Battle of wills?

Apparantly the recent falls in property and equity values are having unexpected consequences for the beneficiaries of some estates, leading to a marked rise in the number of contested wills.

Julia Rangecroft of McCormicks Solicitors in Harrogate, in a recent interview for the Yorkshire Post, said that in the last six months she has seen an increase in the number of inquiries about rights to challenge a will as the actual value of the bequest is now far less than expected. Essentially any bequest, including those made to charity, may be disputed on the grounds of validity, or because those with reasonable expectations of being beneficiaries have received nothing or not 'enough'. The courts don't see it as equitable to ignore people who've had those kinds of close relationships with the testator during their lives.

As estate planning and inheritance tax planning are integral parts of our client work, we were very interested to read “Points of Departure – Tips from McCormicks for reducing tension over wills” in the article, which were as follows:

• Be realistic about the needs and rights of your dependents when deciding what you want to give to whom. If you are in business, you need to be realistic also about the effect your death will have on that business as well as your family.
• Work out how much you are worth, but recognise that this can go down as well as up, and there may not be enough money in the pot to satisfy all of your oblligations and wishes. Take into account which assets are liquid and which will be needed to provide a home or support a business.
• Prioritise gifts, so that if there is not enough money to provide for everyone as you would wish, the gifts are scaled back in the right order. In doing so, realise that you are unlikely to update your will as often as circumstances really require, and the situation of beneficiaries and the size of the estate could be very different at the time of your death. Consider life insurance if there is a shortfall.
• Manage expectations or at least try not to create false expectations. If you anticipate disappointment/hostility, consider leaving a letter of explanation regarding your decisions.
• Regarding bequests to charity, you could specify that no more than a certain percentage of the estate should be given to charity, perhaps with a maximum sum.
• A well-drafted will should reflect detailed discussions about all of the possible issues arising from your wishes, and those discussions can be with your family and financial adviser, not just your solicitor.

As usual, one of the key lessons here is that decisions about money (and wills are essentially about money) need to be grounded in life, not cash. Whilst it is perfectly acceptable to hand write your own will on a blank sheet of paper (which will be valid if signed and witnessed), there can really be no substitute for good and sympathetic professional advice, whether from a solicitor or financial planner, or ideally a combination of the two.