Tuesday, March 31st, 2009
The current financial crisis together with the housing slump means many people may find that their wills are out of date and need to be redrawn.
That’s the warning from the Law Society which says that provisions made in more prosperous times may no longer be appropriate.
One of the potential problems is that people who want to provide for someone by leaving them certain assets may find those assets have shrunk in value and are no longer sufficient to achieve the desired result.
The President of the Law Society, Paul Marsh, said: “Those wanting to leave friends and family in a secure position after they pass away might find that what they have left in their will has considerably less value than when their solicitor wrote it.
“With homes losing value people may need to look again at their wills, especially if they have included tax planning provisions which are no longer appropriate.
“The same goes for shares and other assets. The value of the assets in a person’s will might have fallen significantly since it was drafted and so the will may need to be rewritten.”
It’s also possible that the changing relative values of cash, property and shares mean that some beneficiaries may receive a greater proportion of your estate than you anticipated and some may receive less. It may be necessary to change the will to redress the balance.
Mr Marsh said: “It is essential that anyone with a will who has not looked to update it recently goes to their solicitor to review it and, if needs be, change it to reflect their current financial situation.
“A solicitor is best placed to advise on any necessary amendments, as well as provide guidance on tax planning. Reducing the tax burden on the assets you wish to leave in your will has an even more relevant benefit for your family and friends in the current economic climate.
“If you do not have a will, now would be a good time to write one or risk leaving friends, families or other intended recipients of your assets with nothing.”
Please contact Maria Turner if you would like more information about wills and probate matters.
© Copyright 2009 Burt Brill & Cardens Solicitors