My trust and do I have to register it?

The UK government recently released a consultation on the Trusts Registration Service, which identified a number of trusts that are likely to fall outside of the proposed rules: Jointly owned assets (such as a joint bank account or property), Bare trusts, Personal Injury Trusts, Vulnerable Beneficiary Trusts, Trusts for life assurance or retirement policies, and Registered pension schemes are all examples of statutory trusts. Because the consultation period is still open, this list has not been confirmed in the final rules.

Many people in the UK, wisely, put their assets into a trust for a variety of reasons, all of which are spelled out in the trust instrument and include:

• To keep track of and safeguard family assets
• When a person is too young to manage his or her own affairs
• To pass on assets while you’re still alive when someone can’t handle their affairs because they’re incapacitated
• To leave assets to your loved ones after you die (a ‘will trust’).
• In England and Wales, if someone dies without a will, the rules of inheritance apply.

The settlor decides how the trust’s assets should be used, which is usually laid out in a document called a “trust deed,” and in some cases, the settlor can benefit from the trust’s assets, which is known as a “settlor-interested” trust and comes with its own set of tax rules.

The legal owners of the assets held in a trust are the Trustees. Their job description is to:

• Handle the assets in accordance with the settlor’s wishes, as expressed in the trust deed or their will.
• Day-to-day management of the trust and payment of any taxes due
• Make a decision about how to invest or use the trust’s assets.

The trust can continue even if the Trustees change, but there must always be at least one Trustee. There could be multiple beneficiaries, such as a family or a defined group of people. They may benefit from the following:

• The income derived solely by a trust, such as from the rental of a trust-owned home.
• Only the capital, such as receiving shares held in a trust when they reach a certain age, as well as the trust’s income and capital

Different types of trust

The following are the main types of trust:

• Bare Trusts
  In a bare trust, the assets are held in the name of the Trustee. If the beneficiary is 18 or older (in England and Wales) or 16 or older (in Scotland), they have the right to all of the trust’s capital and income at any time (in Scotland). This means that the settlor’s assets will always be distributed to the intended beneficiary. Bare trusts are frequently used to pass assets to minors; the trustees look after the assets until the beneficiary reaches the age of majority. Example: You leave some money to your sister in your will. The funds are held in a trust account. Your sister is entitled to the money as well as any income it generates (such as interest). She has the right to take any of the money at any time.
• Interest in Possession Trusts
  These are trusts in which the trustee is required to distribute all trust income to the beneficiary as it becomes available (less any expenses). For instance, suppose you set up a trust for all of your stock holdings. The trust stipulates that if you die, the income from those shares will be distributed to your wife for the rest of her life. The shares will pass to your children when she dies. Your wife is the trust’s income beneficiary and also has a “interest in possession.” She does not have a legal claim to the shares.
• Discretionary Trusts
  The trustees can use these to make decisions about how to use the trust income and, in some cases, the capital. Trustees can make the following decisions based on the trust deed:
  • What is compensated? (income or capital)
  • Which beneficiary should payments be made to? How often should payments be made? Are there any conditions that should be imposed on the beneficiaries?
    Discretionary trusts are used to set aside assets for the following purposes:
    • A future need, such as a grandchild who may require more financial assistance in the future than other beneficiaries.
    • Beneficiaries who are unable or unwilling to manage their own finances entrust the trustees with the task of accumulating income and adding it to the trust’s capital. As with discretionary trusts, they may be able to distribute income.
• Accumulation Trusts
  The trustees can use this account to accumulate income and add it to the trust’s capital. As with discretionary trusts, they may be able to distribute income.
• Mixed Trusts
  These are a mixture of different types of trust. The tax rules that apply to each part of the trust are applied to the various parts of the trust.
• Settlor-interested Trusts
  These are where the settlor or their spouse or civil partner benefits from the trust. The trust could be:
  • An interest in possession trust
  • An accumulation trust
  • A discretionary trust
    Example: You can no longer work due to illness. You set up a discretionary trust to make sure you have money in the future. You’re the settlor – you may also benefit from the trust because the trustees can make payments to you.
• Non-resident Trusts

Which trusts need to register on the TRS?

• All UK express trusts where the trustees have incurred a tax liability in a given tax year; and
• All non-UK express trusts which receive UK source income or have UK assets on which the trustees have incurred a UK tax liability in a given tax year will need to register.

The term “express trust” refers to all trusts that have been purposefully created by a settlor (as opposed to statutory, resulting, or constructive trusts), and a UK tax liability includes income tax, capital gains tax, inheritance tax, and/or stamp duty land tax for these purposes.

Because the 41G form did not collect enough information to meet the new legislation’s requirements, trusts that registered with HMRC before the TRS’s launch will also need to use it to provide all of the information that is now required.

Registration on the TRS is not required if the trustees have not incurred a tax liability, either because they have claimed a relief or because the liability falls on the settlor or a beneficiary. This would include situations where income is mandated directly to a beneficiary with an interest in possession. Trusts with no other UK tax liability other than a tax liability of less than £100 on bank or building society interest income are also exempt.

If the trust is a bare trust, no registration is required, but trustees of bare trusts are still required to keep accurate and up-to-date written records of the beneficial owners, just like trustees of any other trust type.

When you must register a trust

You must register your trust with HM Revenue and Customs (HMRC) if it becomes liable for any of the following:

• Capital Gains Tax
• Income Tax
• Inheritance Tax
• Stamp Duty Land Tax (or Land and Buildings Transaction Tax in Scotland)
• Stamp Duty Reserve Tax

Trusts that hold property (by which we mean a house) will, like other trusts, only need to be registered if the trustees incur a liability to tax. Thus, if the property is occupied by a beneficiary – and is not income-producing – no requirement for registration will exist unless a taxable event occurs for IHT, CGT or SDLT purposes.

You do not need to register your trust if:

• it has to pay Income Tax of less than £100 on interest
• only the settlor or beneficiary of the trust has to pay tax
• it’s a bare trust
• it’s a charitable trust
• it’s a resulting trust and the assets go back to the settlor because all the beneficiaries have died
• it’s a statutory trust created through legislation
• it’s a constructive trust imposed by a court
• it holds a pension scheme already registered with HMRC

You also do not need to register your trust if you have to file information:

• under the Foreign Account Tax Compliance Act (FATCA)
• for Common Reporting Standard (CRS) purposes

The above information is for guidance only; for more information get in touch.

