Do You Know Where Your Money Will Go When You Die?
Many people die each year not having made a Will and mistakenly believe that their money will pass to their spouse or their children or even to siblings.
We are extremely lucky that under the English and Welsh law, we are not governed by succession laws and are generally free to leave our assets to whoever we wish yet there are millions of people who have not taken advantage of this. When you die without leaving a will your assets will pass under the rules of Intestacy. This means that your assets may not go to the person you want.
Here are some examples of 'real life' issues that at VWV, we experience on a regular basis.
Mrs X dies. She is a widow with no children. She is survived by one full sister, who has severe dementia and who lives in a nursing home, and three half-sisters. Mrs X thought she did not need a will as everything would pass equally between her four siblings whom she loved and had always treated equally. Unfortunately under the rules of Intestacy the half siblings are not entitled to anything and the entire estate passes to the full sister. In order to administer Mrs X's estate an order will have to be obtained from the court. Mrs X's estate will pass to her full sister and will be no doubt be used to pay her sister's nursing home fees. The other siblings will not receive anything.
Mrs W is divorced with two adult children. Mrs W hates her ex-husband, Mr H and the children do not have any relationship with him. Child A is from Mrs W's marriage with Mr H. This child has a will in place and is married with children. Child B was adopted by Mr H. Mrs W wishes to make a will leaving her estate equally between her children but has not considered what would happen to it then. If Mrs W dies and Child B inherits a one half share of the estate but Child B dies and has not made a will, Mr H will inherit all of Child B's estate.
From the above examples you can see how important it is to not only draft a will, but to ensure you speak to a good solicitor who will delve into your family history and advise you of the options available to you.
For more information, please contact Rachael Armstrong in our Private Client team on 0121 227 3726.
This article originally featured in Downtown in Business Birmingham.