As an accounting firm we will raise with our clients the issues that their family may encounter by having a Will that is not appropriate for their current situation. In more recent times we have seen Wills that are 30 years old and were prepared when the children were very young. In nearly all of these Wills, the assets were left equally to all surviving children on the passing of both parents.
The implications of such Wills can be that children who have come home and are now working on the farm could miss out on receiving what has been promised to them for many years. This happens because on the passing of the parents, the assets will be divided among the children equally. With the current price for rural land, in most cases it will be impossible for the child that is now working the property to be able to acquire the interest of their siblings without incurring a debt that is financially not viable for the property.
With increasing family disputes over estate assets, largely due to the increases in rural land values, having a Will that reflects your current family situation and business structure has never been more important. Older Wills may not cover new business structures you operate through such as a company, trust or partnership. With most Wills having a ‘Residue of Estate’ clause, the new company, trust or partnership may fall under this clause resulting in unintended distributions or control of your estate assets going to persons not intended to receive such assets or control.
These issues can be resolved by simply updating your Will and implementing one that is relevant to the current family situation. With the assistance of a good solicitor who works in the agricultural field and understands the issues facing rural people, this ensures that the land and business go to the right people.
Our experience has shown that many people avoid updating their Wills simply because they do not want to face the reality of getting old. Unfortunately, you do not have to be old to die. Many people say that they will look at it in the future and again due to unforeseen illness or accident, they never get the chance to update the Will resulting in very unfavourable outcomes for the surviving family members.