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Issues with not using ‘Legal Talk’ in your Will

The issues with Fedor and Mable’s Wills are numerous; Mable may be in a nursing home when Fedor passes away; she may pass away a few months later without making a new Will, causing her provisions to be nullified. Fedor and Mable’s property now requires a new home (refer to the Intestacy Rules… are your eyes glazing over yet?) As a result, all of the close relatives, including people neither of the deceased had time for, will almost certainly get a bit of attention. Alternatively, the testators (the people who wrote the Wills) may have foreseen that if one of them predeceases the other, everything goes to their issue (simply put, children – possibly); however, the kids may have predeceased them. It’s all over again. Alternatively, the children or one of them could be going through a divorce (it’s the old spouse thing… I’ll take some of that), or the children or one of them could have a drug or alcohol problem, or lack the capacity to manage her or his own affairs. The list is extensive, and some of the items are of vexing interest to many.

How can this be fixed?

Returning to the term “issue,” if we substitute “children,” for example, “Should Mable have predeceased me or not have survived me by thirty days, then I give my entire estate in equal shares to my two sons in equal shares absolutely (by which we mean unconditionally), or if either of them has predeceased me, then to his issue in equal shares.” Is that it? No. To begin with, if the testator’s estate exceeds his or her inheritance tax nil-rate band, he or she may be giving HM Revenue and Customs 40% of everything that goes to his sons or issue. (Lesson: try to ‘equalise’ your estates so that none of them are significantly over the Nil Rate Band.) The term “issue” refers to offspring (in the context of the law, which is what we’re discussing). Because a person’s issue includes his children, grandchildren, and other lineal descendants, the estate could not be distributed until the end of the line, which would result in approximately 20,000 people receiving approximately 4p each. Your Will consultant may recommend limiting the term “issue” to “… such of his issue as are living at my death” – which, by the way, includes foetuses.

So why do we use legalese to muddle the waters?

It’s as simple as this: every legal document contains a slew of provisions that are only ever invoked if everything goes wrong; lawyers thrive on uncertainty, which allows them to squabble over commas and semi-colons, among other things, and will do so if it means more money in their office account. The provisions you tell the Will Writer you want in your Will are the ones you need to be certain of; they make up about ten percent of the entire document. NB Will Writers are the best people to talk to about other important services like durable powers of attorney and inter-vivos (living) and testamentary Trusts (set up on death).

And, perhaps the most perplexing but crucial clause in your Will is the one that gives your appointed Trustees the authority to change a beneficiary’s interest in your estate, e.g., apply but not reduce his inheritance for his benefit rather than simply deposit a large sum of money in his bank account. Reason? Many a slip between the cup and the lip’ (Moir’s “Mansie Waugh” and Barham’s 1840 “The Ingoldsby Legends: Lady Rohesia”). For example, between the time of drafting a Will and the time of death, an intended beneficiary may succumb to various temptations or issues beyond his control, so his interest will be used for his benefit, i.e. on a need rather than a want basis. Removes the gold-diggers, divorced spouses, and other undesirables.

However, you may have realised that using plain language when drafting these documents can be difficult if one does not want to offend or leave too much room for interpretation, enriching lawyers and causing squabbles among beneficiaries.

The post Why Wills Are Written In ‘Legal Speak’ appeared first on Crystal Clear Estate Planning.

These are all common-sense considerations.

A Guardian is a person who is legally responsible for the care and control of an incompetent or minor’s person or property. A person who is legally classed as incompetent is defined as a person of any age who is unable to handle his or her own affairs. When we appoint Guardians in Wills, for example; we are often referring to children whose parents have died, or whose parents have abandoned their children under the age of 18 (a minor), or who are of any age but unable to manage their own affairs. This is referred to as “disadvantage.”

If one parent dies, the other retains parental responsibilities unless the other is deemed a “unfit parent.” When creating Wills, we usually include the following paragraph on the appointment of Guardians.

‘Should my husband/wife predecease me then I appoint ………………………….. (and ……………………….. to be the Guardian/s of my daughter/son …………………………… should she/he be a minor or otherwise disadvantaged at the time of my death.’

Guardianship usually ends when a kid reaches majority; but, with a disadvantaged person/child, it may continue for many years until the person dies, becomes “competent,” or enters residential care. Some people, regardless of age, are unable to care for themselves to the point where they require full-time care in a facility. Any significant illnesses will almost always be obvious to the parents, and the appointment of Guardians will be superfluous because present or future care will have been planned, usually through social services. Guardian appointees, on the other hand, can deal with minor difficulties. The Guardians will be in charge of parenting.

What is Testamentary Guardianship?

Testamentary Guardianship is the process through which someone appoints a Guardian for a child in the case of their death. A close relative, such as a grandparent or brother, could be the Guardian. Once this is in place, the Guardian will have parental-like responsibilities and duties toward the child. S. 5 of the Children Act 1989 governs the process of appointing a testamentary Guardian and the rights that are awarded.

Who can appoint a Testamentary Guardian?

• A parent who has Parental Responsibility for the child
• A Guardian for the child
• A special Guardian for the child

This means that an unmarried father without Parental Responsibility for the child cannot appoint a Guardian unless and until he gets Parental Responsibility for the child.

How is a Testamentary Guardian appointed?

A testamentary Guardian can be appointed:

• in a Will, or
• in writing, dated and signed by the person making the appointment.

There is no requirement to use a particular form of words. A statement such as ‘In accordance with section 5 of the Children Act 1989 I appoint (X) to be the Guardian of my child (Y)’ would suffice.

When does Testamentary Guardianship take effect?

On the death of the testator, a person appointed as a testamentary Guardian will obtain Parental Responsibility for the child concerned when either of the following conditions is met:

• the child has no surviving parent with Parental Responsibility for him; or
• a Child Arrangements order or Residence Order was in force which named the testator as the person with whom the child was to live.

Parental Responsibility will not immediately pass to the Guardian if a surviving parent has Parental Responsibility for the child and there is no order for residence. When a special Guardian appoints a testamentary Guardian, the rules are slightly different.

The testamentary Guardian appointment will take effect if the testator was the child’s sole (or last living) special Guardian. Even if a parent with Parental Responsibility is still alive, this rule applies.

The testamentary Guardian appointment will not take effect if another special Guardian is still alive. The law of special guardianship is difficult.

What are the rights and responsibilities of a Testamentary Guardian?

