Latest news with #wills
Telegraph
4 days ago
- Business
- Telegraph
Family inheritance disputes hit 10-year high
Family inheritance feuds have hit their highest levels in more than a decade, figures show. More than 11,300 wills were challenged last year, up from 10,410 in 2023, according to official data revealed to The Telegraph by a Freedom of Information request. The figures represent a marked increase in disputes, with challenges up 56pc from before the pandemic. Lawyers said that rising property values and larger estates mean that there's 'more at stake' . In Britain, a person has testatory freedom – the right to decide to whom or what they leave their money – in all but very limited circumstances. This is in contrast to countries such as France, where a portion of estates must be left to direct descendants. However, this principle is not absolute as those who were financially dependent on the deceased can lay claim to the estate if they are not included. To do this, the person will usually lodge a 'caveat'. This blocks the granting of probate, the vital legal document needed to distribute an estate to the beneficiaries. Last year, 11,362 caveats were issued, and it's estimated that approximately 60pc of claimants succeed. The majority were settled out of court. Less than 5pc will be successful at trial, lawyers said, and it can be very expensive. Scott Taylor, partner in private wealth disputes at law firm Moore Barlow, said: 'Rising property values mean there's simply more at stake when it comes to inheritance. The cost of living crisis has left many people viewing inheritance as essential rather than a bonus. He said: 'The concern is that there's little evidence this trend will slow as the economic screw continues to turn. Courts are already close to capacity, and that could become a serious issue in the near future before even considering the human impact on those involved.' Tamasin Perkins, partner at firm Charles Russell Speechlys, said: 'Family tensions and financial pressures are all playing a part. The rise in house prices also means that the family home is becoming more important to younger family members who cannot otherwise afford to get on the property ladder. 'At the same time, people are becoming more switched on; caveats are cheap to obtain and can be done using a simple online process and without lawyers. 'Whilst accessibility is important, this process can be open to misuse when people use caveats tactically to try to force an early settlement.' The surge in feuds comes after the Law Commission published a landmark report into wills in May, having started an investigation into the legal documents in 2016. The report found that current laws are not doing enough to protect the elderly and vulnerable from financial abuse, amid a rise in so-called 'predatory marriages'. The commission also recommended that electronic wills be considered valid, that marriage should no longer invalidate a will, and that those aged over 16 should be given the right to make a will, rather than just those over 18. And it said that more informal wills should be recognised by courts, and proposed changes to rules about when disabled or mentally incapacitated people can make decisions for themselves.
Forbes
13-06-2025
- Business
- Forbes
The Parts Of Long-Term Financial Planning That Everyone Should Know
Confident young Asian woman with smartphone looking out through window while sitting in a cafe ... More having coffee. Making a personal financial plans and investment decisions. Wealth management. Business, banking, finance and investment concept Mapping out your finances for the long haul can help you grow wealth, build a reliable safety net, and weather life's twists and turns. As financial markets become more volatile and retirement planning seems increasingly out of reach, especially for millennials, it's imperative to start as early as possible, securing your financial future. Whether it's not having the right amount of insurance in place, neglecting to contribute to the correct retirement accounts, or not ensuring a seamless estate plan, many people have holes in their long-term financial planning. Learn about six key components you can include in your plan and how each one can strengthen your financial well-being. A will is a legally binding document that outlines how your property should be divided and how personal matters should be managed after your death. It can also designate guardians for your minor children and include instructions for end-of-life preferences. In contrast, a trust is a legal structure in which you, as the grantor, assign a trustee to oversee and manage assets for the benefit of specific individuals or organizations, known as beneficiaries. Both wills and trusts are critical estate planning tools that can help ensure your wishes are carried out and your loved ones are provided for. Having a will allows you to direct assets to the right people and name an executor to settle your estate. A trust offers extra benefits: It can bypass the probate process, saving time and preserving privacy for your heirs, and it can even include provisions for managing your assets if you become incapacitated—something a will cannot do. A taxable brokerage account is a regular investment account that you can open through a brokerage firm using money that's already been taxed. It gives you the flexibility to trade various assets, such as bonds, stocks, mutual funds, and ETFs, without the benefit of tax deferral or shelter. Unlike retirement accounts, a taxable account does not provide upfront tax deductions or tax-deferred growth. Instead, you pay taxes each year on any interest, dividends or capital gains earned in the account. A 401(k) plan is a company-sponsored retirement account that employees can contribute a percentage of their income toward for long-term savings. It can help automate saving, provide tax-deferred growth, and significantly boost your savings through employer matches. 