STANDARD WILL
On death a Standard Will makes ‘absolute’ gifts of the individual’s assets to the Deceased’s specified Beneficiaries. There is NO protection of these gifts from any subsequent claims on the Beneficiaries. If clients wish to have ‘conditions’ with regards to the ‘gifts’ then this would require the assets in the Will being left to Trust.
ON DEATH MR’S ASSETS PASS ‘ABSOLUTELY’ TO THE BENEFICIARIES HE SPECIFIED IN HIS WILL
The Problem: At risk from the Beneficiaries Marriage After Death, Divorce, Creditor Claims, Care Cost and IHT.
MIRROR WILL
FIRST DEATH
‘Mirror Wills’ are where the content of two Wills ‘mirror’ each other. Classically a couple leave their Estate to each other and then on their deaths, their children. Both Wills ‘mirror’ each other. Ultimately these are ‘Standard’ Wills. Again, neither Will protects the Estate on first or second death.
ON FIRST DEATH MR’S ASSETS PASS TO THE SURVIVING SPOUSE/PARTNER
SECOND DEATH
The Problem: At risk from the Beneficiaries Marriage After Death, Divorce, Creditor Claims, Care Cost and IHT.
MIRROR WILL LIMITATIONS
CHAPTER 1 – FRIEDA DIES Mum Frieda, and dad William had one son, Stuart. William had inherited his parent’s Estate many years ago. Frieda and William had Mirror Wills. Frieda died in 1986 and all was left to William including the family home.
CHAPTER 2 – WILLIAM REMARRIES Aged 67 William marries Dorothy. His previous Will is revoked. William and Dorothy write new Mirror Wills leaving all to each other than Stuart and Dorothy’s son equally. Stuart also married had a daughter whom William adored.
CHAPTER 3 – WILLIAM DIES William died in 1997. All the Estate became Dorothy’s.
CHAPTER 4 – DOROTHY DIES Dorothy died in 2012. It was discovered that after the death of William she established a new Will leaving everything to her own son only. The Estate was now £300,000. Stuart and Williams granddaughter inherited nothing. Stuart had only met Dorothy’s family once, at William’s funeral in 1997.
Just establishing Standard (Mirror) Wills clearly doesn’t protect anything. Appropriate planning with Wills and associated Trusts for William and Frieda could have protected their Estate for Stuart and the grandchildren from the above chain of events.
This blog contains only general planning and is not to be construed as advice for any personal planning. Each strategy recommended is based on individual circumstances.
