A recent decision made by a number of high street banks means that the amount that will be released from a deceased customer's account without a formal Grant of Representation has increased. However, this may not be the good news it seems at first sight.
The usual process when someone dies is that banks and building societies freeze their accounts until the person dealing with the estate - the Executor (where there is a Will) or the Administrator (where there is no Will) - has applied for the Grant of Probate or Grant of Letters of Administration. In the meantime, the only access allowed to accounts is to pay the funeral bill and any Inheritance Tax. This ensures that the right person deals with the estate, and the estate passes to the correct beneficiaries.
That said, the Small Estates Procedure has always allowed accounts holding less than a set amount of money to be closed without the need for a Grant. This amount is no more than £5,000 but separate to this, each bank and building society has set its own limit where they will close an account without the need for a Grant.
Whilst the limit set by banks etc. has historically been up to £15,000, many high street banks have now made a decision to raise their limit, with some increasing it as high as £50,000.
It seems the thinking behind the increase is to make life easier for those dealing with the estate. However, obtaining a Grant is a legal requirement which helps ensure that the right person deals with the estate, and the right people are paid the correct amount of money.
Is it right that banks are now able to bypass this procedure and release large sums of money?
The risk now is that potentially large sums could be released to those who are neither responsible for dealing with the deceased's estate, nor a beneficiary of the estate.
Contact Oratto on 0845 3883765 to speak with an adviser or use our contact form to arrange a call-back.
There have been numerous stories the news recently about the ownership of online and digital assets when someone dies. With more than 6.8 billion mobile devices and more than 2 billion social media accounts in the world, it's no surprise that this is becoming a bigger issue. The big question lies in the question of ownership, not of the device itself but the information stored on it.
Music purchased from an online store such as iTunes only provides the purchaser with a licence to use the information so it cannot be transferred to a beneficiary. Digital photos and videos will depend on whether they are original or downloaded from someone else's website or Facebook page. If they aren't original a person may not have any authority to pass this information to any beneficiary or purchaser of the device.
If the deceased did own the rights to any software or downloads on the device, those rights may not automatically be transferred with the ownership of the device itself. One example would be with intellectual property for a novel written by the deceased that is saved on a device. The deceased may have given the associated intellectual property rights to one person but left the device itself to someone else. The intellectual property would need to be copied and then deleted before the device can be handed over.
Additionally, if any intellectual property saved was created during the course of the deceased's employment, the employer may own the intellectual property rights. This needs to be transferred and deleted before the device is given to the beneficiary or sold.
Computing devices may also uncover if the deceased had online banking accounts, PayPal or gambling accounts not currently part of the estate. This information about other funds or debts needs to be taken into account when dealing with the estate.
The deceased's personal representative will need to review the information on the deceased's computing device and take necessary action to ensure all relevant laws are complied with. If the devices are protected using passwords, then they may need to enlist a suitable expert to assist with gaining access.
There is also the issue of the deceased's online passwords. The way to make sure all online accounts, whether social media, email or bank accounts, can be accessed after death is to make sure that passwords are included (and kept up to date) as part of the documentation when planning your estate.
Oratto can assist with all areas of estate planning and estate administration so please contact us if you have any questions about anything raised in this article.
Contact Oratto on 0845 3883765 to speak with an adviser or use our contact form to arrange a call-back.
An interesting Court case has hit the headlines recently continuing the trend for high profile contested Wills and probate cases causing a media stir.
A widow (Mrs Vindis) of a very wealthy English businessman (Mr Vindis) is challenging his Will, from which she is likely to receive £36,000 (the Will did in fact leave £1m to the widow, but much of that value was tied up in properties that were owned jointly by her, so the next gain will be approximately £36,000).
Mr Vindis' wealth came from the Vindis Group of car dealerships. He died aged 58 with an estate estimated to be worth approximately £12m. Two months before his death, Mrs Vindis issued divorce papers. As the couple were still married at the date of his death, the divorce papers and any financial order that the Courts may have made in the divorce proceedings, have no effect. This means that Mr Vindis' Will takes priority.
The couple had been together for almost 40 years and although the Family Court position is that on divorce the starting point is equality, it is by no means certain that Mrs Vindis will receive anywhere near the £6m she is claiming. Mr Vindis had left the majority of his estate to his two children, aged 26 and 28. The estate is also facing a claim against it from Mr Vindis' sisters.