'Given that just 11% of workers in private industry receive a pension, 401(k)s are a key pillar in building a secure retirement,' writes finance journalist Adam Shell. 'In fact, these tax-advantaged accounts remain the backbone of most people's retirement saving strategy.' Over decades, consistent 401(k) contributions can grow into a substantial fund to support you in retirement. IRAs come in two main types: traditional and Roth IRAs. Traditional IRAs allow you to make tax-deductible contributions in the year they're made, lowering your taxable income at that time. However, in retirement, the withdrawals you take are taxed as ordinary income. Roth IRAs, on the other hand, are funded with after-tax dollars and offer no immediate tax break, but qualified withdrawals in retirement are completely tax-free. By consistently contributing the maximum you can and investing prudently, an IRA can grow into a sizable component of your retirement nest egg. Term life insurance is the simplest, most straightforward type of life insurance. You purchase coverage for a specified term, such as 10, 20 or 30 years. If you (the insured person) die during that term, the policy pays out a tax-free lump sum death benefit to your chosen beneficiaries. If you outlive the term, the coverage ends, or you may have an option to renew at a higher rate. Term life insurance is fundamental for anyone who has others depending on their income or care. If you have young children, a spouse or aging parents who rely on you, life insurance ensures they are not left financially stranded. Indexed universal life (IUL) insurance is a form of lifelong coverage that combines a guaranteed death benefit with a cash value element that can grow over time. Unlike term life policies, IUL stays in force as long as you continue to make premium payments. It also includes a savings component that accumulates value, often tied to the performance of a market index, offering the potential for wealth building or protection. Rob Graham, CEO of Wealth Express, a platform that provides connection to IUL advisors, describes the advantage of an IUL as not just the protection of a death benefit, but also a wealth tool for during one's lifetime. As Graham observes, 'An IUL can accumulate wealth for an individual 'tax-free.' That wealth can then be accessed throughout one's lifetime for any reason, at any time, with no early withdrawal penalties (after the first year), 'tax-free' through loans that do not have to be paid back.' In practical terms, this means that as your IUL policy's cash value grows, you can borrow against it and use that money—for college tuition, a business investment, retirement income, or any purpose—without triggering taxes because loans from life insurance are not considered taxable income. Despite their potential benefits, IULs have often attracted criticism as a result of poorly set up policies. This underscores the importance of choosing the right financial advisor to help establish a strategy for an IUL. Graham notes, 'Many ill-informed agents max out the insurance and minimize the cash value component of the contract. This is bad for the consumer, and usually the consumer learns about it too late to do anything about it.' To truly realize the 'personal banking' advantages of an IUL, the policy should be designed with a relatively lower death benefit and higher contributions going into cash value, within allowed limits. While annuities are often one of the more misunderstood retirement strategies, the right product can provide a predictable income stream in retirement without exposure to volatility in the stock market. 'Recessions can be damaging to the economy and the stock market; they don't have to be damaging to your retirement lifestyle,' says Ty Young, CEO of Ty J. Young Wealth Management. 'The proper annuity, used correctly, can be the difference between a recession ruining your retirement and living the retirement lifestyle you've always dreamed of.' When you buy an annuity plan, it will pay you a guaranteed, specified sum of income upon reaching a certain date. Long-term financial wealth and security is built through incremental steps over a long period of time. Starting with the right infrastructure, such as robust estate planning, asset protection, and tax strategy is crucial. Then it becomes a process of remaining consistent in your investing and allowing compound interest enough time to accumulate.
