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Page 2 of 2 A will with strings attached Tacking a condition on to a gift left in a will may have its appeal, but it's highly dangerous and can lead to your will being called into question. The courts don't look kindly on wills that try to exert undue influence from beyond the grave. For example, you can't make a gift conditional on a beneficiary not marrying a particular person, not having sex or even not breaking the law. In fact, your beneficiaries have the right to ask the court for permission to collect their inheritance without having to meet any condition you set. If the court deems that the condition is unreasonable they will void it. Likewise, if the court decides that the condition is open to interpretation (not clearly defined), they may still void it. Using conditional gifts to play God is a recipe for trouble! A will that creates an accidental life interest You have the choice of leaving your beneficiaries a gift outright or the life interest in a gift. By giving outright you hand over the asset to your beneficiary lock, stock and barrel. By creating a life interest gift you allow your beneficiary to have an income from the asset but they are barred from selling it outright. Be careful that you don't create a life interest unintentionally. Writing in your will that your spouse should get everything and on their death it should pass on to your children automatically creates a life interest. However, you might have been merely trying to say what you want your spouse to do with the gift. Keep your intentions clear. Be specific about any gift you make in your will. If you leave money to charity, state the charity's full name and charity number. If you're not crystal clear, the gift may fail. If that happens, the gift simply goes into the estate residue and won't find its way to the intended beneficiary. An altered will Making changes to a will can be tricky. You can change a will in two ways. You can use a codicil or write a completely new will. A codicil is a separate document drawn up after the original will that adds to or alters the will. Codicils are normally used to change an executor, trustee or guardian, or to alter gifts to a beneficiary. Codicils can be complex and have to be precisely worded. A will appointing elderly executors It might feel right to name an executor who is older than you are, perhaps quite a bit older, and after all, an executor has to be organised, literate, numerate, trustworthy, good at handling money and not afraid of a bit of hard work. However, if you live to a ripe old age then your executor might die before you. If the executor you appoint in your will dies, then someone else, usually a beneficiary, must step into the breach and ask the court for permission to administer your estate. Tip: Appointing more than one executor to share the work of distributing your estate and to ensure that a second pair of eyes sees everything that is done is a good idea. Ideally, aim to appoint two or three executors. Appointing too many executors, or executors who live far away, can lead to delays in administer your estate. Remember, your executors will have to meet at least a couple of times to carry out the wishes in your will. You can call in the professionals and appoint a solicitor or a bank to act as executor, but they charge for their services. An elderly will A will made many moons ago can have as unsatisfactory an outcome as one not being made at all. Life moves on, and with it you become richer or poorer, you move home, your children are born and grow up, and beneficiaries, executors, guardians or trustees may die. Your will needs to reflect these changing circumstances. If your will doesn't move with the times, then your loved ones may not be properly provided for or HMRC may take a large bite out of your estate. Review your will every year to make sure its terms are up-to-date. Think of your will as a new car: If you don't maintain it, over time it may not get you to where you want to go. Find out more For the easiest route to peace of mind for anyone concerned about the future of their estate, a book just published called Wills, Probate & Inheritance Tax For Dummies by Julian Knight (Wiley Paperback Original) covers all aspects of writing a will. It will also simplify the paperwork of probate (the task of administering someone else's will) and offer the reader advice on ensuring their estate is tax-efficient for their children. |