When a testamentary Guardian is appointed, the kid is given ‘Parental Responsibility.’ This is a legal term that gives the kid the right to participate in critical decisions impacting the child’s long-term care and upbringing. This procedure does not guarantee that the child will be allowed to live with the testamentary Guardian. To be legally recognised as the person with whom the child resides, you must apply to the court for a Child Arrangements Order or a Special Guardianship Order. That isn’t to suggest that the child can’t reside with the Guardian if there isn’t a court order in place. If there is a disagreement over where the child should live, a court order will be required.

In s.3(1) of the Children Act 1989, parental responsibility is described as “all the rights, obligations, powers, responsibilities, and authority which a parent of a child has by law in respect to the kid and his property.” The term “parental duty” is meant to emphasise a parent’s responsibilities to their child rather than their rights over their child.

How can unmarried fathers obtain parental responsibility?

An unmarried father can obtain parental responsibility by:

• marrying the mother;
• having his name registered or re-registered on the birth certificate if his name is not already registered;
• making a parental responsibility agreement with the mother;
• obtaining a parental responsibility order from the court;
• obtaining a residence order from the court; or
• becoming the child’s Guardian on the mother’s death.

What does the change in the law mean to me?

This will depend on the individual’s situation.

The law has changed so that unmarried fathers who registered or re-registered their name on their child’s birth certificate after 1st December 2003 will have parental responsibility for their child.

Therefore:
If an unmarried father has a child after 1st December 2003 and he is registered on the birth certificate he will have parental responsibility.

• If a child was registered before 1st December 2003 and the father was not named on the birth certificate, the child can be re-registered to include the father’s name. Once this has been done, the father will have parental responsibility.
• If an unmarried father’s name is already on the birth certificate and the child was registered before 1st December 2003, the law has not changed this situation so the father will not have parental responsibility. (Unless obtained by other means.)

GUARDIAN APPOINTMENTS. NB Where the parents are separated / divorced or just not living together; the father (but not where not married to the mother – and not on the birth cert) has first right to be first Guardian; amend/choose the appropriate paragraph.

For an unmarried mother/divorcee/etc:

Should at the time of my death the natural father/s of my children S………….. and D………….. and A……………… have predeceased me then I appoint L……………… C…………… of (address) to be the Guardian of such of my children as may be minors or otherwise disadvantaged at the time of my death provided always that should the natural father/s have appointed Guardians by any will then I wish that my appointees shall act jointly with those appointed by their (respective) father / s.

For a married couple:

Should my wife / husband have predeceased me then I appoint A…………… H…………….. (and ………. H………………. both) of 4………………… Street M…….. Sydney NSW (or the survivor of them) to be the Guardian/s of such of my children as may be minors or otherwise disadvantaged at the time of my death and i declare that should such appointments/should such an appointment be effected then I wish that (they or the survivor of them) he/she shall also act as Trustee/s of such of my estate as shall be held in trust for my children (as hereinafter set out).

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Divorce is also simple…. may be initiated by one of two parties, and can be far more expensive, typically for just one of the partners, whether petitioner or responder. If you bet on every marriage ending in divorce, you’d be unlikely to lose your money since, throughout the last few decades, the divorce rate has been consistent at one-third of all marriages.

What the parties probably do not realise is that there are some aspects of divorce that do not occur to people involved at the time. Divorce is mentally draining for both parties; it is costly for the more affluent of the two partners; the former matrimonial home (FMH) may have to be sold, leaving both parties without the means to purchase a new property; the children may love Fred and Mabel equally, but clearly cannot live with both, so must compromise and may be of an age when they do not fully comprehend

Divorce should never be taken lightly

We would not suggest that (all) divorces are taken lightly, and in some cases, one might wonder why the parties have stayed together for so long, and indeed, some terrible things do happen behind the closed doors of the MH, and doubtless to your great relief, or otherwise, we do not intend here to satisfy any prurient interests you may have in learning from this experienced, former family lawyer. Some are intriguing, some are not, but they are all disturbing, especially when small children are involved. For the sake of this exercise, we will focus on how divorce affects divorcées dealing with their assets after death.

This will vary considerably depending on what the parties do after the divorce. Let’s start with the FMH. If Fred has recently moved out of the house he shares with Mabel because he has graciously consented to allow her to stay there with their blood-issue, i.e., their children, while Fred moves in with his parents or his new partner (of which more later). Mabel prepares a new will after saying good-by to Fred, excluding Fred and giving her whole wealth to the children. For example, ‘… my whole estate to my children in equal portions…’ with certain restrictions, of course.

This is where the issues arise. If Fred and Mabel own the FMH as joint tenants, then regardless of what one’s will states regarding the property, on the death of the first – say, Mabel – Fred will take the entire house. This might imply that Mabel’s portion – and potentially Fred’s half of the FMH as well – will pass to Fred’s new spouse and step-children, with Fred and Mabel’s children receiving everything their mother owned save the home. Which might be very little in fact.

Example of a Divorce

If Fred and Mabel divorced without a formal legal procedure and Mabel did not create a new will, her previous will stays valid if she did not remarry; remarriage nullifies any existing will. Mabel may have given her whole assets to Fred in her will. Then, if Fred had predeceased her, to their children. But if Fred survived her, he would now own his wife’s estate in its entirety, and it is then possible that Fred’s new partner, Belinda, might decide it was about time that she and Fred got married, but if Fred does not then make a new will then on his death his wife would only get up to £270,000 of Fred’s estate (plus a few other little bits) but if he doesn’t marry his Belinda, she will get zilch but his children will take all. If Fred makes a new will, whether married to Belinda or not, giving his whole wealth to her… on the ‘understanding’ that on her death she will ‘look after Fred’s children’… which means nothing, it is very likely that Fred’s children will get nothing.

Children of any spouse are not high on a new partner’s priority list, thus even if Belinda made provision in her will in this situation, she may amend her will after Fred dies, implying that Belinda now owns both Mabel and Fred’s estates. She will subsequently be able to pass it on to her (Belinda’s) children. Nothing for Fred and Mabel’s children. Isn’t it agonising?

We’ve now entered step-child territory, which is a minefield. Disinherited children, maybe into joint wills (which are typically not a good idea)… When step-mothers and step-children enter the picture, things become quite complicated. Look up the case of that well-known and loved US radio presenter Casey Kasem. He had a lot of cash. And his new wife and his own children had a lot of problems.

Bottom line; keep your eye on the ball after divorce and re-marriage or new relationships. Make some serious estate plans!

