The Risks of Dying Intestate

Without a valid Will, there are no protective measures in place to safeguard Bear’s inheritance. While he will receive the funds in full when he reaches adulthood, there are no instructions for how those funds should be managed in the meantime, nor is there any structure for long-term protection or guidance.

Had Liam created a Will, he could have:

• Appointed Executors and Trustees to manage the Estate and any ongoing income (such as royalties).
• Named Guardians to care for Bear, if needed.
• Provided for other loved ones, such as a partner, friends or family.
• Set out specific instructions on how and when Bear should benefit from the Estate.

A Surprising Oversight

Given Liam’s profile and wealth, it is likely that he had a team of professional advisers around him—accountants, lawyers, agents, and wealth managers. It is surprising that a Will was not in place, particularly given his personal circumstances: substantial assets and a young child from a previous relationship.

Of course, he may have received advice and simply delayed acting on it. But the consequences of that delay are now significant. There is no plan in place for future income streams from Liam’s music career, no provision for his bereaved partner or wider family, and no control over how Bear’s inheritance will be used.

Why This Matters to Everyone

While this case has gained media attention due to Liam’s fame, it highlights a much broader issue. More than 56% of adults in the UK still do not have a will in place. Many assume they don’t need one, or believe their affairs are simple. But the reality is that dying without a Will removes any control you have over what happens after your death.

Protecting Your Legacy

A valid will is not just a legal document—it’s a way to take control of your legacy. It ensures your wishes are honoured, your loved ones are provided for, and your affairs are handled by people you trust.

No matter your age, wealth or circumstances, don’t leave things to chance. Take advice, act now, and protect what matters most.

If you’d like help preparing or reviewing a Will, our Private Wealth team at Sherrards is here to guide you.

📧 law@sherrards.com

Reflecting on his instructions for his assets, which he left on his phone, he said “that first night I wrote a Will, I thought I was going to die”. 

Although the act of documenting his last wishes, during this traumatic life event, will be understandable to many, it is important to outline that Max’s iPhone Will would not have been a legally binding Will.  Although digital text is technically writing, to have been considered a valid Will, a physical document signed by him and witnesses would have been required.  This will be a surprise for many given our reliance on phones in this digital age. 

The Law Commission is considering the current legislation and whether electronic Wills should be recognised.  However, until any changes take effect, it is essential that a Will is on paper to be legally binding.

Requirements for making a valid Will 

Wills are primarily governed by the Wills Act 1837. Under section 9, no Will is valid unless:

• it is in writing,
• signed by the testator, or by some other person in their presence and by their direction;
• with the intention of giving effect to the Will;
• Signed in the presence of two witnesses, who are also in the presence of the testator. 

 

You should also be aware that if you need to prepare a Will in another country, for example if you own assets abroad, the requirements for making a valid Will there are likely to be different to the UK requirements.

Implications for an Invalid Will

Following a death where there is no valid Will in place, your estate would pass under the Intestacy Rules, whereby the law will determine who will inherit your estate.  This may result in your assets not passing to those you would wish to benefit, for example, as in Max’s case, long-term partners who are not married to the deceased would not automatically inherit under an intestacy. 

How can Sherrards assist you with your Will 

Max’s story highlights how important it is to ensure you have a valid Will in place.  To avoid being left without a Will, and your wishes not taking effect on your death, we encourage you to contact us at Sherrards.  By consulting with one of our Private Wealth experts, we will assist you in creating a valid Will, specific to your personal circumstances, which will provide security for your loved ones.  

 

If you would like advice on preparing your Will or have questions about the validity of your existing arrangements, our dedicated Private Wealth team at Sherrards is here to help.

1. Gifting Money to Your Children

Giving money during your lifetime is a simple way to pass on wealth while cutting down on inheritance tax (IHT). Each year, you can gift up to £3,000 tax-free, and any unused amount can be carried over to the next year. Small gifts of up to £250 per person annually are also tax-free. If you are making larger gifts, they may be exempt from IHT if you live for seven years after giving. Wedding gifts provide another opportunity to transfer wealth tax-free, with parents able to give up to £5,000 when a child gets married, and some other relatives able to give smaller amounts tax free.

2. Using a Family Trust

Trusts can be a great way to protect money for your children and ensure it is used wisely. There are several types of trusts to consider. Bare Trusts allow children full access to the money or assist when they turn 18, while Discretionary Trusts give trustees control over how and when funds are distributed and are a useful way if getting money out of an estate whilst retraining control of how and when the trusts assets can be paid out to your children.  Interest in Possession Trusts provide beneficiaries with income from the trust without access to the original capital. Settlor-Interested Trusts allow the person setting up the trust to benefit from it, though they come with specific tax implications. Trusts can safeguard wealth, reduce inheritance tax liabilities, and help control how children receive their inheritance, preventing mismanagement or misuse.

