Naomi Pinder, head of our Wills and Probate department, comments:

"There has been a recent Court case (Wright v Gater 2011) involving a large estate of around £520,000.00 passing to a 3 year old child under the intestacy rules. Under the intestacy rules the money is held on trust for the child until he reaches 18 years and it is then paid to him.

"The child’s mother considered that he would be too young at the age of 18 to deal with such a large amount of money and she applied to the Court for an Order that the child only inherited the money at the age of 30 years and that parts of it could be released before that age for his use and benefit e.g. university fees.

"The case was heard in the Chancery Division of the High Court and the Judge decided that the child receives the income at the age of 18, receives 10% of the capital when he reached the age of 21 and the balance at the age of 25.

"The Judge accepted that 18 was too young an age to receive such a large sum of money but on the other hand, he had to take care not to change the intestacy rules too much.

"I think this case shows how important it is to make a will to plan properly for the future and make arrangements for your loved ones. The deceased person was the father of the child who cohabited with the mother but was not married to her. His father died leaving a substantial estate and then tragically, the child’s father died leaving his own estate (which was only £6,000.00) but also the money he had inherited from his own father (being the child’s grandfather).

"Often people do not realise how wealthy they are in death whereas in life, their means are quite modest e.g. The value of a house, life insurance and death in service benefit.

"The stress and anxiety caused to the family by the Court case is immeasurable but and the legal & Court costs will have been incredibly high and could have been altogether avoided.

"Please contact me without delay to discuss your arrangements and I will await your call."

Remember at all times – What is your legacy, chaos, or good planning?