What to do if you have mirror Wills and one spouse dies

Q:      My wealthy neighbours, both in their nineties, made Wills years ago, leaving everything to each other and naming each other as sole executors. The husband had no children, but the wife had a granddaughter. The wife died recently, so her husband inherited everything and her granddaughter got nothing.

The husband says he is going to give his step granddaughter some money, but I have tried to explain this could cause tax implications if it’s more than £3,000, and instead he should make a new Will naming her as a beneficiary. Also, if he dies without making a new Will, everything he leaves could go to his wealthy brother. Can you please confirm this?

A:       You are correct. As his sole beneficiary is no longer alive, your neighbour’s current Will is obsolete, unless he had a back-up provision to cover the eventuality of his wife predeceasing him. if not, then without making a new Will he would die intestate, and under intestacy rules his estate would pass to his next of kin, namely his brother. If he has more than one sibling, the estate would be split equally between them. He will also need to appoint a new executor(s). If one of his siblings dies or has died, the deceased sibling’s share would pass in equal shares to their children. “Children” includes legally adopted children as well as offspring but not step-children or foster children.

With regard to gifting money now, everyone is entitled to a gift tax exemption of £3,000 per year. Thinking you can get away with gifting more than that is unadvisable as the executors of a Will are legally responsible for disclosing gifts made by the deceased in the final seven years prior to their death. You are, however, allowed to make any number of small gifts worth up to £250 per year, to any number of people, on top of the £3,000.

Your neighbour should see a solicitor as soon as possible to draw up a new Will that fully reflects his wishes for estate distribution.

This question has been answered by Victoria Wilson, a Partner with GHP Legal.  If you would like to speak to someone about this or any other legal matter, please visit our website www.ghplegal.com and use the contact us form, or call us on: Wrexham 01978 291456, Llangollen 01978 860313, Oswestry 01691 659194 

Victoria Wilson.