The Need for Wills: Personal Comment and Practical Comparative Points25 May 2014 by Alia De Bellotte (Edited by Dr. L S Spedding)
Key Statistics
In the Twenty First Century, it seems even more important for one to have a will. However, statistics have proven that a lot of people do not actually make a will. Taken from unbiased.co.uk, statistics state that in the United Kingdom 6 out of 10 adults do not have a will, including 1 out of 3 over 50 year olds. The number of people without a will in the UK is at 29.5 million and rising. Between 18 and 34 year olds, a very high percentage – 84% – do not have a will and, quite importantly, 48% of married adults do not have a will. When looking at these statistics, I compared the position with the United States. From the findlaw.com website, the statistics are fairly similar to that of the United Kingdom. More than 60% of Americans do not have a will and fewer than 10% of 18 to 24 year olds have a will. It must be taken into consideration, however, that the population of the United States of America is far greater than that of the United Kingdom.
There is a need to be proactive in making a will, rather than waiting until much later in one’s lifetime to create one. Creating a will is not just merely a mundane action, but a vital responsibility for oneself and others. It is surprising therefore that 11% of people say it has never occurred to them to actually plan or write a will. Therefore, in considering my research, I aim to address what these statistics may actually reflect.
Accessibility
The first point I looked at is whether this is because of the accessibility to write a will. However, I have found that there are various ways to be able to have your will written. In the UK, there are do-it-yourself kits that can be picked up from retailers such as WH Smiths or online. I have found in my research overall the necessity to be slightly weary of DIY kits without some form of legal advice. This is because, even the slightest mistake in writing a will, may subsequently render the will invalid. However, there are Will Writing services available, which may be more cost effective than visiting a solicitor. However this may involve a risk of falling victim to someone inadequately qualified. Comparative understanding is helpful. In many countries, such as Germany or the USA, wills can be written informally and signed without a witness, therefore it is important to understand the local rules. In the UK, the seemingly most reliable, but perhaps the most expensive service, would be that of a solicitor. Needless to say, there are a many different ways available, formal and informal, to obtain advice to create a will, but above all they should be prepared with mindfulness to be responsible and achieve the objectives.
There does seem to be an emotional response for many when considering writing a will, which can cloud the clarity for many of the need for a will. Therefore I drew my attention to other reasons as to why people may not write a will:
So why do we need a will?
Having a will is an opportunity to do more than just leave your property and assets and holds much more value particularly after one’s passing.
It is clear therefore, that having a will is beneficial to not only person creating it, but also to the people that the will concerns. It may be more beneficial to have a will in certain countries, such as those less economically developed, where one may want any type of asset to be protected after their death. This may be because of the laws in place, or the constitutional system. In India, for example, inheritance of money is dependant on a variety of factors as each religious group has different laws. Therefore, the laws applicable may concern the laws of the deceased’s religion, or the codified law of the nation to which the deceased belonged to at the time of death.
It is most important that when considering whether to write a will, that it should be drafted responsibly with proper care, thought, communication and discussion between the parties to help maintain the necessary peace and order. Creating a will is an opportunity for reflection and may in itself be quite an emotional experience. But nonetheless, it is an opportunity to consider who is close to you, and how your money or assets will benefit them after you would die.
Risks and dangers of producing a will
One of the biggest factors in producing a will that may seem a disadvantage is that it may be construed as a way of showing how much one person may mean more than another, hence causing more disputes. It may create upset and concerns of unfairness. This is particularly if, for example, in the case of a family, one family member was to gain more out of the will financially than another. Examples of historic wills include: William Shakespeare (1564-1616) who left £150 to both of his daughters (more than £380,000 today) and gave his wife the pleasure of his second best bed. Another example is that of Jane Austen (1775-1817) who left £700 of her £800 estate to her sister Cassandra, but her brother Henry however, inherited only £50 (£3,600 today) and another £50 was given to Madame Bigoen who acted as a nurse to her family. In 2011, copper heiress Huguette Clarke died aged 104 leaving two wills which were executed six weeks apart in 2005. One will left all but $5 million of her estate to her family. The other will left her fortune to a newly created foundation for the arts and others, including her nurses, doctor and the lawyer who drafted the will. Finally the New York State Attorney General’s office combined to some extent both of the wills to benefit the family, the California Arts Foundation, the Corcoran Gallery in Washington DC and the legal fees. Similar battles have occurred elsewhere between individual beneficiaries and Foundations. By way of example, in 2013, the daughters of the former Maharaja of Faridkot Haringder Singh Brar finally won the battle for the £2.6 billion inheritance against the Merharwal Khewaji Trust.
