Recent high-profile cases illustrate the importance of estate planning, says probate and estate administration provider, Kings Court Trust.
Regardless of status or wealth, there are notable lessons that recent celebrity deaths and misfortunes have taught us about the importance of planning for our legacy and making sure that our affairs are in order.
Lesson 1: Leave a well-written Will and avoid intestacyIt is no secret that it is so important to leave an up-to-date Will with clear instructions on how you would like your estate to be dealt with when you pass away. This ensures that your estate is distributed in line with your wishes and your loved ones rightfully inherit your legacy.
Furthermore, a Will makes the process of handling your affairs, known as ‘estate administration’, easier for your loved ones and prevents unnecessary stress at an already difficult time.
What’s often less well understood is how your estate will be distributed if you do not create a Will. There are common misconceptions about who will inherit, especially regarding step-children and partners who are not married. A couple of recent high-profile examples illustrate the problems that can be caused if the right provisions aren’t in place.
In February 2020, TV and radio presenter Caroline Flack sadly took her own life at the age of 40, dying without a Will. Consequently, her estate had to be distributed in line with the intestacy rules of England & Wales. Flack was unmarried and did not have any children, so her surviving parents were next in line to inherit her estate.
At the end of last year, Flack’s parents confirmed that her estate was to be donated to “causes she was passionate about”. Flack was well known for her charitable work; but is this exactly how she would have wanted her estate to be administered?
In November 2020, the Argentinian football icon Diego Maradona passed away after suffering a heart attack. Due to the principle in Argentinian law of ‘forced heirs’, his children will likely receive equal shares of his estate, as he wasn’t married at the time of death. Maradona admitted to having eight children with six women over decades of relationships; other claims are outstanding.
With the likelihood of a protracted court battle, DNA tests and opportunistic paternity claims, Maradona’s is a more extreme case. But his complicated financial legacy is likely to lead to a long delay in the distribution of his estate to his rightful heirs.
Lesson 2: Create a lasting power of attorneyCreating a lasting power of attorney (LPA) is often not thought about until we get older or gradually become ill. Less than 1% of the adult UK population has an LPA, according to the Office of the Public Guardian (January 2021).
An LPA is a document that allows a person, known as the ‘donor’, to give one or more people, the ‘attorney(s)’, the legal authority to make decisions on their behalf. This would apply if the donor ever lacks the physical or mental capacity to make decisions for themself.
A high-profile case that hit the headlines last year highlights the importance of preparing an LPA sooner rather than later. Derek Draper, husband to Good Morning Britain presenter Kate Garraway, fell seriously ill after contracting COVID-19 in March 2020.
Kate has spoken publicly about their financial struggles as Derek did not have an LPA in place. As Derek’s name is on most of their assets, without an LPA, no one can deal with Derek’s affairs during his incapacity. Derek and Kate’s story truly highlights the importance of an LPA to protect against any unfortunate and unexpected circumstances.
The pandemic has created tragedy for tens of thousands of families, and is a reminder that no one knows what is around the corner. As these celebrity cases illustrate, getting the right advice, and making the right preparations, will make things so much easier for your loved ones.
Advice relating to writing a Will, or lasting powers of attorney, or estate administration services, involves referral to services that are separate and distinct to those offered by St. James's Place and which are not regulated by the Financial Conduct Authority.
Kings Court Trust is a probate and estate administration provider for St. James's Place.
As a Chartered Financial Planner and Fellow of the CII, I have satisfied rigorous criteria relating to professional qualifications and ethical good practice.
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