3. Smart Saving with Junior ISAs and Pensions

Building financial security for your children does not just involve direct gifts or trusts. Junior ISAs allow parents to save up to £9,000 per year in a tax-free account that children can access at 18. Children’s pensions are another overlooked but powerful tool. Parents can contribute up to £2,880 annually, with government top-ups bringing the total to £3,600, setting their children up for long-term financial stability.

4. Make a Will – Don’t Leave It to Chance

A will is essential to ensure your assets go where you intend after you pass away. It allows you to appoint guardians for your young children, ensuring they are cared for by people you trust. You can also include provisions for setting up trusts within your will to manage inheritance for minors. Careful estate planning can also help minimise inheritance tax, making sure more of your wealth benefits your family instead.

Final Thoughts

Planning now means peace of mind later. Whether through gifting, trusts, ISAs, or a will, taking proactive steps today can make a big difference for your children’s future.

A private wealth solicitor can guide you in making the best choices to protect and grow your family’s financial legacy.

Please note that this article does not constitute tax advice, and the best approach will depend on your personal circumstances. It is always recommended to seek professional advice tailored to your situation.

To find out more go to our dedicated Private Wealth webpage or click the contact details below. 

 

Understanding the Basics:

A will is a legal document that outlines how a person’s assets should be distributed following their death. Having a clear and comprehensive will is essential to ensure that your partner is properly taken care of and that your wishes are respected.

In many jurisdictions, if there is no will in place, the law dictates how assets are distributed. In the UK, this falls under the Intestacy Rules. This default arrangement may not align with your intentions, particularly when it comes to non-traditional family structures. Therefore, a will allows you to have control over who inherits your assets, including your partner.

Choosing the Right Executor:

An executor is the person responsible for carrying out the wishes outlined in your will. When selecting an executor, consider someone you trust implicitly, as this role involves handling financial matters and ensuring the proper distribution of assets. It is crucial to discuss this decision openly with your partner and ensure they are comfortable with your choice.

Guardianship for Children:

For couples with children, clearly stating your preferences for guardianship in your will is vital. This becomes especially important for same-sex couples, as legal recognition and protection for non-biological parents may vary. Clearly defining your wishes can prevent potential disputes and ensure the well-being of your children.

Protecting Your Partner:

In many countries such as the UK, marriage equality has granted same-sex couples the same rights as heterosexual couples. However, it is essential to stay informed about local laws and regulations, as they can vary. With global mobility on the increase and many people moving abroad for work or other considerations, this may potentially affect one’s place of relocation. If marriage is not an option or does not provide sufficient protection, legal documents such as a will or power of attorney become even more critical.

Regularly Review and Update:

Life is dynamic, and circumstances change. It is advisable to review and update your will periodically, especially after significant life events like marriage, the birth of children, or the acquisition of new assets. Ensuring that your will reflects your current situation will help avoid complications going forward.

Conclusion:

In the pursuit of love and happiness, legal matters should not be overlooked. Same-sex couples, like any other, can benefit greatly from thoughtful will and succession planning. By taking the time to understand and navigate these essential legal steps, you not only safeguard your partner’s future but also ensure that your wishes are respected and your legacy is preserved.

Sherrards is part of an international alliance of legal and accountancy firms, Alliott Global Alliance, represented in 96 countries and we can connect you with advisers if you are looking to move abroad.

To find out more, contact Nicole Marmor. 

If your children are under the age of 18, have you thought about who should care for them if both parents passed away?

According to research, seven out of ten parents in the UK parents do not have a legal guardian in place to care for their children in the event of their deaths.

If both parents with parental responsibility die and a guardian is not appointed in the will, then the courts will decide who looks after your children. There is no guarantee the court will appoint the person or people you would have chosen as guardians, so it is important to make the decision yourself.

Whilst a mother automatically has parental responsibility, unless the father is married to the mother, listed on the birth certificate, or a has court order bestowing parental responsibility on him, he will not automatically become the legal guardian if the mother dies.

A common misconception is that any children will automatically go to grandparents. This is not the case.  In the absence of a will appointing the grandmother/ grandfather as guardian, it may be necessary to apply to court to formalize this appointment. In some scenarios, there is even the risk that children are taken into care while guardianship is clarified.

