Why low-cost Wills can be high risk

 

 

A woman is seeking compensation from a large high street Bank (“The Bank”) following services provided by its Will-writing division.

 

In 2007 Ebenezer Aregbesola instructed the unregulated Will-writing arm of The Bank to prepare a Will on his behalf dealing with his various assets including an interest he held in a home in London.  The Bank prepared the Will for which they charged just £90.

 

The interest that Ebenezer held in the London home was a half interest in the property which he owned with his wife.  It was his intention to leave that half interest to his daughter from a previous marriage, Tinuola Aregbesola.

 

The Will was written to make provision for this gift but the title to the property was never checked.

 

The half interest Ebenezer held in the property was actually held with his wife as 'joint tenants' which means that the interest automatically passes by survivorship to the other joint owner or owners.  In this case the property did not therefore pass under the terms of the Will but instead automatically to Ebenezer's surviving wife.

 

In order to properly give effect to Ebenezer’s wishes the joint tenancy should have been severed at the time the Will was entered into to ensure that the joint owners held their interest as 'tenants in common' meaning that the interest, instead of passing by survivorship, would pass under the terms of Ebenezer’s Will.

 

This is a relatively routine check and application and one which a qualified lawyer would review at the same time as a Client enters into their Will.

 

As a result of Ebenezer's death in 2014 the property passed to his surviving spouse and his daughter was left without the intended interest in the property.  As a result, she has been forced to take legal action against The Bank to seek compensation.

 

It is clear to see that it is important to have properly qualified and regulated people dealing with your affairs, particularly where the values and stakes can be so high.

 

If you want to get your affairs in order, contact a member of our Tax, Trusts & Estates Team.