I was in the office recently when I got a call from Tom (not his real name), who had been at one of our previous webinars. He eventually got around to completing his Will with his solicitor but felt that something was wrong when signing it.
I asked a number of questions and was absolutely shocked to hear what the solicitor had professionally advised Tom and his wife to do.
The Will Tom signed would transfer all his assets upon his passing to his wife (and vice versa). There is nothing wrong with this and logical thinking. But it’s the next part of the advice that shocked me. His son with additional needs, who is in his late 20s, was disinherited from the Will, and his sister, who is married and working, is now the sole beneficiary of the family’s estate.
When both parents pass away, she will inherit everything: the family home, any savings, pensions and assets are all going to be her. Her brother will not get a penny.
It is beyond understanding how anyone would think of making someone financially poor and totally reliant on the state and the HSE as acting in the best interest.
The only mention in the Will was that his sister would “look favourably on him.” To me, this is not legally binding and too wishy-washy.
I first spoke to Tom about why he wanted to pay the Revenue so much of his hard-earned money. Because the parents’ estate is not being split equally between two siblings, the sister will be over her personal threshold for inheritance, so she will need to pay the Revenue 33% inheritance tax.
The second area was what happens to the brother if he ever falls out with his sister. In Tom’s Will he has taken away his son’s power and financial independence. His sister is under no legal obligation to do anything for her brother. I am sure she is a kind person and has great love for her brother.
In my mind, the solicitor hasn’t really considered the brother and what would happen if his sister falls on hard times. During the next recession, she may run into financial difficulties like so many families did, and the bank or some financial institution will come looking for their money.
I finally asked Tom how strong his daughter’s marriage was, which Tom thought was strange. I asked because if she were ever to get a divorce, what would happen to any money she inherited for her brother? Will the ex-husband separate his wife’s financial situation from her brothers?
It is highly unlikely.
I could have gone on, but to be fair, Tom knew the Will wasn’t suitable but just signed it anyway. It was not his fault. I suppose in all walks of life, there are times we are totally reliant on the professional we hire, and we assume they know better.
This is not the first I have heard this type of advice.
In my opinion, no person with additional needs should be disinherited from their parents’ Will, and everyone should inherit more than their siblings, NOT less.