This Client Situation
A client approached us following the recent passing of their father. While navigating their bereavement and beginning the estate administration process, the family reviewed the late father’s will to understand his final wishes.
The Challenge
It quickly transpired that the father’s will was very old and heavily outdated.
Because it was drafted many years ago, it was not robust enough to offer sufficient protection for the modern needs of the beneficiaries.
The will directed the estate to be distributed as outright gifts to the children, leaving their inheritances highly vulnerable to external threats such as future divorce settlements, bankruptcy, or creditor claims.
What We Did
Retrospectively amended the vulnerabilities in the outdated will and secured the family’s wealth, by applying a post-death planning strategy:
- Assessed the Vulnerabilities: We reviewed the original will and identified exactly where the children’s inheritances were left legally and financially exposed.
- Advised on a Deed of Variation: We recommended executing a Deed of Variation, a powerful legal tool that allows beneficiaries to mutually agree to alter the distribution of an estate after someone has passed away (provided it is done within two years of the death).
- Established Protective Trusts: We used the Deed of Variation to redirect the flow of the assets. Instead of the children receiving outright inheritances, the funds were directed into individual, tailor-made trusts for each child.
The Outcome
The family was able to successfully modernise their late father’s estate plan even after his passing.
By utilising the trust structures, each child can now take full control over their respective inheritances, managing the assets as they see fit.
Most importantly, they are safe in the knowledge that their inherited wealth is robustly ring-fenced and permanently protected from any external threats.