Telegraph
24-05-2025
- Politics
- Telegraph
Predatory marriages could be banned after pensioners ‘groomed' for inheritance payouts
Ministers are considering reforming marriage rules to stop elderly people from being preyed on and their families disinherited. So-called 'predatory marriages' – which lawyers claim are on the rise – see the elderly and vulnerable groomed into marriages they may not properly understand. Current rules mean that pre-existing wills are invalidated when a person marries, meaning that spouses, who can inherit without paying any death duties, stand to get everything under intestacy laws. But a major report from the Law Commission, published last week, recommended that wills should no longer be discarded when a person marries. In a letter to Sarah Sackman, a justice minister, and Fabian Hamilton, a Labour MP, raised the case of Joan Blass, a 91-year-old woman suffering from dementia who married a younger man in a 'secret' wedding. She was widowed in 2008 but towards the end of 2011 struck up a conversation with the man, who was standing at the end of her garden. Within a month, he had moved into her spare bedroom. The marriage – made without the knowledge of Ms Blass's family – meant that when she died in 2016, she was buried in an unmarked grave, against her wishes, and 'stripped of all her assets and money'. Her husband claimed she did have the capacity to marry him and that it was a 'loving and caring' relationship, the i newspaper reported. Mr Hamilton wrote on X: 'The Wills Act hasn't been updated since 1837. Marriage should never revoke a previous will. 'The Law Commission has put forward decisive recommendations. I have written to the justice minister calling on the Government to act on them.' Current rules 'hard to justify' The Labour MP put forward a Private Members' Bill in 2018 proposing a change in the law, which was supported by MPs including Rachel Reeves and Sir Ed Davey. Mr Hamilton said he had been contacted by several families who had experienced 'predatory marriages', demonstrating the scale of the issue. Daniel Edwards, a partner at law firm Browne Jacobson, said many people were unaware of the rule, and that it 'can seem a little hard to justify, given changes in society since the rule came about.' Mr Edwards added: 'It is also one that can be open to abuse; in cases of 'predatory marriage' a will – that perhaps leaves everything to the testator's children – would in all likelihood be revoked by a marriage. 'While Law Commission reports can sometimes take years to be considered and debated in Parliament, the fact we have already seen the Government's response suggests there is motivation and intention to bring forward changes in the not-too-distant future.' Government 'recognises current law is outdated' Ms Sackman said in response to the recommendations: 'Marriage should no longer automatically revoke a will – this recommendation is designed to address the problem of 'predatory marriages' where vulnerable people are befriended, and the effect of the marriage is to disinherit families and others from any will they have made.' The Law Commission began looking into wills in 2016, before pausing the research in 2019 to focus on marriages at the Government's request. It published the results of two public consultations and draft legislation earlier this month. Other recommendations from the review included allowing children to make wills, making electronic wills valid and the recognition of more informal wills. The commission also proposed abolishing rules which stop second spouses, stepchildren and divorced partners from challenging mutual wills under the Inheritance Act 1975. Ms Sackman added: 'The reforms proposed by the Law Commission are significant and wide-ranging. They deserve detailed consideration. 'The Government recognises that the current law is outdated, and we must embrace change, but the guiding principle in doing so will be to ensure that reform does not compromise existing freedoms or protecting the elderly and vulnerable in society from undue influence.'
