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Good Legal "Housekeeping" Tips

It is generally recognised that everyone should make a Will to provide on death for their nearest and dearest. Yet statistics show that only one in three people actually hold Wills. Why is that?

Maybe the majority of people prefer to simply put off the time when they think they should make a Will, or simply assume that everything will go to their dependents. However, if a person dies intestate (i.e. without making a Will) then the nearest blood relative will require to petition the Sheriff Court to be appointed as an Executor, and also apply to the insurance company for a Bond of Caution which is really an insurance policy to indemnify the actings of the Executor during the administration of the Estate. Even for a modest Estate the premium can be several hundred pounds. So it does make good sense to make a Will, and also which provides your family with a written statement of your intentions so there can be no assumption as to what you actually intended to happen with your Estate.

Many people are also concerned about losing the value of their home, should they go into long term care.  Transferring your house to your children will not work, as the local authority will regard this as a deliberate deprivation of your assets and look to reclaim the property to offset any care costs. I often suggest that it could be a good idea to make sure the title to your property is held in equal shares. Many titles are held in name of “husband and wife and survivor”, so on the death of the first party the title automatically passes to the survivor. This could then expose the entire value of the house at risk to any potential long-term care costs. If, however, you ensure that the title is in equal shares, then you can provide in your Will that on death your one half share of the house passes immediately to your children. This would limit the potential risk for long term care costs to the surviving spouse by 50% of the value of your property.

Please feel free to contact me for further information on these topics.

Gordon Sommerville, Solicitor, Pomphreys