How to avoid making mincemeat of estate planning
A will that was hand-written on the back of two cardboard food packages has been confirmed as legally binding by the High Court.
In an unusual twist, Malcolm Chenery used a Young’s frozen fish box and a Mr Kipling mince pie box to set out his wishes, leaving his £180,000 estate — including a three-bedroom house, jewellery, and a pottery collection — to the charity Diabetes UK. Despite the unconventional medium and the two pieces of card not being physically connected, the court upheld the will.
Under English law, a will is valid if it complies with the Wills Act 1837, which requires it to be in writing, signed by the person making it, and witnessed by two independent individuals present at the same time.
While this case highlights that a will doesn’t have to follow a traditional format to stand in court, unconventional approaches often lead to unnecessary stress and costs for executors and beneficiaries. Even though the family in this instance supported the charitable donation, this case caused additional complications.
Simple preparation can avoid such confusion. One important step is to organise financial documents and to create a clear list of assets, which should be kept in a place known to the executors and kept up to date . Executors must obtain valuations for all your assets — whether property, crypto currency, premium bonds, or pottery collections like Mr Chenery’s. Providing account details in advance can save time and stress.
Delay in sending information about assets to HM Revenue and Customs following a death can have serious financial consequences. Executors are personally accountable for handling estates correctly, including paying inheritance tax (IHT) on time. IHT is due within six months of the month of death, with HMRC charging 7.5% interest after that time. Delays can result in penalties and mounting costs, which beneficiaries might expect executors to cover from their own funds.
Executors must also act within two years to claim some of the tax-free allowances for married couples or civil partners, who can combine allowances to pass up to £1 million tax-free. Missing this deadline can reduce the inheritance beneficiaries receive.
While the exemption for gifts between spouses is ‘absolute’ and does not have to be claimed, the transferred nil rate band does have to be claimed, and this is where the two year time limit applies.
It's helpful to think of estate planning as a gift to your loved ones - discussing your plans with family — whether they’re included or excluded — can help avoid disputes and ensure your legacy is handled smoothly. Attention to detail now can make a world of difference later.
Tips to make things simple for your executors
An executor is legally responsible for carrying out the instructions set out in a will. Executors may be family, friends or a professional, but they must make sure everything is done correctly at every stage, from collecting details of all the assets, reporting to HMRC, obtaining probate, through to distributing money and other assets to beneficiaries. Agreeing to the role and having the opportunity to discuss your wishes will help them prepare, together with some other simple steps:
- Draft a clear, valid will
Ensure your will complies with all legal requirements and reflects your wishes clearly. Anything that could lead to disputes should be checked and ideally discussed with those involved. Consider consulting a solicitor to ensure all bases are covered, including provisions for guardianship, specific bequests, and how you want to share your estate. Whatever the cost of having a will drawn up by a professional, it will be small when compared with the costs involved if the validity of a home-made will is questionable.
- Store your will securely
Keep your will in a safe but accessible place and inform your executors where it is stored. Options include a solicitor’s office, a bank’s safe deposit box, or a registered will storage service. Avoid storing it in a place that could be overlooked or difficult to access, such as a personal safe with an unknown combination.
- Review and update regularly
Life events — such as marriage, divorce, the birth of children, or a significant change in assets — can affect the validity or relevance of your will. Regularly reviewing your will ensures it remains aligned with your current wishes.
- Consider your digital assets
In today’s digital age, estate planning must include online accounts, digital assets, and even social media profiles. Leave instructions for accessing important accounts and consider appointing a digital executor if necessary.
- Plan for taxes
While the tax-free threshold for inheritance tax (IHT) is £325,000 in the UK, estates exceeding this may be liable for significant tax payments. Proper estate planning can help mitigate IHT liabilities, for instance, by using exemptions, gifts, or trusts effectively.
- Communicate with executors and beneficiaries
Discussing your plans with all involved reduces misunderstandings and surprises later. Executors should understand their responsibilities, and beneficiaries should be aware of your intentions to help manage expectations.
Web site content note:
This is not legal advice; it is intended to provide information of general interest about current legal issues.