Some statistics about Divorce

About half of petitions cite unreasonable behaviour; only 11% cite adultery. After 50 years of marriage, 32% divorce; After 40 years of marriage, 40% divorce After 30 years of marriage, 44% divorce After 20 years of marriage, 37% divorce After 10 years of marriage, 20% divorce

And … I have stood in Sainsburys queues for longer than some of my clients’ have been married.

Do not keep telling people that you are going to take your husband to the cleaners.

Try and agree any financial settlements; if you fib about your assets on the divorce papers you could be prosecuted.

Very few divorces can be successfully defended.

I have known some financial arrangements to take over five years to settle and in most cases they were then agreed between the parties concerned.

Filling in the divorce papers is easy; don’t pay lawyers to do them for you.

If you meet a new partner who has already been divorced twice or more, move on.

If he tells you he’s going to change, he won’t.

An act of adultery can last for minutes; the pain afterwards for you and your family can last a lifetime.

Little wonder lawyers are rich. However, the number of divorces is declining but so is the number of marriages but this does not mean that you don’t have to look after your estate to make sure that your children are provided for and that any new partners and their children are not going to prosper and live well on your money!

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Unmarried heterosexual/same sex couples who are not civil partners lose out on a tax break available to married or civilly partnered individuals can apply for The IOU Discretionary Will Trust. When a couple dies, they usually leave their estate to each other. When the second one dies, the taxman takes a 40% cut of anything above £325,000 (or £500,000 if home owners (tax year 2020/21) are in the Residence Nil-Rate Band).

However, by include a Discretionary Will Trust in both couples’ Wills, they may be able to leave on up to double that amount to their respective families, £650,000 (or £1,000,000 with the RNRB allowance), avoiding Inheritance Tax. The agreement also allows the surviving partner to inherit a portion of the estate of the first to pass away.

What is the mechanism of the Trust?

By incorporating language for an IOU Discretionary Will Trust in each partner’s Will, the estate, up to the nil rate band of the first person to die, will transfer to the trust, with any remainder (usually) passing to the surviving partner. NB; Although it is encouraged, it is not required to establish the trust in the Will; instead, the Trustees might utilise the deed of variation to do so after the first death.

Using the family home for such an arrangement. It may be necessary for the house to be owned solely by one of the couple or under a tenancy in common arrangement, which allows them both to give a fixed proportion of the house to whoever they desire in their Wills. If the surviving spouse intends to live in the property after the first partner has died, there are still issues to be resolved, failing which the trust’s whole Inheritance Tax effectiveness may be jeopardised. A remedy is to add unique powers for the Trustees in the Will Trust language, such as the ability to take a legal charge over assets that transfer to the survivor on the first death – or to receive a “IOU” from the survivor as an asset of the trust. With the use of an IOU, the estate of the first person to die, as well as their half of the house, may be given entirely to their surviving partner, with the trust consisting just of the IOU supplied by the survivor.

The trustees would redeem their charge or IOU on the second death, and this would be financed from the survivor’s estate before inheritance tax was calculated.

A Case History

Paul and Emma have no intention of getting married. They have a joint property worth £450,000 with no mortgage and various joint accounts giving a total estate value of £650,000. In their Wills, they have left everything to each other and then their three children. Paul dies first and as his share of the estate is below the Nil Rate Band, there is no tax to pay on his death. However, their children will miss out when Emma dies as the estate will be liable for Inheritance Tax of £130,000.

The Solution? They should re-draft their Wills to include a NRBDT which will protect the NRB of whoever dies first. They should also change the way their property is owned so that they are tenants-in-common and ensure that equal portions of the estate are held in their own names. On Paul’s death the NRBDT is established. So that Emma doesn’t lose use of any of the estate/assets, she issues an IOU to the Trustees to the value of Paul’s NRB. This loan is then recalled to the trust by the Trustees on Emma’s subsequent death which can then be used for the benefit of, or loaned to, their children.

Tax on Emma’s death – Without the NRBDWT

Inheritance Tax on Paul’s death: £0

Inheritance Tax on Emma’s death: Gross Estate £650,000 minus the tax-free allowance of £325,000.

Net Estate for calculation of IHT £325,000 Inheritance Tax @ 40% £130,000.

Children’s Inheritance = The Estate £650,000 minus Inheritance Tax – £130,000.

Total Children’s Inheritance £520,000.

Tax on Emma’s death – With the NRBDWT

Inheritance Tax on Paul’s death: £0

Inheritance Tax on Emma’s death: Gross Estate £650,000 Minus loan due back to Trust = £325,000 minus the tax-free allowance – £325,000.

Net Estate for calculation of IHT £0. Inheritance Tax @ 40% £0.

Children’s Inheritance = The Estate £325,000 Minus Inheritance Tax of £0. Plus the funds in the NRBDT of £325,000.

Total Children’s Inheritance £650,000.

NB 1: keep it simple; deal with individuals whose respective estates are at or below the NRB. With substantial estates, inter-vivos dispositions may be required.

NB 2: remember that substantial IHT estates cannot be satisfactorily dealt with via Wills, so may need inter-vivos dispositions.

As always, take proper advice from a tax professional.

For Guidance refer HMLR Practice guide 70: nil-rate band discretionary trusts.

Contents: it covers about six pages and discusses: HMLR Practice Guide 70 can be found here.

1. Overview.
2. How the trust works.
3. Implications for HM Land registry.
4. Appropriate applications following creation of a NRBDT.
5. Background; property law and registration issues.
6. Termination the trust during the surviving partner’s lifetime.
7. Other issues.

Please note that HM Land Registry’s practice guides are aimed primarily at solicitors and other conveyancers. So the language may involve complex matters and use legal terms.

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What is a FLIT?

It is a type of Will written in such a way that it can provide for a surviving partner but also has the flexibility for the Trustees to distribute assets to other beneficiaries should the surviving partner not need all the deceased’s estate. The Trustees control the trust fund so they can advance (pay) to the surviving partner any fund capital or interest the fund capital might be earning if invested or capital and interest. The deceased’s Will may stipulate which.

The trust which will hold the deceased’s assets is created on the death of the first to die, and for inheritance tax (IHT) purposes it is treated as an outright gift to the survivor, so, as an ‘exempt transfer’ (provided the parties are married) does not attract IHT however much goes into that trust, provided the deceased’s nil-rate band (NRB) has been preserved. Note: if he or she had given away assets in his Will or within seven years of the death, then the full NRB may not apply.

