An article in the Sunday Times on 30th January highlighted some of the problems that can arise with gifts or loans between family members and buying a property.

In the particular case discussed in the article, a couple married and the husband’s father lent his son £250,000 as a deposit for the couple to purchase a property.

The couple bought the property but tragically, the husband died young and unexpectedly.  His father then requested the loan to be repaid and it transpired that the widow had never been aware that what she thought of as a gift to herself and her late husband was in actual fact a loan and had to be repaid.

Whilst this case is undoubtedly very sad and, in some ways, specific on its facts, it does highlight some of the risks involved in financial arrangements within families, the importance of openness between all parties and ensuring that all documentation is drawn up and available.

For example, parents lending money or gifting money will want to have this recorded and could well be concerned about potential divorces in the future.  Equally those receiving money need to think about things like life assurance and their own wills and possible pre- or post-nuptial agreements to ensure that they have the legal framework in place to cope with unexpected problems that can sadly arise.

Colman Coyle has considerable experience in advising in relation to life time gifts and the purchase of property as well as the preparation of wills and related areas and if you would like to discuss the issues raised here, please contact Patrick Green on +44 (0)20 7354 3000 or patrick.green@colmancoyle.com.

Patrick Green

Senior Associate

An article in the Sunday Times on 3rd October highlighted how the increasing variety in family structures is a factor leading to increased litigation following a death of a family member.

The article picked up on some high profile disputes and mentioned that the number of cases has probably risen by around 50% in just a couple of years. However, the full extent of this issue is harder to gauge as the vast majority of cases never reach the court, but it is probably fair to say that there are numerous disputes of this type every year.

Often, people face a dilemma as to how they may benefit their spouse or partner on their death but also make provision for their own children, step-children, and indeed other relatives.  This dilemma is often at the heart of the problem but probably the best advice, is that doing nothing and hoping the issue will resolve itself is not likely to help matters.

The key to avoiding, or at least minimising, these issues lie in having a properly drawn up will which is flexible enough to reflect the interests of different family members. In particularly difficult or complicated family situations, leaving guidance or a letter of explanation as to why things were done in a certain way can often be a great help, as can raising issues during one’s lifetime.

Whilst people are free to leave their estate on their death as they wish, there is also legislation which allows certain categories of potential beneficiaries such as spouses, children, and others to make a claim against the deceased’s estate on the grounds that reasonable financial provision has not been made for them.  Such a claim is not guaranteed to succeed but it is something to bear in mind when drawing up your will, as the costs of a disputed will or inheritance can be considerable.

Colman Coyle has considerable experience in advising in relation to the preparation of wills, and estate planning, as well as advising family members after a death, and if you would like to discuss the issues raised here, please contact Patrick Green on +44 (0)20 7354 3000 or patrick.green@colmancoyle.com.

Patrick Green

Senior Associate

The Metro newspaper published an interesting and helpful article last Monday regarding the probate process, which included some useful advice and tips designed to make what can be a difficult and stressful process easier.

One of the key points made was the need for those dealing with a loved one’s estate to organise what can sometimes be a considerable amount of paperwork, so as to make the task easier. One good way of approaching this is for everyone to have a properly drawn up will in place and where necessary, leave details of assets and known liabilities so that the family have a good starting point.

Another important area to think about is lifetime gifts and what if any have been made.  These can have a considerable impact on the tax position on someone’s death and keeping accurate records during your lifetime can be extremely helpful both in terms of your own lifetime inheritance tax planning and helping those dealing with your estate on your death.

It is also important to bear in mind the inheritance tax position and the reliefs and exemptions that are available and which can save a family considerable sums. It is possible to carry forward a deceased spouse or civil partner’s unused inheritance tax allowances but in order to make the claim, a copy of their will would be required to support a claim.  Therefore, it is always sensible to keep these documents, even if the spouse or civil partner died many years ago.

It is sensible to take advice early once someone dies, to ensure that the administration starts in an orderly way and there is a clear direction and understanding of the probate process and tax position, which can be complicated.

Colman Coyle has considerable experience in advising in relation to the preparation of wills, lifetime tax planning and the administration of estates and if you would like to discuss the issues raised here, please contact Patrick Green on +44 (0)20 7354 3000 or patrick.green@colmancoyle.com.

Patrick Green

Senior Associate