Lessons from Liam Payne’s Passing: Why Estate Planning Matters The tragic passing of Liam Payne in October 2024 has brought to light significant issues surrounding estate planning and inheritance, particularly concerning his young son. At just 31 years old, Payne died without a will, leaving behind an estimated £28.5 million estate. What Happens When There’s No Will? As reported in the press as per UK intestacy rules, the estate is to pass entirely to his child, meaning that a partner and other family members do not inherit anything from the estate. Although Liam may have wanted the majority of his estate to pass to his children it may be that he wanted to leave some gifts to his other family members and partner. As Liam was unmarried, his partner has no legal entitlement to any part of his estate. Unmarried partners are not protected in the same way as married couples regardless of the length of the relationship. This is especially important to bear in mind where unmarried partners are living together and depend on each other financially. Visit our Wills, Probate and Estate Planning page for more information on intestacy and relationship rights. Estate Planning with Minor Children Without a will, the distribution of Payne’s assets is determined by the law, which may not align with personal wishes. The absence of a Will can lead to complications, especially when minor children are involved. The press have reported that the child’s mother, has been appointed as the administrator of the estate, working alongside a solicitor. However, without a will, there is no clear guidance on how Liam intended his assets to be managed or distributed i.e. at what point would Liam have wanted the child’s mother and the appointed solicitor to consider distributing funds to the child prior to him ascertaining the age of 18? With a Will in place, you can specify when you would like funds from your estate to be distributed to your minor children/dependents and for what reasons. This would provide specific guidance to those looking after your estate on behalf of your minor beneficiaries. Losing a parent is a profound experience, and the added complexity of managing a substantial inheritance can be overwhelming. Under the rules of intestacy, a minor beneficiary will inherit funds from an estate once they reach age 18. With large estates, it may be that children will find it difficult at age 18 to manage such a substantial amount. With a Will in place, it can specify for children to inherit at an older age, for example at age 21 or 25. Why Everyone Needs a Will Liam Payne’s situation underscores the critical importance of having a will, particularly for individuals with dependents. A well-drafted will ensures that your wishes are honoured and can provide clear instructions for the management and distribution of assets. A Will also allows you to: Appoint legal guardians for your children – this allows parents to choose people that they feel are appropriate to look after their children if they die unexpectedly i.e. a guardian will choose where the child is to live, where they are to be educated etc. Set out how the funds within your estate should be managed for their benefit i.e. to purchase a car, driving lessons, put a deposit on a house, pay for university/ higher education costs. Make provision for family members/unmarried partners/friends. If you are unmarried it may be your wish for your home and personal belongings to pass to your unmarried partner before passing to your children (if you have children together). Ensures that your wishes are met. Financial experts often recommend that individuals with significant assets or dependents consult with estate planning professionals to create a comprehensive plan that addresses their specific circumstances. This proactive approach can provide peace of mind and protect loved ones from unnecessary legal and emotional challenges. Let Browell Smith & Co Help You Protect What Matters Although the thought of dying young is unsettling, Liam’s death has showed us that the worst can indeed happen and in order to ensure that your loved ones are protected, estate planning is essential. While the circumstances surrounding his passing are tragic, they highlight the need for individuals to take proactive steps in ensuring that their wishes are clearly documented. For those with dependents, having a Will is not just a legal formality but a crucial step in safeguarding their future and well-being. If you don’t have a Will or you haven’t reviewed your Will for some time, please contact our friendly probate team on 0191 250 3200 or email us at probate@browells.co.uk. Our probate team will take the time to guide you through the process and advise you about how you can best protect your loved ones.