On the death of the surviving partner, any assets he/she received from his/her partner will pass on in accordance with the first decedent’s Will, for example, either as absolute gifts or into a discretionary trust for the e.g., children or/and grandchildren.

As the first trust funds do not belong to the survivor, he/she cannot give them away to a new partner or just spend them or otherwise dispose of them even by his/her own Will, nor can the inherited wealth be taken into account when assessing liability to pay for care.

The Trustees’ powers as set out in the original Will should ideally include the power to advance capital and interest as above. If lent to the survivor, then he/she will pay it back on her/his death via the Will, so reducing her liability to IHT. The Trustees can also pay interest/capital to the other Beneficiaries, i.e., kids/grandkids as per the initial Will.

If the Trustees made payments out of the trust, then they are deemed to be made by the surviving partner, so will be regarded as a ‘potentially exempt transfer’ so not liable to IHT if he/she survived for seven years after that payment out was made; the tax payable starts to reduce after three years by eight percent per year after three years. She/he will of course have two nil-rate bands, subject as above.

However, the life-interest in the trust fund must have existed for at least two years after the first death otherwise any gifts will be ‘read back’ into the Will of the first to die, under s 144{1] of the Inheritance Tax Act of 1984 which means a liability to pay IHT might attach to the first to die’s estate.

When the first of a couple dies (let’s say Mr Vespa) his estate is held in trust for his wife Mabel for her lifetime and when that lifetime interest ends on the death of Mabel, the trust fund is automatically diverted to a discretionary trust in favour of the surviving Beneficiaries, usually children and grandchildren and as nominated in Mr Vespa’s Will.

The Trustees of the original trust, say in this case Mr Vespa’s two sons, do have some powers over that trust. They can pay trust income and trust capital to Mabel, either as a loan or as an absolute gift. An absolute gift is not a good idea as Mabel could give that sum away to benefit somebody e.g., a non-family member

So, what are the advantages?

A FLIT in favour of Mabel Vespa will use Harry Vespa’s NRB for IHT purposes, as it is treated as an outright gift to Mabel (an exempt transfer) so on Mabel’s death she will have Harry’s and her NRB, i.e., £650,000 (assuming neither had made any PETs within seven years of their deaths).

There are no anniversary or exit charges to pay, so Mabel’s Trustees (e.g., their children, David and Richard) can make lifetime gifts in order to mitigate any IHT liabilities. The FLIT also ensures that the trust fund is preserved to a greater or lesser extent for David and Richard and for their own children as well, as per, e.g., the original Will.

And, if Mabel were to get into financial trouble, creditors cannot attach the trust fund because Mabel’s interest is only a life interest – much the same as Mabel’s interest in Harry’s share of the matrimonial home under a PPT. Nor can it go to a new spouse or to her step-kids.

David and Richard are similarly protected on the death of their mother, because in that event the trust turns into a discretionary trust. And the Trustees have the power to convert the trust into any other kind of trust, so hopefully keeping the fund away from the Revenue (IHT) and in case David or Richard were already in the IHT bracket, the Trustees can ‘lend’ them some money rather than making any absolute gifts. Or they can just benefit the grandchildren.

Disadvantages?

1. Because the trust assets are treated as belonging to the life-tenant (Mabel) anything over Harry and Mabel’s combined NRB will attract the 40% IHT charge on anything over that value on Mabel’s death.

2. It is possible that the Trustees pass the whole of the trust fund to Mabel, so on her death, there is nothing left for David or Richard.

3. If the trust were dismantled during Mabel’s lifetime, it would be regarded as a PET so unless Mabel lasted another seven years, there would be IHT provided always that her estate then exceeded her available nil-rate band for IHT purposes.

That said, a FLIT is a very good idea for couples whose estates do not exceed the combined NRB, and is better than a straight life-interest, where the Trustees have no power to pay out to the nominated Beneficiaries, in this case the children David and Richard and the grandchildren.

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About 60% of adults in the UK have not made wills, which means that their estates will be dealt with under the rules of intestacy; ergo, they may benefit people they do not want to benefit, such as a divorcing daughter or son in law, an estranged spouse, children and / or grandchildren who for various reasons cannot be trusted with money. The list is pretty formidable. And if you are in the inheritance tax (IHT) bracket, it is possible that you will benefit the chancellor of the exchequer, or you will anyway if you do not take steps while you are still alive and which may ensure that you do not pay the tax subject always to the various tax laws coming into effect between when you do your will and lose capacity to do another one to take into account the changes.

The problem is that we in the UK are pretty reluctant to talk about money matters, and in particular, what we want to happen to our estates on death, perhaps even less so when, as a parent, discussing how your children can dispose of their estates. According to Katherine Denham, of Times Money, a parent will pass, on average, £124,000 to a child, and depending on how the children receive that money could mean the recipient paying tax on it. The same may apply where a grandparent passes legacies to grandchildren, which is sometimes a preferred option to leaving it to children who may be well settled financially, and which might cause the recipients to slip into the IHT bracket when they might have already undertaken some tax planning.

With your own issue, say one who is long-term or even recently married, passing him or her a substantial sum of money as an absolute gift means that sum or asset will be included in divorce proceedings, and it has been known for a child who has inherited a very substantial sum of money or even a modest realty portfolio, for it to lead to what one can call ‘an inheritance-driven divorce’ where a disgruntled spouse wants a share, like half, of her / his spouse’s newly acquired wealth. And there are very few successfully defended divorces in the UK, and the starting point for a share of assets starts at half.

Howsoever you regard your children’s marriage (or marriages!) it would be wise to ensure that only your children and grandchildren benefit from your estate, and this can be effected by means of a simple trust, with your issue and their issue (your grandchildren) being discretionary beneficiaries. Of course the spouse can benefit as well, with a trust beneficiary passing to his / her spouse anything your children may be given by the trustees, but the spouse cannot benefit as of right unless added as a beneficiary in the trust document.

The same principle applies where children or grandchildren have issues such as substance or alcohol dependency, are just profligate, are gamblers or are serial divorcees. Serial divorcees? We often encounter clients who have clocked-up three or more divorces, but understandably, we cannot criticise or comment as we have not ‘walked a mile in their shoes’.

