The Scottish Parliament has passed the Succession (Scotland) Bill as a first step in attempting to modernise succession law in Scotland and ensure that "the law is fairer, clearer and more consistent."
The Bill implements a number of proposals recommended by the Scottish Law Commission, with more radical reforms, such as changes to the rules of intestacy and the rights of cohabitants, expected to be brought forward in the future.
Some of the key reforms in the current Bill include:
- The revocation of benefits or appointments in favour of a spouse or civil partner in a Will when the couple legally end their relationship (eg by divorce or annulment) unless the Will expressly provides otherwise;
- The courts will be given the power to 'rectify' a Will where it can be shown that the Will did not reflect the instructions given to the drafter of the Will;
- The rule under which earlier Wills revive if a later Will is subsequently revoked will be abolished;
- Where a beneficiary is a direct descendant of the 'testator' (i.e. the person making the Will) and the beneficiary dies before the testator, the beneficiary's surviving children will inherit that share of the testator's estate, unless it is clear from the wording of the Will that another outcome was intended. This provision of the Act is similar to an existing common law rule;
- New protections for trustees, executors and people acquiring property following an error in the distribution of property; and
- The removal of the executor's requirement to obtain a bond of caution (a form of insurance policy) in small intestate estates.
These reforms highlight the importance of ensuring the precise wording of your Will accurately reflects your wishes. The new Act will come into force on a date to be decided by the Scottish Ministers, but with these reforms and more to come in the future, it is more important than ever to seek specialist advice in the preparation and review of your Will, and in relation to inheritance planning generally.
Whether your affairs are simple or complex, we can tailor your Will to ensure your assets are passed on to chosen beneficiaries in the most tax efficient manner. Our Private Client team has a wealth of experience of advising on Wills and succession planning, and would be delighted to discuss your wishes with you.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
