A Digital Death

The internet has grown fast over the past two decades – nearly as fast as those pesky Pokémon pop upand unsurprisingly the law has struggled to keep pace with all the challenges this creates.

In the pre-internet age, it was easy for people to leave their collection of progressive rock albums to their nearest and dearest – those vinyl discs had a physical presence and could be listed in wills under personal possessions. But now – well, it’s complicated.

Remember back in 2012 the stories reporting that Bruce Willis was preparing to sue Apple over the right to leave his iTunes collection to his daughters? Okay that turned out to be untrue but it does highlight the problem. Buying electronic media doesn’t give you the same rights as buying tangible assets – most digital providers are only selling you a lifetime licence to use those files. And when your lifetime comes to an end, that’s that.

Of course one way round the problem is simply to give those close to you the log-ins and passwords to your social media accounts. And the terms and conditions set out by some digital companies allow a film library or play list to be accessed by several separate devices through the same password. Or you can talk to your will writing professional about listing those passwords in your will with instructions on who to give them to. There are also companies like www.passwordbox.com that will store passwords in a ‘Legacy Locker’ for a nominated ‘digital heir’ should the worst happen.

Facebook responded to the confusion by, a couple of years ago, launching a service that memorialises the account of a deceased person so, if a family member alerts the company to someone’s passing the account will be locked and the strap-line ‘Remembering’ added to the person’s profile. Also, if you nominate a ‘Legacy Contact’ with Facebook that person will have access to your account and be able to download all your pictures and posts should you die.

But as far as Pokémon goes its bad news – the service agreement that you signed when downloading the game granted you a ‘limited non-exclusive, non-transferable, non-sub-licensable license’ meaning that you can’t pass your captures on to anyone. So, sadly, when you go to the grave, your Pokémon go with you.

Increase in Probate Fees

With all the news surrounding Brexit you may have not read that the government is proposing a new tiered system of probate fees in England and Wales, based on the value of the deceased’s estate, rather than the current flat fee of £215.

Presently an application fee of £215 is made payable to HM Courts and Tribunals Service on all estates over £5,000.

Under new rules proposed by the government, the system of probate fees would change, to one based on the value of the deceased’s estate. In Scotland, the equivalent Confirmation process continues with a flat rate fee for eligible estates (currently £225).

Estates worth more than £50,000 will face probate fees which rise as the value of the estate increases.

I/We believe this is an unfair form of tax for ordinary families.  With the increase in house prices many estates will now be subject to the proposed increase in fees. The death of a loved one can be an expensive process as it is, with funeral costs to pay upfront prior to the estate being distributed. For families to have to pay this additional fee adds to their burden, both emotionally and financially. I/we would call for the Government to rethink these proposed probate fee increases.

To find out more about the increase in probate fees, and what inheritance tax your beneficiaries may be liable for, please contact us.

When all around are losing their heads…

Whether you were for “out” or for “in”, the vote for Brexit has certainly stirred up a torrent of uncertainty in the world.  Not only has Britain become divided and Europe shocked, even the South Korean Government and their stock exchange held emergency discussions on how to respond to our decision to leave the European Union!

Right now everything seems uncertain and so with stock markets falling, the political class in turmoil and unable to help and significant changes occurring what certainties can we hold on to?

Well its unlikely to surprise you that as will writers and estate planners we are going to say that the only certainty is life is sadly death, however that is the reality we all face.

Whether the markets are up or down or whoever is the Prime Minister there is no excuse for not properly considering what should happen when you die and leaving your relatives unable to know your wishes or potentially not receiving what you might want them to receive.

Whilst you might be putting off buying a new car or changing jobs don’t put off making a will.  Life is short and the consequences of not addressing this can range from making things difficult for your relatives right the way through to the wrong people inheriting your estate.

Please contact us if you would like to talk through your options and we can help you create some certainty in a changing world.

The importance of reviewing your will

Once you have written your will it should be reviewed in the following circumstances:

– if you receive a large sum of cash

– if a close family member dies

– upon marriage

– upon retirement

– the birth of a child

– following a divorce

See our piece on the importance of writing a will

The importance of considering your business in your will

If you own a business, careful consideration should be taken to ensure that your business is adequately provided for should you become seriously ill or die. It is important to draw up a Lasting Power of Attorney whereby you appoint someone to deal with your company’s interests should you lack the capacity to do so, and ensure that you prepare sound wills covering all the pertinent points relating to your business.

Important items for business partners to consider when writing their wills are:

Would your business be able to continue whilst one or more director’s estates go through the probate process?

Would any relevant remaining directors be happy to run the business with a deceased director’s next of kin?

What would be the process for buying a business partner or director’s family out?

Do your wills make the most of the tax breaks available to the business?