Times
22-05-2025
- Business
- Times
At last, a proposal to overhaul 188-year-old wills legislation
Death and taxes may be the two certainties in human existence — but legal strife is a subcategory that is rapidly attaching itself to the former. Battles over wills and inheritance are rolling before the courts in growing numbers as a boom in property prices over the past 30 years has significantly increased the value of previously modest estates. Within the past few months alone, this newspaper has reported on a court row between an alternative therapist who specialised in energy wavelength treatments and her sisters over their inheritance and two emotional support dogs, and another between an electrician and his sister over a £700,000 estate where a video showed the sister 'propelling' their mother's hand to sign a deathbed will. The wealthy
Daily Mail
21-05-2025
- Politics
- Daily Mail
Getting married might NOT revoke your old will under plans by government's legal gurus
Getting married might not automatically revoke older wills in future under plans to protect vulnerable and elderly people from financial predators. Changes drafted by the Law Commission would mean former beneficiaries were not immediately disinherited, because at present a previous will becomes obsolete on marriage. This rule favours new spouses, because if someone dies without making a new will the intestacy rules allow them to inherit all or most of an estate. There are ways to protect your existing arrangements if you wish, by making a new will 'in contemplation of marriage' that cannot be revoked, or very soon after you marry. But many people are unaware of these rules, and vulnerable or elderly people can fall victim to 'predatory marriage' by unscrupulous people looking to inherit their estates. The Law Commission, a body that reviews laws and recommends changes to the Government, last week published a draft bill to replace the Wills Act 1837 - which it described as 'outdated' and 'largely a product of the Victorian era'. Its proposals include abolishing the rule that a will is automatically revoked when someone marries or enters a civil partnership, 'bearing in mind the serious problem of financial abuse, particularly of the elderly'. The Commission adds: 'This rule can be exploited by those who enter a predatory marriage with a vulnerable person – marrying them in order to inherit from them. 'Predatory marriage is a form of financial abuse which has devastating consequences for the victims and their families.' The Commission's other proposals to update existing legislation on wills include: - Reducing the minimum age when someone can make a will from 18 to 16; - Increasing protections for people coerced into making a will; - Clarifying the law on testamentary 'capacity', which determines whether someone is fit to make a will; - Making electronic wills formally valid, subject to requirements to ensure they are safe and reliable. The Government responded that it will give detailed consideration to the Law Commission's 'significant and wide ranging' report, and make further announcements in due course. Sarah Sackman KC MP, Minister for Courts and Legal Services, says: 'This is the first major review of the law on making wills since the Wills Act 1837 was passed. That legislation established certain important principles in English and Welsh law that have stood the test of time, such as people being free to make a will to set out how they wish their assets to be distributed after their death. 'Another important principle it established was putting in place formalities to making a will so that safeguards are built into the process. 'However, society has changed enormously since the early 19th Century and technology has transformed our lives.' Sackman went on: 'The Government recognises that the current law is outdated, and we must embrace change, but the guiding principle in doing so will be to ensure that reform does not compromise existing freedoms or protecting the elderly and vulnerable in society from undue influence.' Emily Deane, technical counsel at the STEP body of inheritance professionals, says: 'Reform of the Wills Act is long overdue and is welcomed. 'It brings with it far-reaching implications particularly concerning the proposed abolition of the law that revokes a person's will when they marry or enter a civil partnership. 'People need to be made aware ahead of any changes to the law, the impact, and the importance of having a will and keeping it updated. 'This will ensure that any changes do not lead to an increase in inheritance disputes and litigation, further strain on the legal system, confusion and distress for bereaved families.' Deane notes that the legal profession is split over whether marriage should revoke a will because it could mean more inheritance disputes. Therefore, she says potential risks and unintended consequences need to be addressed and any changes accompanied by a strong awareness campaign by the government. Deane adds that ahead of any change to the law, people should watch out for signs of financial abuse, including predatory marriage, which often aren't discovered until after a victim's death. She also stresses the critical importance of updating wills, especially after significant life changes like marriage, and when children and stepchildren are involved. Jade Gani, chief executive of Circe Law and Director of The Association of Lifetime Lawyers, says: 'We're analysing the full detail of the Law Commission's recommendations, but we welcome this long overdue review and believe the proposed reforms are a positive step towards modernising wills law. 'The changes should make the process clearer, more accessible, and better suited to the way people live today. 'The proposal to remove the rule that automatically revokes a person's will when they marry or enter a civil partnership is a welcome move. 'It could help reduce the risk of people being left unintentionally intestate and offer stronger protection against financial abuse, such as in cases of predatory marriage. 'We support changes that aim to better safeguard and protect anyone whose circumstances make them vulnerable, and ensure their wishes are respected.'
