However, we have seen more and more cases of late where clients have Wills in place which contain an ‘off the shelf’ structure meaning they have not been drafted for the individual’s particular circumstances and, are simply not fit for purpose.
The use of trusts in Wills can be very effective for the right client. There are a number of advantages for the use of trusts, they are a tax efficient method and provide safeguarding opportunities for a testator’s beneficiaries. However, it is essential to consider a client’s family circumstances and that of their beneficiaries when ascertaining what structure would work best for them.
Whilst there are clear advantages, trusts are complicated structures and the use of them should be carefully considered to ensure the structure is workable when the testator dies. The use of a trust or multiple trusts creates administrative burdens on death that should be considered alongside the advantages of creating a trust.
If a Will includes trusts which are not relevant for the individual’s circumstances, and they are not wanted or needed at the time of death, it is too late to ignore them. In this scenario, work will be required to ‘wind up’ these trusts to administer the estate properly and effectively. This can be both time consuming and costly and can be avoided altogether by ensuring the Will you have in place works for you and it is fit for purpose.
With these points in mind, we would urge you to review your current Will (no matter how recently it was made) and ask yourself two basic questions:
- Do you understand what your Will does?
- Does the Will work for you and your family arrangements?
If the answer is ‘No’ to either of these questions, or if you would like to discuss this further, please contact one of our private client solicitors by email or call on +44(0) 20 7822 1629.
