• March 28, 2024
 Family members set to lose out on inheritance

Family members set to lose out on inheritance

New legislation coming into force on 1st October 2014 is prompting wills and probate experts to encourage people to use a qualified solicitor when writing and making amendments to their will.

As part of the “Use a Professional. Use a Solicitor” campaign, the Law Society president Andrew Caplen is advising, “Dying without a valid will not only mean your final wishes may go unheeded, but a financial and emotional mess is left for your loved ones to sort out. This need not be your final legacy.

“As the law currently stands anyone can set themselves up as a ‘will writer’. It is important consumers are able to distinguish between those who are unregulated, uninsured and untrained, and solicitors who specialise in this area and offer a quality service. For full consumer protection the only prudent choice is to instruct a solicitor to prepare a will.”

The forthcoming Inheritance and Trustees’ Powers Act 2014 will see surviving spouses and partners of the deceased benefiting the most, leaving cohabiting partners, children from previous marriages, parents and siblings overlooked.

It’s estimated that over half of UK adults don’t hold a valid will. With the ever changing family dynamics, it is more vital than ever to retain an up to date will, as well as seek the assistance of a will writing professional.

James Ward, private client partner at Seddons, says it’s a positive change to modernise intestacy laws to better suit a contemporary family structure. However it will not be focussing on protecting a wide scope of family members

Prior to the new provisions, when a childless person died without a valid will, the surviving spouse or partner would inherit the initial £450,000 of the estate, after payment of all debts and expenses. This would depend on the surviving relatives of the deceased, as parents and siblings would be entitled to half of the residuary estate. If however the person who died did had children, the spouse or partner would receive the first £250,000 of the residuary estate and life interest in half of everything else left in the estate.

Under the new Act, the entirety of the estate will be inherited by the deceased spouse or partner — including those who were separated without getting divorced. Cohabiting partners will remain to have no legal intestacy rights.

“It is a shame that the Law Commission’s recommendation of a co-habitation bill has not yet been taken up by Parliament, as this would have given unmarried partners who had lived together for more than five years (reducing to two years, if the couple had a child together) substantial legal rights and protection.” says Ward.

Changes in legislation will also affect adopted children. Those who are adopted following the death of their natural parents, new rules ensure they will have the potential to claim inheritance. Within the current system, once a person has been adopted, they automatically lose the right to claim inheritance from their deceased parents.

The definition of potential claimants will now include those treated as a child within the family. Old rules state that claimants are required to be a child of deceased’s spouse or civil partner.

The new provisions will also alter the definition of “personal chattels”. Some moveable property of the deceased will now be considered as investments and will no longer lie under the definition of “personal chattels”. Clients should be advised to ensure their personal belongings are going to those they intend to inherit.

 

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