Why Unmarried Couples Should Consider Making a Will and Lasting Powers of Attorney Understanding the Legal Risks of Cohabitation Without Marriage The proportion of couples living together – or cohabiting – has been steadily increasing since 2011. In fact, almost a quarter of adults in the UK now live with their partner but remain unmarried. This presents some challenges in respect of the law which can be unhurried in its reaction to the realities of modern life. How Marriage Offers Legal Protection Despite often being seen as an archaic and outdated institution, marriage confers some not insignificant legal benefits. For example, a married person is entitled to a ‘statutory legacy’ of £322,000 from the estate of their late spouse if they die intestate (without a Will). Furthermore, there are substantial tax benefits to being married – in terms of Inheritance Tax, marriage may confer up to an additional £500,000 in tax reliefWhilst perhaps unromantic, these practical benefits of marriage cannot be understated. The Risks for Unmarried Couples Without a Will It must be said that the law is not kind to unmarried couples who die without leaving a Will. The “rules of intestacy” which govern the administration of an estate where a person dies without leaving a will make no provision for a cohabitee, regardless of how long they have lived together or if they have children. Any cohabitee would need to make a claim under the Inheritance (Provision for Family and Dependents) Act 1975 in order to receive anything at all. At a time of tragedy and emotional turmoil, litigation is quite simply the last thing that you would want your loved ones to be forced into and, yet, it may be necessary for their ongoing financial security. How Making a Will Can Protect Your Partner Until such a time as the law catches up to modernity, this can be easily avoided by making a Will which benefits your partner, ensuring that your wishes are carried out even after you are gone. At Browell Smith & Co., our experts are able to meet with you to determine your needs and then prepare the necessary paperwork to give you peace of mind about your financial future. Don’t Overlook Lasting Powers of Attorney (LPAs) Couples who live together but remain unmarried should also consider making Lasting Powers of Attorney (LPAs). These documents allow you to appoint people to act as your attorneys, giving them the requisite legal authority to make decisions in respect of your finances or your health and care if you are unable to do so yourself. This may be as a result of illness or an accident. Speak to ourWills & Probate Solicitors By appointing a solicitor you are able to ensure that your wishes in respect of your finances or your health and care are carried out when you are no longer able to decide for yourself. Without creating LPAs, your partner may be unable to access money held in your sole name, or to be involved in decisions during a medical emergency or long-term care planning. Making LPAs can be tricky but, at Browell Smith & Co., we can help you to smoothly navigate the complex form-filling and registration process. Call us on 0191 691 3417 or request a callback to speak with one of our friendly, expert solicitors today.
What are the risk of using artificial intelligence when writing a will? New research reveals that 72% of UK adults aged between 30 and 34 would consider using AI to update their will. The research, conducted by Censuswide on behalf of The Association of Lifetime Lawyers, found that only half (52%) of wills in the UK have been drafted by a solicitor. This raises concerns that many people may be putting their estate and loved ones at risk due to errors, ambiguous wording, or failure to meet legal requirements. AI and Will Writing As the use of AI continues to rise, experts are stressing that when it comes to wills, it’s vital to have professional legal oversight. It is very important to understand that using AI to update or create your will could have devastating consequences for your loved ones. The Risks of AI-Generated Wills Although the appeal of AI-generated wills is understandable, particularly among younger generations, who may see it as an easy solution, this is quite likely deceptive. A will is one of the most important legal documents you will ever create. Relying on AI to draft or update it without proper legal guidance could result in errors that make a will invalid or lead to unintended consequences, such as disputes between family members or tax implications being overlooked. What Happens When AI Writes a Will? The Association of Lifetime Lawyers has tested various AI platforms including ChatGPT, DeepSeek and Microsoft Copilot to create a will. While they can produce documents that look like a will and meet the most basic requirements, there are confusing structures, poor grasp of legal requirements, lack of understanding of the knock-on effect of key decisions, lack of personalisation and inaccurate wording. Why Legal Expertise Matters AI simply cannot understand the complexities of human relationships, nor can it offer personalised advice based on a person’s unique circumstances. As a result, people may unknowingly put their loved ones at risk by relying on technology to handle such an important document. It’s vital that people seek advice from an experienced legal professional, who can guide them based on your unique situation to ensure your wishes are carried out and help minimise inheritance tax where possible. For expert advice on creating a will that accurately reflects your wishes, please visit www.browells.co.uk or call our wills team on 0191 691 3417.