The subject matter of this month’s article is informed by an unexpected scenario that cropped up for us recently.
We were asked to quote for an estate, and the facts were straightforward; a husband had died with his wife alive.
Everything was in joint names, with the exception of the husband’s ISA account. Owing to the fact that this was over £50,000, the maximum that a bank would pay out, it was necessary to obtain probate.
We provided a quote for the engagement over the phone and as it was over 50% cheaper than any local solicitor had quoted, we were asked to act.
All was going well until we came to read the Will, which had been professionally drafted.
The deceased individual did not have any children, and so it was thought that everything would go to the wife as the sole beneficiary.
The Will left all chattels e.g., jewellery, possessions, and cars to the wife. It then said that if the wife had pre-deceased, then this lump sum of about £50,000 from the husband’s ISA would go to charities. As the wife had survived, the clause was not applicable.
The Will then went on to state that everything else was to be shared between nephews and nieces. However, the solicitor drafting the Will did not include a condition that this was only to happen if the wife had pre-deceased. Was this an error or did the husband mean this to happen?
The wife then produced her own Will which had been drafted by the same solicitor, at the same time. She believed this left everything to her husband but, on examination, it had actually been written in the same manner, so clearly an error.
The “good” news is that assets held in joint names (e.g., the bank accounts) pass by survivorship, and not by the Will. This means that the other joint holder automatically inherits.
The house was also held as joint tenants and so automatically passed to the wife. However, it’s worth noting that had the property been held as tenant in common, this would not have been the case.
This leaves the ISA as the ‘outstanding’ problem. At the time of writing, we do not know if the nephews and nieces will return the legacy to the wife or if we are going to have to commence action against the solicitor who drafted the Will.
Clearly, the couple had taken advice, but a simple error had led to an unfortunate result.
It is therefore important that a Will is read thoroughly to make sure it reflects your intentions accurately, and without error.
Our sister company, GH Wills Ltd, always ensure that our clients do understand the drafting and, as part of their standard practice, the Will is always read by a separate person to the one drafting to ensure it is correct.
GH Probate Ltd is authorised to carry out the reserved authority of non-contentious probate by the Institute of Chartered Accountants in England and Wales.
For advice on probate matters, contact Jenna Boddington or Barry Jefferd on 01480 426500 or probate@georgehay.co.uk.