In simple terms, ’all to the spouse, then to the kids’ is, in reality, a most unsatisfactory way to deal with one’s estate unless certain caveats are built into the will document. The same points may well apply where a child is thinking about a will. He could of course leave it all to his parents and/or to his siblings with a clause written in to take account of the fact that he may have a spouse and children at the time of his death, even though he may not be so ‘burdened’ at the time of writing his will. Even if he does have a spouse at the material time, and with or without issue, it may not be the brightest idea to leave it to her / him ‘absolutely’ and for a number of reasons which even an idiot in a hurry can imagine, and there are plenty.

Yes, it may not be easy to appreciate all the above, but this is where experienced will-writers have seen, very many times, the awful mess some testators leave for their families because they do not appreciate that they do not live in a perfect world, and that not all relationships, and we mean all relationships, are made in heaven, and many people who appear prima facie to be intelligent adults will, through carelessness or stupidity, engineer for themselves some situations it is hard to understand, and who should not be allowed to leave home without a carer. It may be then, that you have to make sure your estate is best looked after for them by those people you really know and trust.

Consider; a free will or a standard WH Smiths will form or a £19.99 will is very unlikely to address all your particular concerns, some of which you may only be aware of if you are alerted to them, so an hour-long chat with an experienced will-writer, or reading a book on the subject of estate planning is very probably the best thing to do if you really intend to benefit only those whom you want to benefit, and with none of your estate filtering down to people you never knew existed or whom you know exist but who would never in a thousand years send you a Christmas card.

Finally, list all your assets – accounts, property, savings, pensions, car details, expensive items, utility suppliers, mortgage information and broadband provider.

Write a will and review it at least every five years or when there is a substantial change in your circumstances like having children / grandchildren or getting divorced or separated from spouse.

Make a note of all your digital assets and media accounts, club subscriptions, online-shopping accounts.

Decide on your funeral details; to cremate or to bury; woodland burial; scattering of ashes; religious service or no service; do you want a pre-paid funeral plan?

Look up information on bereavement e.g., eoi-doula.uk.

Organise all your paperwork so it can be easily accessed and kept in one place, such as a cardboard box, or look at onceivegone.com.

(The above courtesy of Laura Shannon MoS 17/1/21)

The post Why Estate Planning is so important appeared first on Crystal Clear Estate Planning.

In many of the Wills drafted in the UK, grandparents prefer to benefit their grandchildren rather than their children.

This is not by any means a bad thing. However, how many new grandparents are actually aware that for about £10.00 per week they can build up a very substantial sum for their grandchildren’s pension?

For example, paying into their pension pot for just the first 18 years of the grandchild’s life will build up to a £100,000 pension pot, because all pension contributions are topped-up by the taxman! For every £40.00 paid by grandma and grandad, the Revenue top it up by £10.00! If the contributions were topped up to £60 pw, actually that’s quite a lot, then the little darlings could, according to Brewin Dolphin, be pension-pot millionaires by the time they were 43, but they would not be able to access the ‘pot’ until they are 57.

There’s always a fly in the ointment! When the writer bought his new MGBGT in 1970 (primrose yellow, wire wheels, overdrive on 3rd and 4th gears) it cost £1520.00; when my parents bought their first house in 1957 they paid £3,500 and it has just sold for £400,000. So a million pounds might just buy a house in fifty years’ time!

Accountants Saffery Champness say a grandparent can also pay into a grandchild’s Junior ISA, but it must be opened by a parent or guardian. Current JISA rules (2020) allow £9,000 p.a. to be put into the tax-free account, with proceeds able to be withdrawn from age 18.

Grandparents can also buy Premium Bonds for grandchildren aged under 19, up to a maximum of £50,000.

So, there are better ways to benefit grandchildren without having to pass cash through the parents’ estate, but it can be a bit of a maze in working out what is best. But the lesson here is simple that you can do quite a lot for grandkids without having to die first!

NB1: Most children have two sets of grandparents. Share the load!

NB2: State pension payments worth billions are being sacrificed because people do not know they may be entitled to claim.

NB3: Anyone who takes time off work to look after a child under 12 can be entitled to state pension credits.

NB4: Jasmine Birtles of Money Magpie says that just putting a little aside every month such as into an ISA can make all the difference when you retire.

NB5: State pension credits are awarded to anyone who accompanies their spouse who works in the Armed Forces and is posted overseas.

Crystal Clear Estate Planning can help in regards to setting up pensions for your Grandchildren, as well as Estate Planning and Will Writing. Get in contact today to see how we can help.

THINK WISE – THINK PENSIONS!

The post Setting up a Pension for the Grandchildren appeared first on Crystal Clear Estate Planning.

‘Sharing details of your digital legacy is as important as making a will’
– Marc Shoffman (Times Money, May 2019)

‘Digital assets’ mean assets stored in a digital or online form, e.g., information stored digitally. Such as tablets, mobile phones and other devices, email accounts, social media profiles, online storage resources (Dropbox, the Cloud), financial assets such in PayPal, eBay and online bank accounts.

Techopedia define a digital asset as ‘any text or media that is formatted into a binary source and includes the right to use it; digital files that do not include this right are not considered digital assets. Digital assets are categorized into images and multimedia, called media assets, and textual content’.

These digital assets continue to exist as technology progresses regardless of the device where the digital asset is stored or created. Distinguishing and defining the various types of digital assets can help in digital asset management. As conventional broadcast, print and graphic assets are gradually transformed into an advanced digital form, digital assets are becoming increasingly important. And in turn are leading to growth in the digital asset management industry. Big corporations like Oracle, Microsoft, Apple and many others are consistently growing their enterprise to provide third-party digital asset management through Web-based repositories.

Your Online Accounts are your Digital Assets

Have you ever thought about how many online accounts you have? Do you listen to music on Spotify? Have you uploaded your family history and photographs? Do you bank online or via an app? You might have made a Will, but you will need to safeguard your digital legacy.

How do I do that? It really boils down to making sure that your family can access your various apps and accounts by using your passwords. But it may not be easy to keep a store of all your passwords, and even if you did, would you keep that list updated? And where would you keep that list? Would you make life easy for yourself and use one password for everything? (not a brilliant idea!). A really ‘obscure’ single password such as %66&9&8(+=t$nyD”1!>lk@#n7~9 is a very bad idea; imagine trying to remember it!

