Category Archives: wills and deeds

Cohabiting couples beware

 

Another cautionary tale has hit the press this week highlighting the disastrous consequences on not updating your will.

A 69 year old grandmother is having to fight for a roof over her head after her partner of 18 years died with an out of date will.  Miss Williams and Mr Martin had been living together in a property owned by them on a 50/50 basis.  Miss Williams was divorced, but Mr Martin had never actually divorced his wife or updated the will written whilst he was still living with her.  When Mr Martin died suddenly, Miss Williams found that everything owned by Mr Martin, including his share of their house, was inherited by Mr Martin’s estranged wife.  Miss Williams is now having to make a claim through the courts to secure her financial stability for the future and to prevent the sale of the house.

This could have been avoided if Mr Martin had updated his will, or divorced his wife.  The oft repeated notion of “common law spouse” is a myth.

Cohabitees do not have the same rights and protection as spouses, even estranged ones.  Couples who are living together should take legal advice to ensure that the survivor will be provided for on the death of the first party.  Likewise, if your circumstances have changed since writing your will you should make sure that your will still meets your needs.

Contact Gail Sandford of Cohen Cramer solicitors on 0113 2247813 for a free initial consultation regarding a new or updated will.

Transferring property as a gift – are you sure????

 

Nicola White of Cohen Cramer Solicitors looks at the pitfalls of being generous without being clever.

As a legal practice with recognised expertise in such matters we are regularly contacted by people considering transferring property to their children.  Their reasons for wishing to do so include a desire to avoid having to sell the property to pay care home fees, as a means of reducing an inheritance tax liability, a token of love and affection or a wish to see their family benefit from their generosity whilst still alive.

If you are considering transferring property, for whatever reason, great care is needed to ensure that you fully understand the implications of the transaction and to make sure that the transfer is the best way to achieve your goals.  For example you may still face an Inheritance tax liability if you transfer your home but continue to live in it.

You also need to be aware that a transfer is just that – you are giving up your rights to your property.  Once transferred the property belongs to the recipient and they can do with it as they wish.

This was the issue faced by Sheena Godden recently who failed in her bid to have a transfer to her son and daughter-in-law over turned.  In 2012 she transferred her estate worth about £1.2 million, to them, after they agreed to move into the property and, at their own expense, renovate it back to its former glory.

Mrs Seddon later claimed that she did not understand the full implications of the transfer and believed she was simply giving the couple a right to live in the property.  The judge did not believe her and accepted that she had known exactly what she was doing but had changed her mind about the gift following a family fall out.  Mrs Godden is now facing legal bills reported to be in the region of £200,000 this is in addition to no longer owning her £1.2 million estate.

Even though ultimately successful her son and daughter-in-law had to endure defending court proceedings issued against them by Mrs Godden; not a pleasant experience for any family.

Whether you are planning to transfer your property, or whether you are the recipient of the property this salutary tale shows the importance of taking independent legal advice and the importance of both parties fully understanding the nature and implications of the transfer.

So if you are either the person transferring or the recipient in such an arrangement speak to us first. It is a lot easier to get sound legal advice before anything is signed than to try and argue against it at a later date.

To get the advice you need contact Nicola White at Cohen Cramer Solicitors on 01132247813 or email at nicola.white@cohencramer.co.uk  for a free initial consultation.