Mrs Vindis' claim is based on the Inheritance (Provision for Family & Dependants) Act 1975. Often called the Inheritance Act, this is not new law by any stretch of the imagination but allows certain categories of people (spouses and children being two of these) to claim "reasonable financial provision" from a deceased's estate.
The Court proceedings have been adjourned and so it will be a case of watch this space for legal commentators. If the matter does reach full trial and does not settle out of Court, it will be one of the largest estates a Court has had to decide on using the Inheritance Act and we will bring you the result and explain the consequences.
How Oratto can help you
The size of the estate in this matter is extraordinary but whatever the value, more and more Wills are being disputed and estates challenged. If you are a disappointed beneficiary or an executor facing a claim from a disappointed beneficiary, please get in touch with an Oratto member lawyer, Wills and probate specialist today.
Contact Oratto on 0845 3883765 to speak with an adviser or use our contact form to arrange a call-back.
So far, 2016 has taken its toll in terms of celebrity deaths, more recently the sudden death of music superstar Prince that has hit the headlines.
Whilst Prince fans are devastated, what has animated lawyers is that (we believe) Prince did not leave a Will. Many might find this surprising, given his estimated $300m net worth but at the moment it seems that his estate will pass to his sister and his half siblings, who would then have to deal with the estate, the Prince brand, record label and unreleased songs.
Nobody yet knows whether this is what Prince intended or what he wanted. What is known is that his sister has already issued proceedings in the Probate Court. This is not a challenge to his estate but is to appoint a special administrator to deal with the estate, which would also mean a Probate Court Judge looking at any claim brought to dispute the estate or if a Will does appear. This could mean that Prince's estate is tied up in Court proceedings for years to come.
What does this mean for you?
In England, if a person dies without a Will (intestate) the law decides, based on a fixed order of priority - who gets what. This is not always what families intend, especially where the rights of any unmarried partner who would be ignored, as would any gifts that the deceased wanted to make to people outside of his family, for example friends or charities. The law also does not cater for the circumstances in which an intestate person has not had contact with their family for many, many years and so may not want to leave their estate to blood relatives.
The possibility of Court proceedings to challenge a Will or an estate if there is no Will can never be totally excluded and challenges to Wills and estates are on the increase, so to make sure that as far as possible, what you want happens, Will advice is essential.
To get in contact with a member solicitor from our Will writing team, please try one of the contact options listed on this page. Furthermore, if you have not benefited from an estate in the way which you feel you should have done, please select a lawyer who can assist with contentious probate matters.
Contact Oratto on 0845 3883765 to speak with an adviser or use our contact form to arrange a call-back.
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The recent news that an estranged daughter who had had no contact with her mother for 26 years is entitled to a third of her mother's estate, even though her mother had totally disinherited her from her Will, has raised the question of whether it's worth writing a Will if your wishes are to be ignored by the Courts.
Mrs Jackson, who died in 2004, left an estate worth £486,000 to three chosen charities. She completely excluded her only child, Mrs Ilott, so she inherited nothing. Mrs Ilott took the case to Court and in 2011 she was awarded £50,000 under the Inheritance (Provision for Family & Dependants) Act 1975. Mrs Ilott then appealed this decision on the basis that she was entitled to more money. The Court of Appeal decided that she was right and awarded Mrs Ilott £163,000.
The Inheritance Act 1975 allows several different classes of people, in this case a child, to make a claim against a deceased person's estate if they have not received reasonable financial provision. Even if the child has been estranged from their parents for a long period of time and lived independently of their parents, they can still make a claim under the Act. In this case the Court considered the size of the estate, the resources and needs of the charities and the needs and resources of the child.
So, this raises the question for many about why it's worth writing a Will in the first place. Although in England you are free to leave your assets to whoever you want, sometimes, as in this case, those wishes can be challenged. Taking proper legal advice at an early stage will ensure that as far as possible your wishes are carried out. Our member lawyers can advise you on all of your options so that you are fully informed about how best to proceed in any situation, whether you are giving instructions for a Will or looking to challenge the provisions of a Will.
Contact Oratto on 0845 3883765 to speak with an adviser or use our contact form to arrange a call-back.