However, the risks of creating a will certainly do not outweigh the risks of not creating a will. Not creating a will may lead to animosity, family disputes and even legal intervention, particularly if the death is unexpected. I have personal experience relating to the problems that emerge from a person not leaving a will and unexpectedly dying. The case itself has been going on for over 7 years now leading to an immense amount of stress on the parties, a feeling of nothing ever settling or put to rest and of course, a lot of money and time. In November 2013, when Paul Walker, celebrity philanthropist, died unexpectedly, problems had arisen concerning his $45 million estate. It left his family and other relations in a ‘fight’ over who would get what. This also shows the importance of creating a will if there are minors involved. The creation of a proper will would have saved the dispute over who would get what and given him the choice as to how his assets and money should have been handled.
People must be aware that such disputes may arise that can mean many lengthy delays in any distribution of the estate. It could take weeks, months or even years to sort out and, if there is any legal intervention required, this may take up a considerable amount of time and money.
Other uses of Finances
In modern times, it seems that more people are living their lives around money and valuable assets. Not just to pay for the general day to day activities such as bills and transport, but an actual collection of wealth, investments etc. So what are the options for your money? Some people, particularly celebrities, take on the roles of being philanthropists and donating large sums of wealth and finances to charitable causes and there is a need for these philanthropic efforts, often as part of their overall reputation activities as well as their commitment to society. International examples of such initiatives include:
When donating such money, whether personal or corporate, there is an element of accountability, communication and responsibility. These donations can be made for personal or even religious reasons and are often arrange as lifetime gifts or ongoing generosity. The European Commission defines corporate social responsibility (CSR) as ‘the responsibilities of enterprises for their impacts on society.’
Large corporations have a build up of funds that can go to worthwhile causes. In the UK the Charities Aid Foundation Charitable Trust is one way of doing this (for both private and company assets) and give the company assurance that the company assets are dealt with appropriately. Setting up a philanthropist charitable trust not only shows that the company are playing their part in doing good, but it also demonstrates their ‘commitment to corporate social responsibility and long term support of the charitable sector.’
In India in April 2014, one of the changes of the Indian Companies Act 2013, to impose compulsory corporate social responsibility obligations on Indian companies and foreign companies in India, came into effect. Companies above a certain threshold have to spend 2% of average profit of the previous three years on CSR activities. The previous absence of these rules led to corporations being able to pass off any spending as CSR activity. However, now there is a list of rules which define what constitutes CSR activity. These include: enhancement and rural development projects, promoting preventive healthcare and sanitation and measures for benefit of armed forces, veterans, war widows and their developments.
While the future of corporate responsibility is somewhat uncertain one may consider that the trend is in favour of the nudges in this direction. There are an increasing number of companies that are becoming involved in donating money. The question is whether it will be something that companies will have to get involved in to encourage social responsibility and to demonstrate a sound reputation. In the United States, generally corporate social responsibility plays a permanent part in 70% of corporate agendas, for example American Express. Though corporate social responsibility is not about just giving money, it is certainly a start when considering what to do with any excess available funds.
According to an interview between Curtis Jackson and Forbes on why philanthropy should be an important part of one’s career, he answered that ‘According to the World Bank numbers, contributing 1% of business to charitable organizations could alleviate extreme poverty around the world’. Therefore, especially with regards to private donations, more people should think about using their monetary success to make a difference if they cannot think of another use for their money.
The future of writing wills
From the current statistics, it seems that more, and not less, people would consider not making a will. The statistics also show that, although more people have concerns about their money and making money, they think about the provisions after death less. I believe this is because awareness is very minimal. Perhaps, upon suggestion and debate, it should be made compulsory for people at a certain age to have to write a will and they should be able to create one at either a discounted rate or by the creation government service to aid in this. In further articles, I intend to consider comparative jurisdictions and cite practical examples with this in mind.
Key Statistics
In the Twenty First Century, it seems even more important for one to have a will. However, statistics have proven that a lot of people do not actually make a will. Taken from unbiased.co.uk, statistics state that in the United Kingdom 6 out of 10 adults do not have a will, including 1 out of 3 over 50 year olds. The number of people without a will in the UK is at 29.5 million and rising. Between 18 and 34 year olds, a very high percentage – 84% – do not have a will and, quite importantly, 48% of married adults do not have a will. When looking at these statistics, I compared the position with the United States. From the findlaw.com website, the statistics are fairly similar to that of the United Kingdom. More than 60% of Americans do not have a will and fewer than 10% of 18 to 24 year olds have a will. It must be taken into consideration, however, that the population of the United States of America is far greater than that of the United Kingdom.
