Why Families Should Talk About Inheritance.
An increasingly common phrase we hear from clients when we ask them about their wishes when they pass away is, “My loved ones know what I want”.
Sadly, this assumption is now giving rise to a higher number of family disputes that could have been avoided by simply discussing inheritance matters during their lifetime.
A recent survey by Irwin Mitchell found that just one in six parents over the age of 55 have discussed the topic of inheritance with their children.
Furthermore, findings from YouGov revealed that out of 2,000 adults, just under half had not discussed inheritance with anyone in the previous 12 months.
This could be due to a variety of reasons, including:
► Fear of confronting the reality of death
► Uncertainty about how to divide assets
► Avoiding a difficult discussion with family members and potential arguments
► Not wanting to discuss matters that you consider very personal
Plus others.
However, one thing is sure – neglecting to discuss one’s Will can lead to a range of legal and emotional complications.
This article explores the importance of having open conversations about your Will, and why seeking legal advice is imperative to ensure that your intentions are properly addressed and circumstances catered for.
An example is set out in the case study below:
Mr A has two children, a daughter and a son. The son is currently going through a rather nasty divorce and Mr A is worried that any inheritance would fall into the discussions surrounding financial settlement.
Mr A makes a Will at home stating that his estate is to pass to his daughter in its entirety. The assumption is that she would “look after” an inheritance for his son; however, this was not specified in the Will, nor was it communicated to either child.
Mr A dies, and his daughter inherits the estate. There was a falling out between daughter and son immediately before Mr A’s death meaning that they are not in contact. Mr A’s son is left with nothing under the terms of the Will and proceeds to make a claim against the estate.
In the case study above, the daughter is under no legal obligation to provide any share of the estate to her brother, giving rise to a claim which will inevitably lead to a further breakdown in the sibling relationship – this could not have been further from Mr A’s intentions.
Whilst this is a simplified course of events, in practice, scenarios such as this are sadly seen far too often because the topic of inheritance is not discussed and dealt with properly.
Had Mr A sought legal advice, he would have been advised on the most appropriate way to structure his Will to ensure that his wishes were upheld, and his intentions detailed clearly for his children to understand.
Such discussions can protect your legacy, prevent family disputes, and offer peace of mind, whereas his estate is now likely to be embroiled in expensive litigation, which can go on for several months and, in some cases, years.
Moreover, there are legalities that need to be adhered to in order to ensure that the Will is valid. The issue of an improperly executed Will often does not come to light until it is too late.
An invalid Will could mean that your estate may go to people who you had otherwise wished to exclude, and the ones you wished to inherit your estate may go without.
Our Advice
Your main priority should be to ensure your Will is up to date, reflects your wishes on how your estate is to be distributed (and to whom), is legally sound and as tax-efficient as possible.
While we certainly recommend that people discuss their Will with family members, we also understand the difficulty in doing so, especially if there is the very real possibility of family arguments, which you may want to avoid.
To that end, arranging a meeting with one of our Solicitors will give you the opportunity to discuss your wishes in a private, strictly confidential environment.
We can update any existing Wills and advise you on the best course of action to prevent legal problems and potential inheritance disputes while making your estate as tax-efficient as possible.
Even if you are completely open with your family about your final wishes, we recommend updating your Will with our team to ensure there are no potential legal pitfalls or unexpected IHT bills.
To arrange a meeting, please contact:
01792 310731