Wills Workshop
Surveys indicate around 65% of the adult population in England and Wales have
NOT made a Will
Why don’t people make Wills?
• Ignorance of the law
• Superstition
• Don’t like to consider death
• Something to be put off until tomorrow
• Nervous about visiting lawyer/cost
Reasons to make a Will
• Ensure your wishes are carried out
• Provide for your loved ones
• If you don’t leave a valid will your estate will pass in accordance with the Rules of Intestacy
• Appoint Executors/Trustees – choose people you trust to administer your estate
Reasons to make a Will
• Appoint Guardians for your minor children
• Specify your funeral wishes
• Obtain estate planning advice/how to protect assets
• Avoid unnecessary disputes
Important points to consider when appointing Trustees and Guardians
• Must be over 18 years of age.
• Should be honest and trustworthy
• Practicalities – are they capable of doing the job/is their location going to prove difficult ie living abroad
• Preferably not in dispute with other members of the family/get along with co-executors/trustees
• Be willing to accept the appointment
Legal Requirements for a valid Will
Testator (person making the Will) must be of sound mind
Testamentary capacity is as set out in the case of Banks v Goodfellow (1870) per Cockburn LJ
“…a testator shall understand the nature of the act and its effects; shall understand the extent of the property of which he is disposing; shall be able to comprehend and appreciate the claims to which he ought to give effect ….”
Legal Requirements for a valid Will
Testator must be aged 18 years or over
Will must be in writing
Will must be signed by Testator or signed on his behalf in his presence under his direction
Validly witnessed (two witnesses in presence of Testator)
Legal Requirements for a valid Will
Some exceptions
Age 18 requirement: It is possible in certain circumstances for members of the armed forces to make a will under age 18 years
Testamentary capacity: Under the provisions of the Mental Health Act 1983, the Court of Protection may approve the making of a Will or codicil on behalf of someone who is mentally incapable of doing so themselves (a statutory will)
Legal Requirements for a valid Will
Who can be a witness to a Will?
Anyone who is:• Not blind• Understands the nature and effect of witnessing a Will
Who should not witness a Will?• Anyone who is a beneficiary of the Will• Anyone who is married to/civil partner of a beneficiary
named in the Will
What happens after death
If you have made a Will
• Your Executors derive their power from the Will and may insure property and take steps to protect the estate
• Your Executors will make application for a Grant of Probate to administer your estate
Estate Planning
• Inheritance tax (IHT) current nil rate band 2014/15 £325,000 rising to £329,000 in 2015/16
• Married couples and civil partners are able to transfer an unused nil rate band
• Married couples have £650,000 free of IHT available in the current tax year
• Annual gifts of £3,000 exempt from IHT• Gifts made more than seven years before death
outside estate
Trusts within your will
• Funding nursing care• Protecting half value in home using trusts written
into your will• Life interest trusts• Discretionary trusts• Trusts for minors
What happens after death?
If you have not made a Will
• It is necessary to determine who is entitled to apply for a Grant of Letters of Administration (see our next slide explaining the Rules of Intestacy) to be appointed as Administrator of the Estate.
Rules of intestacy in England and Wales
Any questions?