Fall in number of wills being made blamed on recession
Fall in number of wills being made blamed on recession
PEOPLE who have delayed drawing up a will because of the recession could be making the biggest mistake of their lives.
Ellis Jones Solicitors has seen a 50 per cent fall in the number of will appointments in the first two months of this year compared with the same period in 2008.
The Dorset law firm blames the recession with people choosing to spend their hard-earned cash on day-to-day living rather than making preparations for their death.
More than 70 per cent of adults in the UK currently do not have an up-to-date will.
Solicitor Elizabeth Gilmour warned: “Avoiding making a will is not just a false economy but could, ultimately, be the biggest mistake someone makes in their life.”
She pointed out that, contrary to popular opinion, it is not the case that everything goes to a spouse when someone dies.
What actually happens is that:
- If there are no children, the spouse gets personal belongings, a sum of £450,000 and then only half of everything else outright. The remaining half goes to various relatives in a specified order – first to the parents, if they are still alive, and, if not, to brothers and sisters.
- If there are children, the spouse only gets personal belongings, a sum of £250,000 and the income from one half of the balance. The rest goes to children on reaching 18.
Elizabeth said: “In truth, this is unlikely to be what most people want and can result in financial hardship for a spouse at what is already a very difficult time.
“Worse still, if one of an unmarried couple dies without a will, the surviving partner would not be entitled to anything. However, there may be a right to make a claim to the court in these circumstances.”
Elizabeth added that there were many other examples of undesirable circumstances that can arise if people leave it up to the rules that apply where there is no will.
“Nobody doubts that many people are facing considerable financial pressures at the moment but making a will should still remain top of anyone’s list of priorities,” she said.