Towards the end of last year, you may have spotted a news story about whether or not a Will written on the packaging for Mr Kipling mince pies and Young’s frozen fish fillets was valid. The High Court ruled that it was valid, meaning that the charity Diabetes UK was able to inherit £180,000.
However, Helen Kidd (Partner and Head of our Charities and Third Sector team) and Lynsey Kerr (Partner in our Private Client team) explain that this is a cautionary tale about the pitfalls of improvised Wills and the consequences for families and charities.
Had the case gone the other way, the charity would have missed out on a legacy that the deceased and his family wanted it to have. Even with a positive outcome, the three years of legal proceedings needed to reach that point were tortuous and costly for the charity and the deceased's family.
Lessons for life – and beyond
The case happened in England, where the laws on Wills and succession differ from Scotland’s, but it still provides lessons on both sides of the border about the value of a properly drafted Will.
The problem in this highly technical case was not the use of food packets per se but whether two separate ‘documents’, only one of them witnessed, could be accepted as a single – and therefore valid -– Will for the purposes of probate (known as Confirmation in Scotland). But that’s far from being the only way that improvised or DIY Wills can create long-running issues for families and charities – below you’ll find just a taste of the issues.
DIY Wills: The pitfalls
- The requirements for a properly-drafted Will differ north and south of the border – if you follow the wrong rules (a common issue when using online Wills), it may not be valid.
- Even apparently minor issues with signatures or witnesses can invalidate a Will.
- Language that may seem clear in everyday life can be ambiguous or problematic in when it comes to the laws governing succession.
- Certain relatives can claim legal rights, as set out in law, which can change the distribution of the estate in terms of the Will and this needs to be discussed carefully with a Solicitor.
- Many people overlook the importance of making or updating a Will to reflect life changes like buying property with a partner, marrying or separating or having a baby.
The results of these slips can include costly court wrangles, the ‘wrong’ people claiming an inheritance, or partners being left in financial difficulties. Not to mention the expense and discord that can accompany those situations.
The charity angle
The other point flagged by this case is how important legacies are to charities of all sizes, especially in the current economic climate.
Legacies amount to over £3.4bn annually, about a sixth (16%) of all fundraised income for UK charities, according to the Charities Aid Foundation. As well as keeping charities afloat, these gifts offer inheritance tax planning opportunities for individuals and families.
However, as with Diabetes UK, the course of true generosity doesn’t always run smooth. Firstly, a legacy can be thwarted by the reasons above; secondly, there are additional issues specific to charities:
- A common problem is a mistake or ambiguity in the Will about which charity people want to support. For this reason, the charity’s registered number should always be included as well as its legal name.
- The charity may no longer exist (or may have restructured), or no longer be able to meet the legacy’s conditions (such as using it for a specific purpose).
Some basic precautions when making a Will can avoid these, such as checking OSCR’s register to confirm a charity’s registered number and how the charity may prefer to receive legacies. Preparing your will with a solicitor will help avoid any legal pitfalls and provide some flexibility in case your chosen charity restructures in future.
