In a recent BBC News Article, it was revealed that Scotland has the highest rate of people living alone in the UK. The National Records of Scotland consider that the main reason for this is the ageing population, with older people more likely to be living in a single person household.
If a person is single, or has no immediate family, what can be done to safeguard their assets on their death, particularly assets of sentimental value?
Making a Will
If a person dies without a Will, their assets will be distributed in accordance with the rules of intestacy. This can be a problem for those with no immediate family, as the rules of intestacy may not fully align with that person’s wishes. When a person has no traceable living relatives, the Crown will eventually take the assets in a process known as Bona Vacantia.
While deciding who should inherit in the absence of family may seem difficult to begin with, a Solicitor can help make the decision easier. Similarly those with existing Wills prepared several years (even decades) ago should ensure that their Wills are up to date and update them if necessary. Seeking expert legal advice will help you navigate these issues.
A common misconception is that a family member must be appointed to act as Executor a Will. On the contrary, in Scotland you can choose anyone over the age of sixteen to take on this role. A professional Executor, such as a Solicitor or Trust Company, is a good option if there are no other suitable individuals to appoint. Professional Executors are also a good option to act as a backup Executor, where an original Executor can no longer act due to their own death or incapacity.
Testators (i.e. those making Wills) have broad freedom to decide whom they wish to inherit and this does not have to be family members. Beneficiaries can include charities or companies. It is important to note though that a surviving spouse, child or civil partner may have a right to a share of an estate by virtue of their “Legal Rights” claims.
Objects of Value
A further consideration for those who live alone may be what will happen to objects of sentimental (or perhaps even national, or historic) value such as antiques or pieces of art which have been passed down through generations. Often, people will want these special items to pass to individuals or organisations who will appreciate their value and associated memories. However, many of us do not know how much these objects are worth. This can lead to issues about inheritance tax and the value of the estate. Hamish Wilson, a Senior Valuer in the Private Collections, Estates & Valuations department at Bonhams explains,
“The reality is, that markets move, and values of fine art and antiques change. As a result, people are often unaware of what their assets might be worth. One of the most beneficial things a person can do to aid their executors is to obtain a lifetime valuation of any antiques, fine art, or luxury goods within their estate. Having a value clearly set out can help an individual to make reasonable and informed decisions when drafting their Will, particularly when making any legacies. Furthermore, a value can aid any lifetime decisions about the asset such as gifting or inheritance tax planning.
People who live alone may be of particular risk as there is no one with them to verify items in the household. This is one reason why it is important to consult a specialist and a legal professional to ensure any descriptions in your Will accurately reflect the item and do not lead to confusion. Another useful idea is providing your executors with clear photos of the items in questions to avoid any doubt in future.
If you are living alone and think you may own an item of value, I would recommend that you get in touch with your local auction house to provide you with a valuation. The process is not as intimidating as people may think and quite affordable. Often, the journey can be quite enjoyable, and many are often pleasantly surprised by what they find!”
In summary, making a Will (and a Power of Attorney) is essential whether or not a person has immediate family to inherit their assets, to ensure that unintended persons do not inherit by default and to ensure that precious heirlooms are preserved and protected for the future. Having possessions professionally valued now can help make this process much easier, both for lifetime planning and for your Executors.
For advice on Wills, Powers of Attorney or Inheritance Tax Planning, contact any member of the Private Client team on 03330 430150.