Additionally, while godparents can have a crucial role in the lives and upbringing of children, they have no legal rights in respect of children in the event that their parents die. If you wish your children’s godparents to also be their legal guardians, you should ensure such an appointment is made by will.

Deciding who the guardian(s) should be is a difficult decision, so when appointing the guardian(s) here are some things to consider:

• Do your children know the guardians? If so, what is their relationship like?
• Do the guardians have the financial ability to raise your child if your estate cannot cover all the costs?
• Do the guardians have similar beliefs, values, and outlook in life as you do?
• Where do the guardians live?
• What are the guardians ages?
• Are the guardians likely make similar decisions to those that you would have made yourself for your children?

Also bear in mind, if each parent appoints different guardians the guardians must agree on decisions relating to the children, and if they can’t, it will be for the court to decide.

Finally, it is worth noting that your chosen guardians do not have to accept the appointment, so it is important that you discuss it with them, and they accept the responsibility, before appointing them.  However, providing your guardians are willing to accept the guardianship, you’ll have peace of mind you have done as much as possible to protect your children, even if you’re no longer around.

The intestacy rules (when you die without a valid will) are set by law and can be summarised as follows:-

• Married/civil partner with no children. If you die without a Will everything goes to the spouse or civil partner
• Married/civil partner with children, and you die without a Will assets up to £250,000 and personal possessions (not land) go to the spouse or civil partner. Assets above that limit are split 50/50 between the spouse and the children.
• Unmarried, living with someone, with or without children, if you die without a Will the cohabitee receives nothing. Where there are children and/or grandchildren, they get everything. Where there are no children, the deceased’s assets go to their siblings and parents.

Where there are no children or other dependants, no parents, grandparents, siblings, cousins, nephews, nieces or aunts and uncles (blood relatives not relatives by marriage), the whole estate goes to the Crown. To have share in the estate the cohabitant would have to make a formal claim under the Inheritance (Provision for Family and Dependants) Act unless all other potential beneficiaries were over 18 and agreed that some assets passed to the co-habitant.

What does all this means for inheritance tax

One of the key inheritance tax perks is that spouses/civil partners can bequeath any amount to each other tax free. However giving assets to children will trigger an inheritance tax bill if the gift exceeds the “nil rate band” or threshold of £325,000 per person plus an additional sum (currently £125,000 as long as the whole estate is not worth more than £2.2Million) in relation to homes passed to direct descendants.  If everything passes to a spouse/civil partner, then on their death, the first spouse/partner’s tax free threshold can be added to their own – thus doubling what can pass before tax. Everything that passes down above the tax free allowances is taxed at 40% of that value.

Avoiding the intestacy rules, is not the only reason it is a good idea to make a Will. With a Will:-

• You leave clear instructions about how your estate is to be distributed.
• You choose your own executors – the people who manage the estate.
• You appoint guardians to look after your children if they are under 18, until they come of age. You can also make financial arrangements for their benefit.
• You can make specific gifts to friends or family. These can range from items of jewellery to sums of cash.
• If you have remarried, you can ensure any children from your first marriage get a share of your estate.
• You to make gifts to charities
• You may avoid family disputes.

And just in case you were wondering, making a Will does not bring forward the date of your death!

Contact Nicole for more information.

Considering leaving a legacy for your pet?

Many will have heard the tale of Karl Lagerfeld’s cat Choupette, who reportedly inherited a substantial sum from the German fashion designer’s £153 million estate.  Whilst many of us with pets may not have the resources to fund such a lavish legacy, have you thought about what will happen to yours should they survive you?

According to statistics from the PDSA, 49% of UK adults owned a pet in 2018.  Being a dog owner myself, I know that pets are often considered an important part of the family.  Their welfare, and the cost of caring for them, should be given thought when making or updating your Will.

Whilst owning a pet is a source of pleasure it’s also a financial burden.  As an example, the average cost of dog food alone is approximately £200 to £400 a year according The Money Advice Service, with many of us spending significantly more than that on treats and accessories.

In England it’s not possible to leave a legacy directly to your pet.  However, you can leave your pet to a friend or member of your family, together with a gift to provide for their maintenance.   This doesn’t guarantee that they will be willing to accept the responsibility of looking after your pet, so you may wish to consider making the gift conditional on them doing so.  And you should certainly ensure you make it conditional on your pet surviving you.

If the beneficiary is unable or unwilling to care for your pet, then a backup plan is a good idea.  Many charities offer rehoming schemes, and my own dog is signed up with the Dogs Trust Canine Care Card scheme.

To find out more, please contact Nicole Marmor.