There is a need to be proactive in making a will, rather than waiting until much later in one’s lifetime to create one. Creating a will is not just merely a mundane action, but a vital responsibility for oneself and others. It is surprising therefore that 11% of people say it has never occurred to them to actually plan or write a will. Therefore, in considering my research, I aim to address what these statistics may actually reflect.
Accessibility
The first point I looked at is whether this is because of the accessibility to write a will. However, I have found that there are various ways to be able to have your will written. In the UK, there are do-it-yourself kits that can be picked up from retailers such as WH Smiths or online. I have found in my research overall the necessity to be slightly weary of DIY kits without some form of legal advice. This is because, even the slightest mistake in writing a will, may subsequently render the will invalid. However, there are Will Writing services available, which may be more cost effective than visiting a solicitor. However this may involve a risk of falling victim to someone inadequately qualified. Comparative understanding is helpful. In many countries, such as Germany or the USA, wills can be written informally and signed without a witness, therefore it is important to understand the local rules. In the UK, the seemingly most reliable, but perhaps the most expensive service, would be that of a solicitor. Needless to say, there are a many different ways available, formal and informal, to obtain advice to create a will, but above all they should be prepared with mindfulness to be responsible and achieve the objectives.
There does seem to be an emotional response for many when considering writing a will, which can cloud the clarity for many of the need for a will. Therefore I drew my attention to other reasons as to why people may not write a will:
- Firstly, statistics state that more than 10% of people without a will believe that their assets will go to the right people, assuming to mean their next of kin or children or parents, automatically when they die.
- There is also the presumption that DIY kits are not good enough, however they do not have the funds to go to a solicitor: this is an expense that they are often concerned about.
- After further research, I also found that some people plan to write wills when they are older in age. This is probably because people are under the impression that if they do not have a considerable amount of money or assets, then writing a will is not worth it.
So why do we need a will?
Having a will is an opportunity to do more than just leave your property and assets and holds much more value particularly after one’s passing.
- The first reason, as would spring to most people’s minds, is to leave any money or other assets properly, to the people that you want to.
- Secondly, it is of particular importance if you have children under 18 years old to make sure they are properly protected in case of the worst.
- Thirdly, it is also a method of letting your loved ones know about medical care treatment. For example, whether you want to be resuscitated, and other care choices that you may be unable to make for yourself should your health deteriorate, there are ways to be proactive
- Due to all of the technological advances, particularly in the social media world, many people also can now have in their will how they want their social media sites to be dealt with, for example the passwords and whether they want their websites such as facebook or twitter to still remain live, or the account deleted.
- Not only that, but a will can be an opportunity to leave after death instructions such as funeral arrangements.
- Finally, having a will reduces the chance of family arguments and the complications that may stem from not having a will. The intestacy rules may not reflect one’s wishes at all and possible beneficiaries may be hard to trace so that the Crown or State may ultimately benefit.
It is clear therefore, that having a will is beneficial to not only person creating it, but also to the people that the will concerns. It may be more beneficial to have a will in certain countries, such as those less economically developed, where one may want any type of asset to be protected after their death. This may be because of the laws in place, or the constitutional system. In India, for example, inheritance of money is dependant on a variety of factors as each religious group has different laws. Therefore, the laws applicable may concern the laws of the deceased’s religion, or the codified law of the nation to which the deceased belonged to at the time of death.
It is most important that when considering whether to write a will, that it should be drafted responsibly with proper care, thought, communication and discussion between the parties to help maintain the necessary peace and order. Creating a will is an opportunity for reflection and may in itself be quite an emotional experience. But nonetheless, it is an opportunity to consider who is close to you, and how your money or assets will benefit them after you would die.
Risks and dangers of producing a will
One of the biggest factors in producing a will that may seem a disadvantage is that it may be construed as a way of showing how much one person may mean more than another, hence causing more disputes. It may create upset and concerns of unfairness. This is particularly if, for example, in the case of a family, one family member was to gain more out of the will financially than another. Examples of historic wills include: William Shakespeare (1564-1616) who left £150 to both of his daughters (more than £380,000 today) and gave his wife the pleasure of his second best bed. Another example is that of Jane Austen (1775-1817) who left £700 of her £800 estate to her sister Cassandra, but her brother Henry however, inherited only £50 (£3,600 today) and another £50 was given to Madame Bigoen who acted as a nurse to her family. In 2011, copper heiress Huguette Clarke died aged 104 leaving two wills which were executed six weeks apart in 2005. One will left all but $5 million of her estate to her family. The other will left her fortune to a newly created foundation for the arts and others, including her nurses, doctor and the lawyer who drafted the will. Finally the New York State Attorney General’s office combined to some extent both of the wills to benefit the family, the California Arts Foundation, the Corcoran Gallery in Washington DC and the legal fees. Similar battles have occurred elsewhere between individual beneficiaries and Foundations. By way of example, in 2013, the daughters of the former Maharaja of Faridkot Haringder Singh Brar finally won the battle for the £2.6 billion inheritance against the Merharwal Khewaji Trust.
