Question re wills

Trickyann

Any advice with the following would be helpful. Person A had a will that left unmortgaged property and chattels to B and C and residue of estate to DE & F after funeral expenses and debts etc. Question arises as property sold for care and money added to pot prior to death but only a small proportion used for care (not actual figures but say sale 100000 and only 10000 used). Would B and C get the remaining 90000 as that was from the property they were bequeathed or would D E and F get a third of the remaining pot each as the property had gone as a physical thing leaving B and C with nothing when the original will show that A had clearly intended B and C to be the main beneficiaries due to the value of original bequests? Thanks in advance.

Keep_pedalling

It depends on the exact wording of the will. Assuming that it simply names the house as a bequest to B & C then that bequest fails and all the cash is likely to end up going to the residual beneficiaries.

Things are a bit different if the deceased resided in Scotland and B&C are children of A, because Scottish law does not allow children to be completely disinherited.

Trickyann

Thank you Keep Pedalling, no B & C are nephews and only remaining family (A's only sister predeceased A by a good few years). Yes will states property, personal effects and contents to go to B&C and residual estate to D E & F (friends of A), and in England so it would seem poor advice, as to event of care being needed and the house sale being forced, or ignored advice / or that will never happen to me scenario at the time of making the will?

Mojisola

Trickyann wrote: »

so it would seem poor advice, as to event of care being needed and the house sale being forced, or ignored advice / or that will never happen to me scenario at the time of making the will?

It would have been possible to name the property and to add a clause that would ring-fence the capital if the property had been sold or to transfer the inheritance if the property had been sold and another property bought.

It's best to avoid naming specific properties or bank accounts in wills.

Trickyann

If nothing else this is a lesson in how horribly wrong wills can go if not drawn up correctly and possible outcomes considered. - Exit stage left and check my own!

Tuesday_Tenor

If D,E and F want honour the original intention of the will they can

- receive the inheritance but then make gifts to B and C
Or
- consider making a Deed of Variation such that they divert the funds relating to the original property to B and C without inheriting it themselves.

The latter is useful if the eventual estates of D,E and F are likely to incur IHT. They would not want to inherit extra, give it away, but, dying within 7 years, have it included in IHT calculations.

If IHT is not an issue for D, E and F, then simply gifting it to B and C might be more straightforward.

But, at the other end of the wealth spectrum, note that there would be complications if D,E or F are on benefits. They cannot either refuse an inheritance they are legally entitled to, or give it away, without consequences. They would need to declare the inheritance, and, quite rightly, would lose most benefits. They can't then give the funds away and expect to resume receiving benefits.