relevant form – whether it is a short form that is appropriate or a long form.

So – you tell the Inland Revenue what the estate is worth, and pay the tax (or a proportion of the tax). You take the oath and swear (on the Bible, Koran, other religious text, or solemnly affirm) the oath saying you will do the right thing. And then submit the documents to the probate registry, who, in due course, send a grant of probate. Congratulations – the will has been proved, is now a document of public record, against which you can be held to account. You may now collect in the assets, pay debts, and deal with the estate according to the law. In the case of there being no will – your authority starts now, and you may collect in assets and enter into contracts on behalf of the estate (as opposed to in your own name).