It is both annoying and time consuming to have to dig out different passwords when dealing with e.g., BT, electricity and gas accounts, Ring, bank and building society accounts, e-mail accounts … the list is endless. So you could use password managers, like Dashlane, LastPass or Sticky Password. Or you could make a social media Will. The Digital Legacy Association (DLA) says technology companies should introduce end-of-life policies. Allowing users to say what they want to happen to their ‘online-presence’ and create a social media Will that sets out their various accounts, user-names and who they want to manage them.

Reference your Assets in your Will

On this last point, it makes sense if every Will includes reference to digital assets. So granting authority to a deceased’s personal representatives to deal with digital assets. This is especially important where there may be intellectual property stored on a PC. For example, authors may have stored their manuscripts on their PCs. Where each manuscript could comprise anything from 80,000 to over 100,000 words; say 200 to 250 pages of writing, it could comprise a substantial asset in anybody’s estate, and unfinished works could be completed by family or at their direction and in some cases be worth millions of pounds.

Further, it might be easy to access say, the deceased’s ‘book folder’ but each work in that folder might have it’s own password. How frustrating then when the two simple words ‘access denied’ means kissing goodbye to what could be a more comfortable life for the deceased’s grand or great-grandchildren. Or to the widow or widower.

Or you could exercise a phenomenal level common-sense, brilliance and organisational ability and carefully record and update the twenty, thirty or more passwords … and keep it pinned to the cooker-hood with a fridge magnet.

More from Parkinson’s

It is essential for the modern draftsman to consider digital assets when preparing a Will and will only become even more so as time progresses. And more of the digital generation start thinking about making a Will. A failure to consider digital assets and the effect of Will provisions on such assets will not only cause great trouble for the testator’s family and loved ones but may also leave the draftsman vulnerable to a negligence claim.

The financial value of some digital assets could be high. The most valuable domain names are sold for millions of pounds while balances in PayPal accounts, gambling accounts, eBay accounts, and other similar accounts may also be valuable. Similarly if the testator is a photographer, writer, graphic designer or equivalent their online content may constitute a very significant proportion of their net estate.

If no thought is given to digital assets there is a real danger of significant financial loss occurring. Due to the executors being either unaware of or unable to realise assets in online accounts, in digital content or stored in an electronic form. There is also potential for significant emotional distress to family and friends of the testator due to them being unable to close social media profiles; which could result in the additional risk of the deceased’s identity being stolen and used for criminal purposes.

There is a dearth of rules and formal guidance as to the treatment of digital assets because the area develops so quickly that legal rules have not had sufficient time to catch up. And the international nature of digital assets makes them uniquely difficult to legislate and provide for. Such situations can cause significant problems for the draftsman when attempting to provide his client with the best possible service.

Take not of the Terms and Conditions

When drafting provisions concerning digital assets it is vital to take note of any terms and conditions; or terms of service relating to a digital asset as they may affect how it can be used after death. For example, the majority of email accounts are only licensed to the user; meaning that after they die the email address and all its contents revert back to the provider. Similarly, despite what many members of the public believe, when a person buys music on iTunes they only purchase a licence. Which allows them to listen to the music and not the music itself. Meaning the songs in a person’s library cannot be passed on to the next generation, regardless of any provision in the Will.

Furthermore, many social media sites and other digital accounts contain rules prohibiting a person from logging into another person’s account. Which can affect the way certain digital assets can be passed on and prevent a beneficiary from inheriting an account even if they have the testator’s username and password. The terms of service may also set down the consequences of the death of an account holder and the procedure to be followed by any personal representatives.

There are some practical problems concerning digital assets:

1 Identification.

Unlike a house or a large chattel the executors and descendants of the testator are not certain to just discover the existence of a digital asset. There is no physical item to spot and unless the testator has brought the existence of the asset to somebody’s attention there is a real risk it will remain unnoticed and unrealised.

2 Realisation.

Even if the executors are aware of the existence of the assets, the absence of usernames, passwords, pin codes and logins can exclude the executors from being able to fulfil the testator’s wishes. Even a temporary delay can effectively destroy the assets. E.g., most email accounts are deleted forever if they are not used for a few months; betting accounts and online bank accounts if not used for a certain period may be closed and the proceeds in the account disposed of. Domain names with .uk endings will terminate unless the personal representative has transferred them to another person; this must be done within one year after the death of the holder or at the end of their appointment. Therefore, even if the personal representative is eventually able to gain access to the account it may be fruitless if too much time has passed.

3 Jurisdiction.

The majority of digital assets are international in nature. The rights and powers of the executors may depend on what sort of digital asset it is and where the company behind the asset is legally based. For example, PayPal is registered in Luxembourg, while Yahoo in based in the USA. If valuable digital assets were based in USA it would be inappropriate to restrict the UK Will to only UK assets. This is something the draftsman must consider carefully when drafting any jurisdictional provisions in the Will.

Caveat:

The digital world evolves rapidly and the type, form and content of digital assets can change dramatically over the space of a short period of time. For this reason, great care must be taken when providing for assets of a digital nature. Therefore gifts of digital assets in a Will should be reviewed regularly. However, despite the difficulties inherent in providing for legacies of a digital nature it is far more detrimental to the client to fail to consider or provide for such assets at all.

Crystal Clear Estate Planning can insure your digital assets are left to your loved ones and are not forgotten. Contact us today to speak to an expert with over 30 years experience dealing with Wills and Estate Planning.

The post What are Digital Assets? appeared first on Crystal Clear Estate Planning.

The Law Commission for England and Wales wants unmarried partners to be able to inherit each other’s wealth, even if they haven’t written a Will, but there is a fundamental difference between people who are married and not married. You might want to leave it to your parents, other members of the family, or friends especially where there is no issue of the union.

Living together

Cohabitees such as Liz Stovell, who lives in Hampshire.

She lost her partner, Dave, three years ago from a heart attack. They were not married, and neither of them had written a will.

Had she been married, she would have been entitled to at least £270,000 from Dave’s estate.

As it is, Dave’s children from a previous marriage are the ones who are legally entitled to inherit his money. To reclaim some of that, Liz has had to go to court.

“It came as a big shock”, she said. “I didn’t realise that people living together just don’t have the same rights as a married couple.”

The proposals

The Law Commission now wants to change the law in England and Wales, to help people like Ms Stovell. The law in Scotland may also be liberalised, but to a lesser extent.

The Commission points out that there are now more than two million cohabiting couples in the country, a figure that is soon expected to rise to three million.

Some 30% of children are born into such relationships.

Professor Cochrane, the former Law Commissioner for England and Wales, believes it is high time the law caught up with the reality of family life.

