Wills may need to be re-drafted in the wake of the credit crunch
and recession, Martin Green, a partner and head of the private
client division at Stratford-upon-Avon solicitors Lodders, has
cautioned.
He points out that wealth is down by perhaps 30 per cent across
the board yet wills, drawn up in better times, may fail to reflect
this.
"I have seen a number of cases where people have left legacies
to the children and perhaps not enough to the surviving spouse," he
noted.
"Naturally, this is the law of unintentional consequences, and
nobody wants to see a loved one struggling to get by. It shows how
important it is to keep fully abreast of your affairs, particularly
in challenging economic times."
Much the same situation can arise in the case of gifts made to
charities.
The problem comes if an individual has maybe made a string of
legacies - their old rugby club, their old school, provision for a
seat at their favourite beauty spot…
These, notes Mr Green, may have seemed fine at the time - with
the children and surviving spouse adequately looked after they
could easily be accommodated.
But the position was very different in today's straitened
circumstances.
The danger was that legacies could now take a disproportionate
amount of the overall estate, leaving what might be considered an
inadequate provision for family members.
Mr Green said: "For most couples their children are at the
forefront of their thoughts when a will is drawn up.
"Parents want the best for them and so hand down what they can
to help with all the trials of life - buying a new home, helping to
educate the grandchildren and so on.
"Where appropriate they may also want to support their community
- the local hospital, the church, or the needy.
"Charities are also suffering in the downturn, but these
sorts of sums can mount up and, given the degree to which
investment and property values have fallen, may put a sizeable dent
in an estate.
"Instead therefore of leaving fixed sums as legacies, it may be
safer to revise your will and perhaps leave percentage shares.
"And certainly I would advise a fresh look if there is any
danger that the surviving spouse ends up with not enough to live
comfortably."