However, the risks of creating a will certainly do not outweigh the risks of not creating a will. Not creating a will may lead to animosity, family disputes and even legal intervention, particularly if the death is unexpected. I have personal experience relating to the problems that emerge from a person not leaving a will and unexpectedly dying. The case itself has been going on for over 7 years now leading to an immense amount of stress on the parties, a feeling of nothing ever settling or put to rest and of course, a lot of money and time. In November 2013, when Paul Walker, celebrity philanthropist, died unexpectedly, problems had arisen concerning his $45 million estate. It left his family and other relations in a ‘fight’ over who would get what. This also shows the importance of creating a will if there are minors involved. The creation of a proper will would have saved the dispute over who would get what and given him the choice as to how his assets and money should have been handled.
People must be aware that such disputes may arise that can mean many lengthy delays in any distribution of the estate. It could take weeks, months or even years to sort out and, if there is any legal intervention required, this may take up a considerable amount of time and money.
Other uses of Finances
In modern times, it seems that more people are living their lives around money and valuable assets. Not just to pay for the general day to day activities such as bills and transport, but an actual collection of wealth, investments etc. So what are the options for your money? Some people, particularly celebrities, take on the roles of being philanthropists and donating large sums of wealth and finances to charitable causes and there is a need for these philanthropic efforts, often as part of their overall reputation activities as well as their commitment to society. International examples of such initiatives include:
- Shiv Nadar, Chairman of HCL group, donated Rs 3,000 crore to educational initiatives and expansion programmes to benefit 15,000 students across India.
- Mark Zuckerberg donated $498.8mil to charity.
- Wipro chief, Azim Premji, donated Rs 8000 crore to charity between 2012 and 2013.
When donating such money, whether personal or corporate, there is an element of accountability, communication and responsibility. These donations can be made for personal or even religious reasons and are often arrange as lifetime gifts or ongoing generosity. The European Commission defines corporate social responsibility (CSR) as ‘the responsibilities of enterprises for their impacts on society.’
Large corporations have a build up of funds that can go to worthwhile causes. In the UK the Charities Aid Foundation Charitable Trust is one way of doing this (for both private and company assets) and give the company assurance that the company assets are dealt with appropriately. Setting up a philanthropist charitable trust not only shows that the company are playing their part in doing good, but it also demonstrates their ‘commitment to corporate social responsibility and long term support of the charitable sector.’
In India in April 2014, one of the changes of the Indian Companies Act 2013, to impose compulsory corporate social responsibility obligations on Indian companies and foreign companies in India, came into effect. Companies above a certain threshold have to spend 2% of average profit of the previous three years on CSR activities. The previous absence of these rules led to corporations being able to pass off any spending as CSR activity. However, now there is a list of rules which define what constitutes CSR activity. These include: enhancement and rural development projects, promoting preventive healthcare and sanitation and measures for benefit of armed forces, veterans, war widows and their developments.
While the future of corporate responsibility is somewhat uncertain one may consider that the trend is in favour of the nudges in this direction. There are an increasing number of companies that are becoming involved in donating money. The question is whether it will be something that companies will have to get involved in to encourage social responsibility and to demonstrate a sound reputation. In the United States, generally corporate social responsibility plays a permanent part in 70% of corporate agendas, for example American Express. Though corporate social responsibility is not about just giving money, it is certainly a start when considering what to do with any excess available funds.
According to an interview between Curtis Jackson and Forbes on why philanthropy should be an important part of one’s career, he answered that ‘According to the World Bank numbers, contributing 1% of business to charitable organizations could alleviate extreme poverty around the world’. Therefore, especially with regards to private donations, more people should think about using their monetary success to make a difference if they cannot think of another use for their money.
The future of writing wills
From the current statistics, it seems that more, and not less, people would consider not making a will. The statistics also show that, although more people have concerns about their money and making money, they think about the provisions after death less. I believe this is because awareness is very minimal. Perhaps, upon suggestion and debate, it should be made compulsory for people at a certain age to have to write a will and they should be able to create one at either a discounted rate or by the creation government service to aid in this. In further articles, I intend to consider comparative jurisdictions and cite practical examples with this in mind.