He says in most cases, such couples represent genuine family units.

“They are family. One of them dies unexpectedly. And they can be taken by surprise in finding they have no entitlement under existing intestacy rules,” he explained.

The Commission’s proposals would allow any couple that have been together for five years, or who have children, to inherit from the other partner just as they would had they been married.

If the couple have been together for two years, but less than five, the surviving partner would inherit half the amount they would otherwise have been entitled to.

Writing a will

The proposals coincided with Will Aid month, a scheme to allow people to get a professional will drawn up for relatively small cost.

If more people did write a will, there would be less need for the current proposals. At the moment cohabiting couples are among the least likely to write a will. More than 80% of them do not get round to it.

Ms Stovell is amongst those who regret not doing so.

“I wish we’d done it when we decided to get together and share our lives. I do wish we had done,” she said.

But writing a will with your partner can be much harder than it seems.

In Ms Stovell’s case, her partner had a stroke three years before he died, and she thought it was just too sensitive a subject to broach. “It was something I didn’t want to suggest,” she said.

Professor Cochrane concurs. “There’s almost a superstition about making a will,” he said. “If I make one, maybe I’m going to die. Perhaps it’s easier to say to your partner, ‘shall we both make our wills?’ ”

Consultation

Any change in the law would bring England and Wales into line with Australia, Canada and New Zealand.

But it will be up to the next Government to decide whether these proposed changes should become law, and so far there has been no official reaction from the main political parties.

It is estimated that one in six couples living together are not married or in a civil partnership.

The reasons not to marry, even in long term relationships, are varied and some such decisions are positively made by the individuals concerned.

However, unmarried couples or same sex couples who have not left Wills fare little better than individuals when it comes to inheriting from their partner, and also in respect of death taxes.

The intestacy rules – what happens when someone dies without leaving a legal Will – are complicated even for married couples.

And they do not accord with how most people would like to dispose of their money and other assets.

What can be done?

The simplest step is to make a valid Will which will ensure that your assets pass to those you choose after your death.

A Will means you are also able to choose your executor i.e. the person who administrators your estate.

You can also choose guardians for any children you may have and make specific gifts of treasured items to family or friends.

It is important to remember that where the couple subsequently marry the Will is automatically revoked unless made “in consideration of marriage/civil partnership”.

Inheritance Tax

On death each individual is entitled to an inheritance tax (IHT) allowance, known as the nil rate band, currently of £325,000.

Any assets owned by the deceased in excess of this amount are taxed at 40%.

There is an exemption for all assets, whatever their value, passing between spouses and civil partners.

But they still need a Will to make this happen.

And this exemption does not apply at all to those in unmarried relationships, however long that relationship may have lasted.

In addition there are special rules where one partner of the marriage is not domiciled in the UK.

Bob and Jane

Let’s take an example: Bob and Jane who have lived together for 20 years and have three children. The family home is valued at £500,000, is now mortgage free, and is held solely in Bob’s name. Unfortunately Bob dies prematurely and although he has made a Will leaving all his assets to Jane, the IHT payable by Bob’s executors is 500,000 LESS nil-rate band deduction of £325,000 = £175,200 x 40% tax rate = £70,000 tax !

Had Bob and Jane married this IHT bill would not have existed as Bob’s assets passing to Jane would have been exempt from IHT.

Many will see this as unfair but the UK tax system is geared towards favourable rules for married or civil partners rather than long term co-habitees.

At the death

For some couples the IHT and CGT advantages of being married or in a civil partnership will persuade them that it is time to tie the knot.

For others who take no action there may be time towards the end of one’s life to do some tax planning.

Take the situation where one partner is seriously ill.

They have fairly valuable assets between them and there will be a substantial tax bill when the terminally ill partner dies.

By marrying and then transferring all assets to the ill partner (with no tax consequences) on his death all assets would pass back to the survivor without any tax liability and with an added advantage for CGT purposes.

This is because all assets owned at death are revalued for CGT purposes meaning that any inherent gain previously accruing is “washed out”.

The surviving spouse or civil partner takes over ownership of the asset at a new uplifted “cost” for CGT purposes.

Plan ahead

There are those who, for a number of reasons, may be nervous about owning assets between them without the legal commitment attaching to marriage.

For this group of people it would be possible to take life cover to provide funds to pay any IHT that may be due on the first death.

As mentioned, many people feel the tax system is disadvantageous to unmarried but committed couples.

But with some thought and planning it is possible to reduce the likely tax burden that will arise on the first death.

Dying intestate… some case histories

My brother died suddenly at the age of 39 earlier this year without making a will. He had learning difficulties and needed family support throughout his life. Although he had stated who he would want to receive his assets, his problems made it difficult for him to undertake the process of making a will.

After his death, we were advised that as he was not married and had no dependants his estate would be shared equally between his surviving parents. Our biological father was not in our lives. But when he was traced he stated that he intends to claim his full entitlement despite, to the best of our knowledge, not having seen my brother for many years. In the circumstances of this case, this rule has created a deeply unsatisfactory result.

Jeremy, Harrogate

My mum lost her partner (unmarried) of 9 years, and his children from a previous marriage have asked my mum for “everything” that belonged to him – and by law my mum has to give it to them. Even the car that my mum paid half of. Three of his children had very little contact with him. They have never offered a penny and my mum gave up her job to care for her partner so now is left with nothing. His children rang her up 3 days after the funeral asking for all his pension papers. It is so unfair.

Carly, South Yorkshire

I am single and have made a list of “where it all is”, which starts: “As you sit at my desk, on the shelf behind you is a row of files; the 1st, named BANK, has details and statements for my current a/c…and so on. I keep this list up-to-date and send copies to my executors and my solicitor. There is a second list of “How to get rid of it all” with suggestions of people to contact to sell my motorbike, my large collection of specialist books, etc.

It does mean that someone will know your business (very un-British!) but the alternative is chaos for the same person at a time when they are already under the stress of grieving.

Keith, Hants

My father died in 2004. He had made a will dividing his estate between his children. My brother was made executor of his will. However my brother decided that I did not deserve my share and has refused to pay me any money, around £65,000. This has stopped my own children from making wills. I have a profoundly handicapped son of 44 who lives at home with me full-time and needs care at all times. My brother used the excuse that I never helped with the care of my dad as the reason for my not getting a share. So beware if you write a will, make sure that the executor can be relied upon to carry out your wishes, as you may not be around to do anything about it.

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