InvestmentsJun 13 2019

How to help clients make a will

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How to help clients make a will

Despite constant reminders about the importance of making a will, the majority of UK adults do not have one.

In 2018, research from Unbiased found 60 per cent of UK adults had made no such provision.

A similar study of 1,000 adults by Percy Hughes & Roberts earlier this year put the figure at 67 per cent, despite 90 per cent of respondents wanting to leave assets to their immediate family.

Sarah Saunders, personal tax manager for RSM UK, comments: “People always worry about tax, but the most important thing in your will is to make sure that your money is used in the way you would want - to protect and support the people you care about after you are gone.”

It is particularly important for couples who are cohabiting but not married to have a will.Rhoda Copper

Will Hale, chief executive of Key, agrees: “If you don’t have a will, you will die intestate and the state will be responsible for dividing your estate.”

Typically, only close relatives and spouses/civil partners would inherit under these circumstances, which means if a client’s hated brother is the only living relative then he will inherit your estate, unless there is a will.

Mr Hale advises that, when clients are considering making a will, they should work with their advisers to compose a list of all desired beneficiaries, which would include both valuable assets and sentimental items.

This point is hammered home by Rhoda Copper, chartered tax adviser and council member of the Institute of Professional Willwriters: “It is particularly important for couples who are cohabiting but not married to have a will.

“This is because the intestacy rules do not provide any protection for co-habitees, so they could find themselves at the mercy of the deceased’s family.

“It would possible be for the co-habitee to make a claim under the Inheritance (Provision for Family and Dependants) Act 1975, but this could be costly and take some time.”

And when should clients make a will?

Robert Clough, investment manager at Thesis Asset Management, opines: “It is never too soon to make a will. If you have any assets then you should think about doing one.”

Working with professional partners

Tracyann Kneen, head of product technical for Nucleus, advocates partnering with solicitors and other professionals to get the best outcome for the client: “The appropriate executors will need to be named to ensure the estate is dealt with according to the client’s wishes.

“There will be circumstances when it is particularly advisable to use a solicitor, such as when several family members could make a claim on the will or where there are children your client wishes to make a provision for.”

Ms Copper believes it is vital to choose the right executors to help “locate and identify the deceased’s persons assets and liabilities, determine the beneficiaries, in some cases apply for a grant of probate, and arrange for the distribution of the estate in accordance with the terms of the will”.

Appointing an independent or professional executor could be considered in some cases, although this will bring an additional cost.

Protections and qualifications

Scarlett Musson, business development director for APS Legal & Associates, advocates making sure whoever writes the will has appropriate qualifications and adequate insurance.

Ms Musson explains: “I would recommend ensuring the writer has a professional indemnity policy of at least £2m, to compensate the client if necessary.” 

She also suggests the following before clients draw up a will:

Meeting face-to-face – This is important not only to identify the client, but also to ensure the client making the will is not under any undue influence from others.

Exclusions – If clients exclude somebody from a will, then further notes and reasons why should be documented, should the person excluded wish to contest this.

Storage – This needs to be located at the time of need, and in good condition. Should the will be damaged, it can cause significant problems.

Updates – Updates are recommended every two years, as family circumstances change. Marriage invalidates a will; divorce removes the person from this completely but the will is still valid.

Signing of the will – This must be completed compliantly. By working with a professional, you can ensure this aspect is done correctly, and therefore the will is valid.

It is also important for advisers to make sure whichever professional they work with has a robust vulnerable client policy in place.

Ms Musson clarifies: “Although it will not follow FCA regulation, there are equally stringent laws concerning the mental capacity of the individual(s) making the will.

“Protecting vulnerable clients is not only a legal/regulatory requirement, but also a moral obligation.”

Constant review

It is also important to review your clients’ wills regularly, as circumstances and relationships are always changing.

According to Ms Kneen: “It’s worth reminding clients wills aren’t a ‘one and done’ exercise – they need to be reviewed to reflect changes in circumstances or wishes, for example separation, getting married or remarried.”

Mr Hale adds: “While a will is a legally binding document, it can be updated as your clients’ relationship with people changes and your assets grow/dwindle, so the decisions you make can be reversed.”

But as clients get older, and questions over vulnerability are raised, it is even more vital to work with lawyers and anyone given the power of attorney to ensure any wills have been made with the full knowledge of the person making it.

simoney.kyriakou@ft.com

Simoney Kyriakou is currently on maternity leave