And whether this leads to mere consternation, or all the way up to legal contestation, the prospects of having any recourse to the solicitor or will-writer who drafted the will are minimal (not least because the testator has deceased).
Whatever your wealth, to ensure good advice, you need a STEP-qualified will-writer to walk through your unique situation and ensure you get the best advice. After that, it is your choice what you want to happen, and how your wishes get presented. Technology can also be a powerful weapon here.
FTA: Evidently, there's no silver bullet - it obviously requires a lot of time in planning - but what good rules of thumb are there for clients needing a starting point for intergenerational wealth planning?
BM: It is hard to generalise, as everyone’s situation is unique, but there is a general concept of “get your death planning done first, before you look at lifetime planning”. And if you want to protect your wealth beyond your own death, trusts are your best friend.
To give some real world examples:
- Trusts allow you to pass your assets to your children, and protect that wealth from them losing it in a divorce.
- Trusts allow you to pass your business on to your family, and their family.
- Trusts allow you to ensure your assets can be managed responsibly for the benefit of your family.
That said, trust law is extremely complex, and structuring trusts that do not accidentally trigger extra costs is an advanced science.
However, a well-crafted trust will protect all existing exemptions (including the Residential Nil Rate Band - something many professional quality trusts do not do, costing testator families up to 40 per cent of £175,000 or £70,000 in tax), will be flexible to changes in circumstances, and minimal effort and cost when there is nothing to do (which can be most of the time).
Professional trustees will also know to avoid accidentally triggering tax reporting, and will more generally help ensure that families are supported in their legal obligations.
