Step-sisters’ inheritance hangs on whose parent died first

Which of two step-sisters receives a £300,000 inheritance rests on a judge’s opinion of whose parent died first, in a cautionary tale for parents yet to draft a Will.

In October 2016, John Scarle, 79, and Ann Scarle, 69, both died from hypothermia at their home in Leigh-on-Sea, Essex. Their bodies were discovered when police were called on October 11^th. The last time anyone had seen either was when a neighbour spoke to Mr. Scarle on October 3^rd or 4^th.

They were each survived by a child from a previous marriage and left behind a £300,000 property.

Unfortunately, the couple had not drafted Wills, leaving the decision on which daughter should inherit the house to the rules of intestacy.

The Scarles jointly owned the home, meaning if one had died first, the surviving partner would have inherited the whole house. Once they passed on, their child would have been the automatic beneficiary to their estate.

However, with uncertainty over the circumstances of the Scarles’ deaths, the step-sisters have asked a judge to rule on whose parent died first – and therefore who gets the house.

Scarle vs. Scarle

As reported in the Evening Standard, Mr. Scarle’s daughter, Anna Winter, believes Mrs. Scarle died first – based on the condition of her body when the police arrived on the scene.

This would mean that Mr. Scarle briefly inherited his wife’s share of their home, taking ownership of the whole property, and making his daughter the sole beneficiary.

However, Mrs. Scarle’s daughter, Anna Winter, says there isn’t enough evidence to determine who died first.

In that case, under the Law of Property Act 1925, it would be presumed that the older Mr. Scarle died first, putting Ms. Winter in line to inherit the house.

The question is whether the police report proves beyond reasonable doubt that Mrs. Scarle died first, or whether there’s room for interpretation.

The importance of writing a Will

The tragedy of the story is that if a Will was in place, there would be no need for the step-sisters to battle in court.

As Director of The Probate Practice Joel Weitzman puts it, “This case demonstrates the importance of having a Will. The article mentions that the house was purchased using funds provided by Mrs Scarle but without a Will it is unknown what the couple’s intentions for the house were.

They may have been aware that on the first death it would go to the other and possibly the survivor would worry about a Will at that stage. What is certain is that the few hundred pounds they ‘saved’ by not writing Wills will be dwarfed by the legal costs of this dispute.”

Drafting a Will can help to avoid costly legal disputes for your loved ones. For help drafting yours or help with any other probate issue contact Joel Weitzman at j.weitzman@probate-practice.co.uk.

A Digital Death

The internet has grown fast over the past two decades – nearly as fast as those pesky Pokémon pop up – and 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.

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?