subject: Promises of gifts [print this page] Promises of gifts Promises of gifts
Have you ever promised someone they will inherit a property or other substantial asset when you die, or has your conduct led them to believe that they will do so?
If so, it is important you set it out in a Will to minimise the risk of an expensive and time consuming legal action on your death. The courts recently clarified how the law applies to promises made during someone's lifetime and whether they are actually valid when they die. Two cousins lived on a farm: Peter owned a farm and made a will leaving the farm to David who had worked on the farm for years without pay. Peter later revoked his Will. However, there had been an unspoken mutual understanding between the two that David would inherit the farm on Peter's death. Two years after Peter's death, the House of Lords decided David was legally entitled to keep the farm and the assets.
In today's culture, estates are rising in value, families are becoming more complicated in their structure and there is an increasing rise in the number of contested probates cases where an individual's Will is being disputed, or where someone is making a claim on a part of someone's estate. The risk of contested probates can be minimised when you make a Will.
However, it is important that when you make a Will you take into account what might seem unfair to a potential beneficiary and consider any promises you have made to potential beneficiaries otherwise you run the risk of legal action after your death. It is not unusual for close friends or relatives to be someone's carer, for example. In some cases, carers work without pay on the basis they will receive an inheritance from the individual concerned. If this is an unspoken' mutual understanding a successful claim against the individual's estate could be made in the future.
It is crucial to take expert legal advice in these types of circumstances. You should ensure you have a properly and fairly drafted Will and take into account the possibility of claims on your estate from individuals you chose not to provide for otherwise you run the risk that, on your death, there could be a bitter court battle that could cost your estate a lot of money.
For legal advice on probate as well as other legal issues such as will writing make sure you look online
